 The City of Bloomington has officially approved a significant water-rate increase that affects every customer class—residential, commercial/industrial, institutional (including Indiana University), wholesale utilities, and irrigation users. The Bloomington Common Council passed the ordinance on September 30, and will now proceed to the Indiana Utility Regulatory Commission (IURC) for final review and approval.
This update summarizes the impacts on businesses, the justification provided by the City, and considerations for Chamber members—including Cook Medical and Indiana University, both of whom have expressed opposition or concern. What Passed on 9/30 According to the B Square Bulletin report, the City Council voted on Sept. 30 to approve the drinking-water rate increase, sending the measure to the IURC for final action. This aligns with the structure shown in Ordinance 2025-35 and supporting documents in your packet. Key Approved Rate Changes (per Ordinance 2025-35)
Impact on Businesses Large Commercial & Industrial Users
Why the City Says the Increase is Needed Per Crowe LLP and Stantec’s studies in the rate-case packet:
Next Steps: IURC Review (2025–2026) Ordinance 2025-35 now advances to the Indiana Utility Regulatory Commission (IURC).
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 Bloomington loves a good streetscape redesign. We also love a good debate. And right now, the City’s College–Walnut Corridor Study is giving us plenty of material for both.
The City’s goal is clear: transform Bloomington’s original 1950s-era highway pair into vibrant, walkable, economically strong corridors. We’re on board with that vision. Who doesn’t want safer streets and stronger business districts? But as with most big ideas, the devil’s in the details — and in this case, in the parking counts, traffic patterns, and memories of other Very Big Projects That Got Complicated (hello, Route 7). At our December Advocacy Council meeting, the Chamber dug into the City’s two design alternatives — the One-Way Pair (the system we all know and sometimes love) and the Two-Way Conversion (the concept that’s generating the most eyebrow raises). Here’s where we landed. The One-Way Plan: Familiar… but with a Parking Diet The one-way option keeps College and Walnut flowing as they do now but adds upgraded trails, new green space, more loading zones, and the kind of placemaking that actually helps businesses. But — and this is a big but — it removes a lot of parking. Between 3rd and 7th Streets alone: 143 spaces → 82 spaces. That’s not a haircut; that’s a buzz cut. For businesses that rely on lunch-hour turnover, short-term parking, or downtown drive-up customers, those lost spaces matter. Still, the concept improves safety without fundamentally rewriting the corridor’s DNA — and there’s some comfort in that. The Two-Way Proposal: Interesting Idea, Thin Data The City’s two-way idea splits the corridor personality in two:
On paper, it brings one extra parking space downtown. Yes — one. Bloomington businesses are not likely to erect a monument in its honor. The bigger concern? We do not yet have strong, Bloomington-specific data showing that converting two major, high-traffic arterials into two-way streets will improve safety, reduce conflicts, or support businesses long-term. Cities nationwide have had mixed results, and Bloomington’s unique traffic conditions — special event surges, IU game weekends, trucks making deliveries to older buildings with narrow loading options — raise legitimate questions. The Chamber’s position right now isn’t “no.” It’s “show us.” And preferably with charts, peer-city case studies, and a simulation or two, we can actually understand without a PhD in traffic modeling. A Quick Word About the 7-Line Look — we all appreciate bike infrastructure. Bloomington should be a leader in multimodal mobility. But it’s also fair to acknowledge that the 7-Line’s rollout created a deep well of community-wide skepticism about large transportation redesigns. That doesn’t mean we reject big ideas. It just means Bloomington is still recovering from a project that looked great in renderings but felt over-engineered in reality — and the public wants assurance that we’re not repeating that experience on an even larger corridor. Deliveries, Events, Mobility: The Practical Stuff Matters Our members raised recurring concerns:
What the Chamber is Doing Next The Chamber is coordinating with the City to host a structured public meeting — not an open house, not a comment box, but a real presentation with:
Bottom Line We support the City’s push for safer streets and economic vitality. We support the vision. We support the goals. But on the two-way conversion? Let’s just say we’re holding our applause until we see more than a sketch and a parking count of +1. Bloomington has big dreams — and when we do big right, we do it really right. But residents and businesses deserve confidence that this project won’t become another example of admirable intentions meeting avoidable complications. Before Bloomington changes the direction of two major streets, we need clear data, transparent engagement, and real-world operational answers. And we’ll keep working to make sure our business community is informed, heard, and central to that conversation.  Mayor Thompson's administration implemented Priorities-Based Budgeting (PBB) to the 2026 budget but felt the results could improve. PBB focused on values, not results. Facing new revenue limitations, the administration is transitioning to Outcome-Based Budgeting (OBB) for the 2027 budget. OBB shifts the budget question from "what are our priorities," to "how will we know if these priorities worked?"
