StoryCity Budget and Preliminary Tax Levy for 2027

Bloomington Council Eyes 7% Tax Increase for 2027 Budget

The Bloomington City Council discussed a preliminary 2027 budget on Tuesday that would increase the city's tax levy by 6.6% to 7.5%, driven largely by major investments in fire department modernization, police technology, and the new Community Health and Wellness Center. No vote was taken, but the discussion revealed tension between residents' desire for city services and concerns about rising property taxes.

Published Oct 21, 2026

Deputy Finance Officer Kari Carlson presented the working budget model, which would raise the city portion of the tax levy to between $100.6 million and $101.5 million. She framed the budget challenge as balancing two competing priorities: maintaining Bloomington's quality of life while acknowledging "economic pressures households are experiencing."

The largest budget items reflect significant infrastructure investments. The fire department will undergo a multi-year modernization, with Station 2 scheduled for 2027, Station 5 for 2029, Station 1 for 2031, and Station 6 for 2033. Council Member Nelson emphasized the urgency, noting that response times have not met community expectations. "It doesn't matter if it's your house," he said. "There's only one fire that matters and it's the one that happens at your house."

Public comments revealed resident concerns about the cumulative impact of tax increases over time, with some questioning specific technology investments like artificial intelligence and surveillance cameras. Mayor Busy clarified that the city does not currently use Flock cameras, a type of automated license plate reader system. The City Manager provided historical context, noting that levy increases averaged 3.64% over a 15-year period but have climbed to 8.5% in the last five years, with council direction to moderate future increases.

The council also discussed two other items without taking action. The Bloomington Center for the Arts presented a strategic plan with three scenarios for improving financial sustainability, with Level 1 focusing on "relatively pain-free adjustments" like expanding arts education and food and beverage sales. Council Member Carter expressed relief at having a concrete plan, saying the continuously rising costs had raised questions about "where does it end?"

Finally, planning staff presented proposed changes to multifamily housing standards, recommending reducing streetside setbacks from 40 feet to 20 feet in certain districts to encourage denser, more urban development. The Planning Commission expressed interest in even lower setbacks of 10 feet. No action was taken on any of these items.

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Full analysis

Votes (4)

Approval of Agenda

7-0 Approved

Moved by Council Member Robertson [00:01:58] · Seconded by Unknown [00:02:00]

Brief discussion about a council member joining online and the vote being a voice vote.

Preliminary Tax Levy and Budget Discussion with Public Comment Opportunity

No action taken, discussion only

Kari Carlson, Deputy Finance Officer, presented the current working model for the 2027 preliminary tax levy, projected to increase by 6.6-7.5% for the city portion. The discussion covered major investments in fire department transition, police technology, and the Community Health and Wellness Center, along with potential new revenue sources and the strategic use of the Capital and Debt Management Fund. Public comments raised concerns about affordability, property tax increases, specific technology uses (AI, ALPRs, drones), and the rationale behind certain city investments. Council members sought clarification on long-term costs, historical spending trends, and the new two-year budget cycle.

2026 BCA Strategic Plan and Operations Analysis

No action taken, discussion only

Duncan Webb of Web Management presented a proforma operating budget for the Bloomington Center for the Arts (BCA), outlining three levels of potential cost recovery improvements. These levels involved optimizing space utilization, increasing arts education programs, enhancing food and beverage sales, pursuing external grants, and adjusting fees for Resident Arts Organizations (RAOs). The analysis indicated that early budget adjustments for 2027 already show significant positive impact on cost recovery, with Level 1 (minimal RAO impact) yielding substantial benefits. Council members discussed the ultimate disposition of potential net revenues, the nature of RAO engagement, and the specific mechanisms for space optimization and revenue generation within the BCA.

Multifamily Performance Standards Study Item

No action taken, study item only

Thomas Ramler Olsen from city staff presented proposed amendments to multifamily performance standards, focusing on street side setbacks for RM24 and RM50 districts. The recommendation was to reduce setbacks from 40 feet to 20 feet, with the Planning Commission expressing interest in even lower (10 feet). The rationale included providing flexibility for developers, accommodating infrastructure, and fostering a more urban character, with fire department support for smaller setbacks. Council members discussed the implications of such reductions on density, potential public perception, and the desire for transparency regarding the intent of these changes.

Notable Quotes (16)

The city portion of the levy is currently projected between 100.6 million and 101.5 million, which represents an increase of approximately 6.6 to 7.5% of an overall Bloomington tax levy impact.

— Kari Carlson, Deputy Finance Officer [00:07:07]
Preliminary Tax Levy and Budget Discussion with Public Comment Opportunity

Our budget mission really comes down to balancing two things. We want to sustain and enhance the quality of life that residents expect from Bloomington while also recognizing the economic pressures households are experiencing and the changing demographics of our community.

— Kari Carlson, Deputy Finance Officer [00:08:42]
Preliminary Tax Levy and Budget Discussion with Public Comment Opportunity

residents do express a lot of pride in Bloomington and value city services in the direction of the community. At the same time, affordability is definitely a concern. Uh we are hearing concerns about property taxes and particularly the cumul cumulative impact of increases over time and residents also want to see clear value for the taxes that they're paying.

