By HOI ABC

BLOOMINGTON – Bloomington residents got their first look at how the city government’s budget might look when the next fiscal year starts in May, and it shows strong revenue even as the area’s economy recovers from the COVID-19 pandemic.

At Monday night’s city council meeting, government staffers said they expect to present a $269.1 million spending plan, up 7% or $17.4 million from the current fiscal year.

City Manager Tim Gleason said there’s “guarded optimism” about the city’s finances, but he cautioned the pandemic is not over and still has the potential of wreaking havoc on the budget if, for example, there’s an outbreak among public works crews.

Finance Director Scott Rathbun said the city stands to gain $5 million from the online retail tax, online streaming, and the tax on sales at the cannabis dispensary.

There’s also an $850,000 revenue increase in the hotel/motel tax, thanks to people from out of town working at Rivian.

Gleason said city finances are in good enough shape to pay cash for major equipment purchases instead of leasing equipment.

Staffers plan for $32 million in reserves, prompting Alderman Nick Becker to wonder if some of that can be returned to taxpayers. He also asked staff to find places to cut costs.

“There are ways to be more responsible and to reduce as a philosophy to protect our citizens and even lower taxes rather than raise them while still getting the work done and providing the necessary services,” Becker said.

Council member Donna Boelen suggested some of the reserves be used to make a larger down payment on the new O’Neil Park aquatics center to reduce borrowing costs.

A public hearing on the budget is scheduled for March 14, with the council’s final vote April 11.