What Is OBB? How Does It Work? OBB is the process of aligning resources with available funding and puts an emphasis on expected outcomes. While it follows a similar vision alignment like PBB, it stresses measurable outcomes and transparency. This strategic budgeting process:
Roadmaps and Applications from Case Studies Cities like Baltimore, MD and Winder, GA have successfully implemented OBB in their budget process and continue to each year. While their cities are bound by different populations with different needs, their roadmaps are very similar:
With the OBB need for enhanced collaboration, cities have used mixed leadership structures and teams to manage implementation. Baltimore has a mayoral leadership team which leads budget talks and assembles Results Teams made up of mayoral staff, city department staff, budget and performance staff, and two citizens. Results Teams are tasked to coordinate with city agencies and articulate outcome priorities and costs. Creating these teams makes organizational sense when applying OBB framework to a population of 568K people. The city of Winder with a population of 21K, has a Chief Administrative Officer (CAO) spearheading the incentive with assistance from the ICMA and city leadership. OBB relies on flexible and honest leadership for successful outcomes, and a structure that has capacity to meet population needs. What the City Should Consider While this approach is incredibly comprehensive and transparent, it is inconvenient. It incorporates everyone into the budget discussion, takes in-depth understandings of programs, services, staff, revenue, and other expectations into account, and enhances collaboration. While these are all good things a city should have in its budget process, it is extremely time consuming and labor intensive. With that considered, the City Council Fiscal Committee has started timeline conversations now to prepare for the ambitious 2027 budget. The next questions should address how to organize roles during this budget process. How will Bloomington delegate leadership roles to move OBB forward?  On Wednesday, October 8th, the Bloomington City Council voted to pass the $163 million budget for 2026. This decision had two dissenters: Councilmembers Flaherty and Rosenbarger due to lack of trust in the mayor’s administration. The $163m budget increased from $147m last year, mostly due to the $12m in anticipated revenue from the Food and Beverage Tax.
There were some notable changes and appropriations to the budget, including:
Comparing past spending, the city had projected deficit spending in the last 5 budget years but ended in fiscal surplus. While the city track record shows resilience, they have not treated the city’s deficit like the vulnerability it is. The city needs to prioritize lowering the deficit, but this will be much harder to do with SEA1's implications. To do so, they will need to cut personnel to get the outcome-based budgeting this Mayoral administration is looking for. It is fiscally necessary to make the cuts that will hamper progress the least, and that will likely translate to putting new hires on the chopping block. Serious reductions need to be made for the city to continue healthy fiscal standing.  At the September 30th Monroe County Council meeting, former Councilor Geoff McKim offered a candid reminder about the challenge facing our community: Monroe County’s projected $4.4 million budget deficit is not being driven by office supplies, travel, or one-time capital expenses. It is overwhelmingly tied to personnel costs — the number of employees, salary adjustments, and the rising price of benefits like health insurance. The Chamber has repeatedly spoken about the need to rein in the number of FTE(s) in the city and county.
Why Personnel Costs Matter Personnel costs are by far the largest part of county government spending. When the budget is out of balance, trimming small items such as supply accounts or travel lines is not nearly sufficient and not the best use of time. To restore fiscal health, the conversation must turn to:
McKim’s testimony made it clear: “There is no path to fiscal balance that doesn’t involve addressing personnel costs.” The County Council’s Challenge This is an incredibly difficult process. Council members hold the purse strings, but they do not have direct administrative control over how department heads run their offices. They cannot simply order a department to restructure its organization chart, consolidate functions, or streamline staff. They can set budgets, but the day-to-day changes that create efficiency must be driven by department leaders themselves. Councilmember Kate Wiltz emphasized that approving a hiring freeze or budget adjustment is only the first step. Implementation is just as important. Since departments are self-contained, the Council’s best tool is to require trade-offs — for example, if a department wants to add a new role, it may need to eliminate another position to keep staffing levels in balance. This approach forces departments to think strategically about their FTE flow charts, maximizing the utility of each role rather than simply expanding. Local Government’s Short Runway The challenge is compounded by the broader framework in which counties operate. For better or worse, local government is a creature of the state. Monroe County must work within mandates set by the Indiana General Assembly, even when those mandates restrict flexibility. Senate Bill 1 (SB 1), for example, reshaped property tax and local income tax structures in ways that limit local revenues. It gives counties only a short runway to adapt, while cost pressures continue to grow. This makes the work of local officials even more critical. The Chamber believes the best government is run by leaders who live in the community and understand its needs firsthand — not by part-time legislators who rarely see the consequences of their policies on local budgets. We have local elections for a reason. County councils and commissioners are best positioned to balance fiscal responsibility with community priorities. The Chamber’s Own Experience The Greater Bloomington Chamber of Commerce faced a similar challenge several years ago. Our organization was not immune to financial pressure. We made the difficult decision to reduce the number of full-time employees (FTEs) while at the same time raising salaries for the remaining staff. The result was a leaner, more efficient Chamber that stayed true to its mission and came out stronger. It was not easy, but it worked. And it showed that sometimes the right path forward is not across-the-board cuts, but fewer positions with stronger pay, resulting in higher productivity and fiscal sustainability. Moving Forward The Chamber respects the hard work of county employees and the elected officials who must make these decisions. But as advocates for the business community, we stress the importance of fiscal discipline. Unchecked deficits today could lead to higher taxes tomorrow, directly impacting local employers and residents alike. As the County Council continues budget deliberations, we encourage them to pursue sustainable, structural solutions to personnel costs. It may require tough choices — but, as our own experience proves, those choices can put an organization back on a stable footing, better in the long run.  When people think about a Chamber of Commerce, their mind often wanders to networking events, business promotion, and educational opportunities. While those are critical parts of what we do, there’s another role that is just as vital: advocacy.
