By Howard Packowitz

BLOOMINGTON – A budget deficit has turned into a surplus for Bloomington’s city government.

City Manager Tim Gleason told the council at a committee-of-the-whole meeting Tuesday night there’s a $500,000 budget surplus, from a $2 million general fund deficit the same time a year ago.

Gleason said the city can use the surplus to fund smaller “one and done” projects.

“This is an opportunity to potentially undo a trend where we’ve been forced in the past, recession and post-recession, where we’re borrowing for some of our equipment purchases such as vehicles. Much better practice is to pay as you go, if we can,” said Gleason.

In a cost-saving move, the council a year ago was forced to reduce free bulky waste pick-up to just twice a year, and city departments made $160,000 in other cuts, according to city staff.

Gleason said there’s an additional $500,000 surplus in the capital projects fund, as the city plans street, sewer, and sidewalk repairs and other improvements in the coming fiscal year.

City Finance Director Scott Rathbun said the government is reaping the benefits of increased property and income tax revenues, gains in food and beverage taxes, and about a $200,000 increase from the previous year from internet sales taxes.

Higher interest rates have netted the city another $200,000, according to Rathbun.

The proposed budget will be presented to the council February 25. The city has scheduled a March 11 public hearing before the council takes final action April 8.

Howard Packowitz can be reached at [email protected]