Driven by expenses mandated by the federal and state governments, the City of Bloomington is proposing a $370.5 million overall budget for 2027.
That represents an increase of 16.6% over what was originally approved for the previous fiscal year, and is up 6.8% over the revised spending plan for 2026.
“We are really trying to put the focus of the budget to where the public is going to see it,” said City Manager Jeff Jurgens, who was joined by Finance Director Scott Rathbun in presenting a detailed preview of the budget proposal to the Bloomington City Council during Monday’s 80-minute meeting.
The proposal for 2027 puts the general fund at $148.3 million, which is up 8.3% over the current year’s initially approved budget, and 0.7% over the revised budget.
Notably, the amount allocated for capital projects increases 38% to $111.7 million, with an emphasis on street improvements.
“We are proposing an increase of 25% in what we spend on asphalt and concrete, as well as proposing adding a new crew in public works so that we can operate the paver full time and get a lot more use out of that,” said Jurgens.
In what Jurgens called “the elephant in the room,” the proposal includes nearly $82 million allocated to essential water systems, including legally required lead service line replacements and other critical system-wide repairs.
“These are not projects that, ‘Oh, it’d be nice to do this,’ or, ‘You know, we want to build a new water plant,’ or something like that,” said Jurgens. “These are projects that are mandated by the federal government, by the state government, that we have to do. We knew we had to do these projects, and so we’ve been planning for these projects.”
The water capital investment more than doubles, following through on water rate increases and planned investments as part of a 10-year plan. If not for the required water projects, the city’s budget would have decreased 3.5% from the previous year.
“We’re talking about 100-year-plus-old infrastructure in many cases,” said Jurgens. “So not only are we upgrading our infrastructure, this is also going to help us with our water loss of 30% that will indirectly impact water conservation efforts at the two lakes [Evergreen Lake and Lake Bloomington].”
The anticipated budget also emphasizes public safety and commits roughly $1 million toward neighborhood revitalization, while assuring the city’s essential services are met. Salary increases for city employees have been held to 2.6%.
The next step in the budget process will be a formal outline of proposed capital projects presented on March 9. A public hearing on the proposed budget is set for March 23, with final approval coming as soon April 13, ahead of the start of the fiscal year on May 1.
Arcade set to move into former printing office
A redevelopment agreement approved as part of the council's consent agenda sets the stage for a return of the 8 Bit Arcade Bar in a new location downtown.
The entertainment business is expected to be part of the first-floor retail space in the former Pantagraph Printing and Stationery office building at 217 W. Jefferson St. — on the northeast corner of Jefferson and Madison streets, opposite The Pantagraph newspaper’s former longtime location.
The Pantagraph Printing building has been vacant since 2020. Green Building, LLC purchased the property in 2023 with the intention of developing it into a commercial space on the ground level, with room for additional office or retail use on the three upper floors.
A staff memo to the council says the building needs “significant investment” to become a viable commercial asset, such as interior demolition, a new electrical network, upgraded plumbing and more.
Formerly located at 236 E. Front St. in what is now the Pour Bros. Craft Taproom, 8 Bit left that location in 2021. The business also operates a bar-arcade in Peoria. An opening date for the new Bloomington location has not yet been announced.
The site is included in the downtown tax incentive financing [TIF] district the city adopted two years ago. Under the redevelopment agreement, Green Building will be reimbursed 90% of the property tax increment over the first 10 years, and 50% over the ensuing 12 years.
The city also will reimburse 50% of the food and beverage sales tax to 8 Bit in the first 10 years.
Ethics code
During public comment, former McLean County Board member Barbara Findley Stuart called on Bloomington to adopt an ethics code, after urging the Town of Normal to do the same last week.
“Ethics is a must for self-government because the word ‘ethics’ means ‘trustworthiness,’ and when trust dies, democracy dies” said Stuart, representing the Ethics Committee of Bloomington-Normal.
Among seven listed pledges, the proposed code would have council members agree to handle civic affairs responsibly, uphold the spirit of the law and Constitution, and avoid conflicts of interest. The request asks for the ethics code to be read aloud annually, signed by all members, and displayed prominently.
In the only other item of regular business, the council approved creation of an approval process for historic-related content on advertising signage placed on public property.
In an item pulled from the consent agenda by council member Jenna Kearns for clarification, the council approved spending $69,000 on professional services for development of a new sign code.
Other business
Other items approved under the consent agenda include:
- Spending nearly $376,000 for design of a water quality management system at Evergreen Lake;
- An amendment to the zoning map at Old Farm Lakes subdivision, with a replat of specified lots;
- Rezoning a lot in the 1000 block of Maple Hill Road on the west side from office space to multi-family residential; and
- Approving an updated final plat for the Stringtown Solar subdivision southwest of the city, after rescinding a previously approved final plat for a Bloomington Township solar development.
