Deputy Finance Officer Kari Carlson told the council that Bloomington, like many communities, is grappling with serious budget challenges. "We're facing budget pressures including expiring funding sources, rising costs, and aging infrastructure and facilities," Carlson said.

To address these challenges, the city is adopting Priority-Based Budgeting, a method used by municipalities across the country. The approach evaluates all city programs based on what the community needs most, then aligns spending with the city's strategic plan called "Bloomington. Tomorrow. Together." Carlson explained that the new method will help the city make decisions based on data rather than tradition, while also being more transparent about how tax dollars are spent.

"The goal is to prioritize what matters most and make smart, sustainable choices for the long term," Carlson said. The new budgeting approach will evaluate every city program and service to determine which ones best serve residents' needs and align with the city's strategic priorities.

No official vote was taken during Thursday's presentation, which was informational only. However, the council will have multiple opportunities to weigh in on the 2026 budget in coming months. Carlson outlined a timeline that includes study sessions where council members will dive deeper into the budget details, a public hearing where residents can share their views on proposed taxes, and a final vote on budget adoption. The city council chambers will host the upcoming 2026 Budget Study Session, where residents interested in the process can observe and learn more about how their city allocates resources.