Mayor Unleashes New Revenue Package

Mayor John Hamilton issued his “New Revenue Package” memo that outlines two revenue streams to meet the administration’s current spending priorities. 1) increase to the Monroe County Local Income Tax (LIT) rate and the issuance of two $5 million general obligations (G.O.) bonds for a five-year duration for capital improvements.  Unfortunately, despite my best efforts I could not get the specified LIT increase.  Based on the almost $17 million spending investments outlined in the memo it would most likely constitute a full 1 percent increase to 1.8450.  Indiana State law has that the income tax encompass all of Monroe County.  Ellettsville and the county council would weigh in as well but since the bulk of the population resides in  Bloomington, it has the majority of the votes.  The revenue returns would be somewhere around $17 million in new revenue annually. 

To get a larger picture of our local taxes click HERE.   Below is the time frame:  

• April 6, 2022: Presentation by Mayor Hamilton to City Council
• April 13, 2022: Discussion of revenue legislation at City Council meeting
• April 20, 2022: Second reading and vote at City Council meeting

​The Mayor’s argument besides the needs is that the community has a capacity for the increase:  

• Bloomington is in the bottom 25 percent on property and LIT rates of the 20 largest Indiana cities, the lowest of the 7 contiguous counties 
• Per capita spending is 16% lower at $642 when compared to the same 20 cities
• Strong bond rating with a capacity of $18 million from the overall level of $28 million which leaves funds for future needs
  
  

The $17 million LIT Investment

• Public Safety $4.5 million
• Climate Change $6.345 million 
• Essential City Services $2.5 million
• Equity and Quality of Life $3.65 million

 
General Obligation Bond Projects:

• Parks Bond
• Public Works

To get further detail, Mayor Hamilton has put up a website with Frequently Asked Questions, Video Address, and a Feedback opportunity.  

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