At the Greater Bloomington Chamber of Commerce, advocacy means raising the collective voice of business in local government. It means showing up, speaking up, and working with decision-makers to create a stronger, more vibrant community for both businesses and residents. Why Advocacy Matters
What Advocacy Has Accomplished Over the years, Chamber advocacy has helped deliver tangible results that strengthen both business and community life:
Our Ongoing Commitment Advocacy doesn’t stop with a single vote or project. It’s an ongoing commitment:
Advocacy isn’t just for business owners—it benefits the entire community. Strong public transit helps employees get to work and customers reach businesses. A vibrant convention center draws visitors who spend money locally. Robust public safety keeps neighborhoods, schools, and downtown safe. When local government works well, everyone benefits.  The Hopewell neighborhood project is a shiny new look to smart community planning and development. The neighborhood reuses the site of the former IU Health Bloomington Hospital, which the city purchased for $6.5 million. The neighborhood includes the 1-acre Hopewell Commons Park and will include mixed housing types for different price points. The city is partnering with Flintlock LAB, a firm that specializes in community-based housing solutions to take on this project.
Hopewell’s latest updates Since its master plan was introduced 5 years ago, Bloomington opened a new city park, the Hopewell Commons, in April of this year. They also began construction of the 38 low-income housing units at the former Kohr Administration building in October of last year, which will wrap up in 2026. Since construction is in phases, Hopewell has yet to start construction of homes. The latest update from the city was on September 8th, 2025 notifying that street construction has begun on West Second Street, the northern border of the project. Street construction will modernize utilities (including water and sewer, natural gas, power, and natural gas), 10-ft sidewalk, tree plot, bicycle lanes, and street lighting. The project will be broken up into 6 phases where there will be road closures intermittently. Construction is expected to carry through until June 2026. How Portland’s permit ease can be applied to Hopewell While the city is finding ways to streamline development, there could be a solution that would reduce the time to break ground on housing: through simplifying permits. This is an effort that the city of Portland, Oregon is exploring to expedite economic development. By pausing certain permits, it reduces costs for permit applications, and reduces the review wait time. Through their Code Alignment Project, they are pausing requirements until 2029 on permits regarding:
Need for speed The city should consider solutions such as a pause in certain permits without sacrificing safety and begin swift development efforts. With the new Herald Times article stressing the need for affordable mixed housing in Bloomington, a project like Hopewell Neighborhood is more needed than ever.  Here in Monroe County, we’re fortunate to have a public school system that delivers opportunities many communities only dream of. For me, this isn’t just abstract—it’s personal. My own son attends Templeton Elementary, where I see every day how dedicated teachers and innovative programs give students the tools to grow, thrive, and stay curious about learning. At a recent MCCSC board meeting, Superintendent Dr. Winston laid out just how much our kids can access right here at home:
In short: our schools both in MCCSC and RBB are doing amazing work—and the results show it. Test scores are above state averages, graduation rates are climbing, and students are leaving prepared for college, careers, and everything in between. The Challenge Beneath the Success At the same time, MCCSC is facing tough realities: fewer young families are moving here, enrollment is declining, and state policy changes will mean millions less in revenue in the coming years. Superintendent Markay Winston has cautioned that these losses are expected to continue for at least the next seven years—making it clear that this is not a short-term issue, but a structural challenge the district must confront. Where the Chamber Steps In Through the Chamber’s Success School, we’re proud to partner with MCCSC to bring real-world career exploration to students—career fairs, Reality Store®, job shadowing, and more. This work is even more important now as Indiana rolls out new graduation requirements that tie directly to workforce readiness. Our schools can’t do this alone. It takes partnerships—with businesses, with nonprofits, and with the state—to make sure every student has the support and experiences they need. Why This Matters for Everyone Public education isn’t just about test scores—it’s about community vitality. Strong schools:
Moving Forward As a community, we need to champion MCCSC and push the state to align funding with the real needs of today’s education system. Investing in public education is investing in Monroe County’s future workforce, economy, and quality of life. Because when our schools thrive, our community thrives.  Bloomington should be a city where opening or expanding a business is predictable, timely, and cost-effective. Too often, members describe the opposite: uncertainty, slowdowns, and requirements out of scale with the project. Here’s what we’re hearing, a concrete example, and how we’ll partner with the City to improve the experience—starting now
