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Bloomington previews FY27 budget as $81.9M in water projects drive historic capital spike
Summary
City Manager Jurgens and budget staff presented an FY27 preview that holds operating increases small while front-loading roughly $81.9 million in mandated water capital projects; council members pressed staff on grocery-tax allocations, possible bonds and long-term forecasting.
Bloomington — City Manager Jurgens and budget staff gave a detailed preview Feb. 23 of the proposed FY27 budget, emphasizing a modest operating increase but a historic capital spike driven by water infrastructure work.
Jurgens said the proposed FY27 budget is up “a little over 8% from the FY26 approved” on a gross basis but that operating increases are small; the large change is capital spending. “So why the large increase? The… elephant in the room… is the water project. So, we have $81,900,000 a historic amount in planned water capital projects for FY27,” Jurgens told the council, citing lead-line replacement and system-wide water-main improvements among the work planned.
Staff said the water projects include more than $8 million for lead-line replacement and about $60 million in system-wide improvements; the city additionally identified a $6.9 million aeration project for Lake Evergreen that would proceed if an IEPA grant is secured. Presenters said previously adopted water-rate increases are intended to fund much of these investments.
Outside water, managers proposed increasing asphalt and concrete spending 25% — from $8 million to $10 million — and adding a four-person public-works crew to operate a paver more consistently. The packet also proposes nearly $900,000 in neighborhood-revitalization programming (presenters also referenced a roughly $1,000,000 figure during the presentation) including $250,000 for acquisition and demolition of about 21 properties staff says are not repairable; staff estimated the budget could address roughly half of those properties in the first year.
Budget staff said finance had recommended delaying any large general-fund bond issuance in FY27 until projected revenues materialize, and that enterprise borrowing would still be used for water, sewer and storm projects. Council members pressed on how grocery-tax and home-rule sales-tax revenues are being allocated to infrastructure and asked for further detail on long-range forecasts and the effect of delaying projects.
Staff also noted personnel changes: a proposed net addition of about 10 FTEs (11 positions added, one cut), focused on frontline service areas. Citywide salary increases were proposed at 2.6% (2.3% for the general fund), enabled in part by reductions in overtime and line-item reviews.
What’s next: budget books and the proposed budget will be published online by March 9, directors will present capital projects at the next council meeting, a public hearing is scheduled for March 23, and adoption could occur April 13 if the council so chooses.
