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Bloomington committee advances 2025 city budget after questions on high reserves and CREED funds
Summary
The Committee of the Whole voted to forward the city’s proposed 2025 civil budget to full council after extended questioning about fund balances, CREED allocations and how bond proceeds might be used; controller Jessica McClellan defended the figures and said the administration will provide follow-up detail.
The Committee of the Whole on Sept. 25 voted to recommend that Bloomington’s 2025 civil city budget proceed to the full council after a long presentation and detailed questions from councilors. Controller Jessica McClellan presented the final budget and enumerated changes made after budget hearings, then answered council questions about reserves, special funds and revenue practices.
McClellan said the city’s DLGF‑reviewed funds total $115,128,135 and home‑ruled funds total $36,545,054, for a combined proposed budget of $151,673,189. She listed specific line‑item changes including $1,000,000 added for transportation plan projects, a $150,000 reduction to a planned UDO study after a consultant quote, and salary corrections that added roughly $1.05 million to police pay.
Why it matters: Councilors pressed whether the administration should be holding an unusually high general‑fund reserve. McClellan said the city is planning to spend down reserves by about $12 million in 2025 but that the projected year‑end general‑fund balance still appears high (about 57% in the presentation). She described the reserve growth as partly the result of unspent budgeted amounts in 2023 and noted pros (strong fiscal health and better bond ratings) and cons (carryover that could fund needed projects).
Council member concerns focused on three areas: transparency of large fund balances; the disposition and original geographic intent of CREED (downtown redevelopment) dollars; and whether certain line items in special funds (for example, a $250,000 item in the parking‑meter fund) are allowable under city code. Public commenters urged the council to preserve CREED funds for downtown capital projects such as a proposed downtown circulator.
On tax‑rate reporting, McClellan described the Department of Local Government Finance practice of 'advertising high' on form filings so the DLGF has room to make technical adjustments without reducing the city’s full levy. "We have to advertise a higher tax rate," she said, explaining that the practice gives the DLGF flexibility with the four‑decimal rate calculations.
Clarifying details the administration pledged to supply include a detailed breakdown of where Hoosier Fiber/Meridian TIFF payments appear (the so‑called digital equity fund), a CREED spending report for 2024, and a follow‑up on whether the $250,000 parking‑meter allocation complies with the municipal code.
The committee’s recommendation to forward the appropriation ordinance was recorded by the clerk and will be considered at the full‑council adoption hearing. The administration said it will continue to provide more detailed documentation requested by councilors ahead of the adoption vote.