— Kari Carlson, Deputy Finance Officer [00:15:20]
Preliminary Tax Levy and Budget Discussion with Public Comment Opportunity

the city of Bloomington doesn't have any flock cameras that we use... We do use uh different types of cameras and obviously body cameras with on uh all of our police officers.

— Mayor Busy [00:23:42]
Preliminary Tax Levy and Budget Discussion with Public Comment Opportunity

There was a 15-year period where the average levy increase was 3.64%. In the last five, it's been closer to eight and a half. And the directive that has been given from this council to staff is to work to bring that pendulum back towards the middle.

— City Manager [00:29:43]
Preliminary Tax Levy and Budget Discussion with Public Comment Opportunity

the response times just weren't what I think our community should expect... it doesn't matter if it's your house. There's only one fire that matters and it's the one that happens at your house and how quickly they show up.

— Council Member Nelson [00:33:14]
Preliminary Tax Levy and Budget Discussion with Public Comment Opportunity

My theory of budgeting is uh if you can get a good sense of how spaces will be used that allows you to make reasonable forecasts of revenue and then expenses associated with them.

— Duncan Webb, Web Management [00:48:07]
2026 BCA Strategic Plan and Operations Analysis

Level one really making these relatively pain-free adjustments that are doing things like education, registration, food and beverage, pursuing some external grants, optimizing utilization of spaces a little bit that really does yield significant positive results with very little sort of pain uh to the RAOS.

— Duncan Webb, Web Management [00:52:13]
2026 BCA Strategic Plan and Operations Analysis

I think I've struggled with the continuously increasing property tax levy request, knowing that this is an important amenity, but then also it's just kind of like the question was like where does it end? Like where does it stop? And I think having an an actual strategy and a plan in place is going to be great.

— Council Member Carter [00:54:39]
2026 BCA Strategic Plan and Operations Analysis

nonprofit arts organizations are all in a very fragile financial state. So they're very nervous about anything that might impact their sustainability. At the same time they recognize that change is coming here.

— Duncan Webb, Web Management [00:55:40]
2026 BCA Strategic Plan and Operations Analysis

it looks like uh staffing ends up at roughly the same level regardless of which scenario we choose. Uh if that's the case, the decision isn't really about staffing. It's about how much of the cost we pass on to the reos versus the absorption as a city subsidy.

— Council Member Lman [00:58:19]
2026 BCA Strategic Plan and Operations Analysis

We just want to make things easier uh bring down some of those regulatory barriers that we've identified that can hopefully not gum up the works for uh development projects that make their way to the city.

— Thomas Ramler Olsen, Planning Staff [01:09:47]
Multifamily Performance Standards Study Item

those are important for ensuring enough room for utilities, drainage, sidewalks, all those necessary infrastructure elements for development. Um they also contribute greatly to the pedestrian experience.

— Thomas Ramler Olsen, Planning Staff [01:10:48]
Multifamily Performance Standards Study Item

I'm I'm kind of reluctant to to do the 20, you know, even get to that point. I mean, I mean, the planner in me says move it down to 10... I don't want to you know uh do that knowing knowing that you I just want to make sure that we're as a council understanding what we're doing when we go ahead and do this.

— Council Member Lman [01:13:00]
Multifamily Performance Standards Study Item

What is really the benefit? Well, how many more units are we going to be able to get if, let's say, the 40t get down to 10 or even 20?... if we clearly specify why we we want to do these things these changes.

— Council Member Rivas [01:13:58]
Multifamily Performance Standards Study Item

I think 40T is too much. I think 10 feet is too little. I like 20 feet.

— Mayor Busy [01:17:09]
Multifamily Performance Standards Study Item

Ordinances & Resolutions (18)

Preliminary Tax Levy and BudgetPlan

The current working model for the upcoming budget.

2026 BCA Strategic Plan and Operations AnalysisPlan

Ongoing strategic planning for the Bloomington Center for the Arts.

Multifamily Performance StandardsOrdinance

City standards for multifamily development under review for amendment.

2027 BudgetPlan

The budget to be adopted this year as part of a new two-year process.

2028 Budget (target levy)Plan

A target budget developed as part of the new two-year planning horizon.

Park System Master PlanPlan

Continuing implementation is a major budget investment.

Climate Action PlanPlan

Advancing its implementation is a major budget investment, with additional investments proposed for council direction.

Fire Pension Special Revenue FundOther

A fund considered for use to lessen tax levy impact from fire department investments.

Capital and Debt Management FundOther

Newly renamed fund focused on capital investments and debt management.

Home Energy Loan ProgramProgram

An area proposed for council direction on additional investment.

Quiet Rail StudyStudy

An area proposed for council direction on additional investment.

Urban Forestry Master PlanPlan

An area proposed for council direction on additional investment.

Opportunity Housing Ordinance (OHO)Ordinance

Referenced in connection to multifamily projects and incentives.

Missing Middle Housing projectProject

Recently dealt with multifamily district RM15 standards.

RM15Other

Multifamily district.

RM24Other

Multifamily district where street side setbacks are being re-evaluated.

RM50Other

Multifamily district where street side setbacks are being re-evaluated.

RM100Other

Multifamily district with a 10ft street side setback.

Source document

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Other Topics from This Document

  • Bloomington Center for the Arts (BCA) Strategic Plan and Operations Analysis

  • Multifamily Performance Standards Review

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