Hales: Sales tax hike, cuts helped plug budget shortfall

Posted on February 23, 2016

Bloomington city manager David Hales says the city took several steps to cut a multi-million dollar deficit, but the recently approved sales tax increase was the biggest. (WJBC file photo)

By Eric Stock

BLOOMINGTON – After months of meetings involving city officials and a task force looking for ways to plug a multi-million dollar deficit, that deficit is apparently gone.

Bloomington city manager David Hales has presented a balanced budget proposal to the city council that increases spending by 11 percent.

PODCAST: Listen to Scott and Colleen’s interview with Hales on WJBC.

Hales said the biggest improvement came from the sales tax increase approved in September, to the tune of $2.5 million.

“That has been critical to helping us bridge that gap in the general fund,” Hales said.

Hales said the city spent about $1.5 million less on pension costs than expected and made other spending cuts, including the elimination of one bulk and brush waste crews, which he said saved $500,000.

The city had considered closing golf courses and cutting back on Bloomington Center for the Performing Arts operations, based on recommendations from the city’s Budget Task Force, but hasn’t ruled out changes in the future.

The City Council has scheduled a budget session on March 12 and is expected to adopt a Fiscal Year 2017 spending plan in April.

Bloomington’s budget plan can be viewed on the city’s website.

Eric Stock can be reached at [email protected].

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