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State of the City: Hamilton to propose another local income tax hike

By Holden Abshier

Posted February 25, 2022

Bloomington Mayor John Hamilton during Thursday's State of the City Address (Holden Abshier, WFIU/WTIU News)

A local income tax increase is once again possible in 2022. However, Bloomington Mayor John Hamilton did not propose a specific percentage during his seventh State of the City Address Thursday at the Buskirk-Chumley Theater.

“Recent federal support has been essential, but it is not ongoing,” he said. “There is no way to pursue our ambitions and walk our walk without more local resources.”

Hamilton said the city has recieved a total of $22 million in fedral pandemic relief.

He noted the city needs to make continued investments in public safety, including increased police salaries. Additionally, he said the city needs to invest in new facilities and equipment for the police and fire departments, including those damaged in the June 2021 flood.

“We do have substantial capacity, responsibly, to generate additional revenue,” he said. “It is absolutely appropriate to ask about potential plans for walking this walk.”

Hamilton addressed a local income tax increase during the last two State of the City Addresses. He even officially proposed a 0.5 percent increase in 2020, but it failed to get past city council.

In order to raise the local income tax, Hamilton would need the support of the city council, county council, Ellettsville council, and Stinesville. However, the demographic makeup of the local income tax council gives Bloomington City Council majority of the votes.

Another source of funding that was mentioned is the anticipated $10 million in bonds Hamilton promised during the 2022 budget cycle. He has said these bonds will be aimed at sustainability intiatives and city parks.

Hamilton also stressed the city’s need for a mechanism to advance the Climate Action Plan. This means he will form the Green Ribbon Panel, which was first mentioned during the 2020 State of the City, by summer.

Additionally, Hamilton announced that the city is advancing a diversity, equity, and inclusion coalition.

“This coalition will be made up of individuals from the university, from the City of Bloomington, other institutions and alliances, and members of our community,” he said.

Hamilton’s review of 2021 touched on a continued decline in crime, two new downtown parking garages, the first domestic sibling city partnership, and approving 1,900 units of housing, including 280 long-term, affordable units. He also mentioned major community investments such as the new IU Regional Academic Health Center and a pending city-wide broadband investment.

As of Jan. 1, the city’s basic financial reserves are above the target of four months of operational expenses.

“I can report that the state of the city is very strong,” Hamilton said. “We are making it through this global pandemic and recession. We are resilient.”

The entire State of the City Address can be viewed here