What’s going wrong (in plain terms)
A former doctor’s office at West 2nd Street was ready to become an emergency veterinary clinic. Early guidance pointed to a simple interior remodel with a minor site plan. Late in the process, the team learned the site sits in the Transform Redevelopment Overlay (TRO), which caps parking at five spaces (including ADA) and requires permeable pavers. Those late-breaking constraints added cost, delay, and the likelihood of a variance. Even a “temporary occupancy pending variance” path meant uncertainty and legal expense—jeopardizing a viable reuse and leaving a building dark. Where we’re aligned with the City The Chamber’s goal is not to lower standards; it’s to right-size the process so health, safety, and accessibility remain paramount while routine reuses move quickly. The City’s Planning & Transportation Department has expressed willingness to work with the Chamber and our members on pragmatic fixes, pilot improvements, and shared metrics so businesses can plan with confidence. Hopewell as a model for “open for business” At Hopewell, the City is demonstrating a more predictable path by front-loading clarity and repeatability—using tools like pre-approved designs and streamlined reviews to reduce risk and shorten timelines. That same playbook—clear standards up front, repeatable templates, and quicker administrative decisions—can be adapted to commercial reuse citywide. Scaling those practices would send a strong, practical signal that Bloomington is open for business. What we’re proposing—co-designed with Planning & Transportation Create a dedicated “ReUse Path” for low-impact, like-for-like tenant changes in existing buildings:
Next steps (our offer)
 Bloomington is a community known for its compassion—a city of second chances where people come to rebuild, restart, and recover. But even the most open-hearted places require structure, accountability, and public safety to truly thrive.
Over the past month, the Greater Bloomington Chamber of Commerce has spoken directly to the City Council and community leaders about the rising concerns related to homelessness. The hidden cost burden is being quietly shifted to residents and businesses. These are not abstract concerns. They are daily realities that are shaping how families, employees, and business owners interact with our city’s public spaces. When Public Disorder Undermines Public Trust Incidents like the recent arrest on the B-Line Trail or the growing tension around aggressive panhandling on Kirkwood aren't isolated. They reflect a larger trend: a city service system that is saturated, leaving police, outreach teams, and property owners overwhelmed and under-resourced. The situation at Crawford Apartments is a cautionary tale. Built with the best intentions to house formerly homeless residents, its long-term sustainability has suffered due to a lack of supportive services. Units have deteriorated, case managers are overloaded, and the surrounding neighborhood has borne the brunt of public disorder and safety concerns. One business nearby even had to close. The Hidden Economic Burden on Property Owners and Tenants The impact isn’t just emotional—it’s financial. Since 2020, WS Property Group has reported more than $514,000 in costs directly tied to safety and cleanup related to nearby encampments and disruptive behavior. This includes thousands of dollars per month in private security, rising insurance premiums, and biohazard cleanups that stem from the lack of proper syringe disposal programs. These costs don’t stay with property managers. They’re passed on to tenants and small business owners in the form of higher rent and increased liability. The same businesses we rely on to create local jobs and economic vitality are now shouldering costs that should never fall solely on the private sector. Compassion and Enforcement Are Not Mutually Exclusive Let’s be clear: The Chamber is not calling for punitive responses. We fully support the Housing First model and trauma-informed outreach strategies. But real compassion doesn’t mean turning a blind eye to dysfunction. As Mayor Thomson recently put it: “We cannot arrest our way out of this problem.” We agree. But we also cannot fix it by ignoring the erosion of public order. The Chamber believes in a holistic approach—one that includes:
We appreciate the City Administration’s recent public commitment that “safety comes first.” Now, we need to translate that principle into visible, accountable action. A Balanced Path Forward Bloomington is at a crossroads. We can continue down a path where compassion and disorder become confused, or we can chart a new course—one that brings heart and backbone together. The Greater Bloomington Chamber of Commerce stands ready to work with our public and nonprofit partners to build that path. Because being a progressive city should never mean surrendering to dysfunction. Let it be said of Bloomington in this moment: that we found our balance again. That we renewed our commitment to both safety and dignity—for everyone. -- |
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