City Budget Reports $6M Positive Variance Ahead of FY 26 Transition

Bloomington City Council members discussed significant financial updates during their meeting on July 28, 2025, highlighting a positive outlook for the city's fiscal health as they prepare for the upcoming fiscal year 2026.

The council reviewed the year-to-date financial performance, noting a $1.6 million surplus in home rule and state sales tax revenues, which offset a $600,000 decline in local use tax. This positive variance is attributed to recent legislative changes that have bolstered sales tax collections. The city manager emphasized that these trends are encouraging as they move into fiscal year 2026, with expectations of continued growth in sales tax revenues.

In addition, the council addressed the city's use of reserves, which is projected to be $8 million for the fiscal year 2025, down from an initially budgeted $14.7 million. This reduction is due to higher-than-expected revenues and cost savings in various departments. The city began the year with $49.8 million in reserves and anticipates ending with approximately $41.7 million, maintaining a healthy reserve balance.

The meeting also touched on the impact of recent developments, such as the new travel center on interstate traffic and its potential effect on motor fuel tax revenues. Council members expressed interest in analyzing how these developments contribute to the city's financial landscape.

As the council prepares for the auditors' review in November, they remain focused on ensuring transparency and effective communication with the community regarding financial performance and future projections. The positive financial trends discussed during the meeting suggest a robust economic outlook for Bloomington as it navigates the upcoming fiscal year.