(Alex Eady, WFIU/WTIU News)
Bloomington City Council discussed new revenue proposals for almost four hours Wednesday, and it is unclear if mayor John Hamilton will gain enough support to raise the local income tax (LIT). It’s also unclear if council will cast a final vote next week.
Last week, Hamilton proposed a 64 percent increase to the Monroe County LIT. He suggested the additional $18 million in city revenue be invested into four categories:
- Public safety- $4.5 million, including $1.5 million to fund the new police union contract and $2.5 million for police and fire facility repairs
- Climate change- $6.5 million, including $4.8 million for Bloomington Transit
- Equity and quality of life- $4 million, including $1 million to offset the impact of the LIT increase on low- or fixed-income households
- City services- $3 million
Based on the demographic makeup of the LIT council, only eight Bloomington City Council members could implement the tax hike for all Monroe County residents.
READ MORE: Hamilton attaches number to proposed income tax hike, seeking $18 million for city
As it is currently written, three council members support the proposed LIT increase, one member does not, three have unanswered questions, and two were not present during the vote.
Public Safety
The consensus among council members is that funding public safety is critical with a police union contract awaiting approval. However, Bloomington firefighters are also raising concerns.
“Much like the police department, we here at the fire department have been on a steady decline in our facilities, staffing and morale,” said Jordan Canada, a first-class sergeant and firefighter union president.
He said firefighters will be making 16 percent less than first-class police officers by the end of their current contract.
Fire chief Jason Moore said facility improvements are also critical.
“The conditions your firefighters live in is close to deplorable,” he said. “And that is being very kind.”
Community feedback
During Wednesday’s meeting, the Greater Bloomington Chamber of Commerce shared preliminary results from a survey of its members and community residents. In total 196 people responded and just over 90 percent are against the proposal as written. About 60 percent of respondents said public safety is their top priority.
“What concerns us about this particular proposal is that it appears to be an all or nothing package that puts our public safety services in harm’s way should the full tax package not be accepted,” chamber president Eric Spoonmore said.
He asked for council to take more time to find a solution to public safety challenges that do not depend on an LIT increase.
“They’re only asking for 1.5 million additional dollars to meet the salary needs,” Spoonmore said. “Let’s start there and figure that out first.”
However, several council members pushed back on the survey results. Councilmember Matt Flaherty said it’s not very useful to just say ‘yes’ or ‘no’ on something. Instead, he wants feedback on specific investments, such as those in public safety.
“Mr. Spoonmore was just on talking about $1.5 million in salaries, so we know that one,” he said. “But what about the $2.5 million a year in debt service to support the facility upgrades?”
Councilmember Kate Rosenbarger said council needs to consider more than the chamber’s survey.
“Surveying chamber members is a specific portion of the population,” she said. “I think if we put a survey on our transit buses, we would get another idea of what people really need.”
Council comments
Councilmember Dave Rollo said council needs more time to deliberate the package.
“I will be working with my colleagues, and I hope we will be considering an expanded time horizon in terms of deliberation so we can do this correctly and considerately and judiciously,” Rollo said.
Councilmember Susan Sandberg said she can’t ignore county residents outside her jurisdiction.
“I would feel much better about this LIT increase if it had more inner governmental unit buy-in, more consensus in Monroe County that this was a necessary step in ensuring adequate public services,” she said.
Councilmember Ron Smith said he struggles with the size of the package.
“There are priorities in this package that I 100 percent support,” he said. “And then there are some I don’t feel are essential.”
Flaherty said the entire proposal is justified, especially given the dire situation surrounding climate change.
“We are a leader in Indiana on this issue,” he said. “I think it would be a failure for us to not invest meaningfully in those things."
Timing
Corporation council Beth Cate said it is possible for council to continue discussion after next week if the resolution’s language does not substantially change or if the proposed rate does not increase.
“While it may be legally possible, I do think time is quite important to let us begin the [budget] planning process,” Hamilton said.
Councilmember Flaherty recognized the need to act swiftly but said reaching a consensus among council members is not always easy.
Council took a due pass vote of 3-1-3.
Councilmembers Rosenbarger, Flaherty and Jim Sims voted in favor of the proposed LIT increase. Councilmember Ron Smith voted against the current proposal. Councilmembers Sue Sgambelluri, Susan Sandberg and Dave Rollo abstained. Councilmember Isabel Piedmont-Smith left before the vote, and councilmember Steve Volan was not present.
General obligation bonds
Along with his proposed LIT increase, Hamilton proposed two general obligation bonds. Each bond is not to exceed $5.8 million dollars.
The council sent a favorable recommendation of 6-0-2 on an amended version of the public works bond. Councilmembers Flaherty and Piedmont-Smith authored the amendment, which seeks to narrow the list of projects in hopes of meeting council priorities.
As it stands, the amended public works bond prioritizes only four projects:
- $2.5-$5 million for a multiuse path on High Street from Arden Drive to Third Street
- $1.5-$2 million to convert all streetlights to LED lights
- $500,000-$1 million for construction of downtown ADA-compliant curb ramps
- $300,000-$1 million for sidewalk improvement projects
Councilmember Smith and Rollo abstained from the vote.
Flaherty and Piedmont-Smith also authored an amendment to the park’s department general obligation bond. This amendment includes a list of five projects:
- $200,000 to replace a segment of missing sidewalk on South Rogers Street by Switchyard Park
- $1.5 million for protected bike lanes on West Second Street from Walker Street to the B-Line trail
- $800,000-$960,000 to design a multiuse path on North Dunn Street from the S.R. 45/46 bypass to Old S.R. 37
- $2.4-$2.9 million for protected bike lanes on Covenanter Drive from College Mall Road to Clarizz Boulevard
- $375,000 for Griffy Loop Trail dam crossing
This amendment received a 4-0-4 due pass recommendation. Councilmembers Smith, Sandberg, Sgambelluri, and Rollo abstained.
Council is scheduled for a second reading of the revenue proposals April 20.
