City council expected to pass budget

Bloomington Mayor John Fernandez presented his budget to the city council in mid-July, calling for a 7.7 percent increase in spending, financed through a property tax levy increase of 2.16 percent.\nCity Controller Tom Guevara said the levy increase shouldn't have much effect on the average taxpayer. He said most businesses and homeowners will realistically see no more than a 1.67 percent increase in local property taxes.\n"We've come up with a very conservative estimate based on how much money we need to raise for the budget," Guevara said. "It's set outside from the assessed value. Most people might even be looking at a flat rate."\nFernandez stressed that the property tax hike is well below the statutory maximum of five percent. Abiding by a campaign pledge, the mayor has kept property tax increases well below the statutory limit since he was first elected in 1995. \n"It's important that we manage the city and do it in a way that's fiscally responsible," Fernandez said. "We can provide services and make capital investments without raising property taxes in any significant way, allowing our economy to remain vibrant."\nIn his budget, Fernandez proposed to strengthen public safety by hiring three more firefighters, another police dispatcher and an additional police officer. He also promised a $6 million park improvements bond and more than $450,000 for sidewalk upkeep and renovation.\nThe city is also giving employees an average raise of 3.5 percent to remain competitive with the private sector and keep pace with inflation. Guevara said the city also faces unavoidable increases, such as rising energy, utilities and insurance expenses.\n"Although it is not unusual to experience significant cost increases in any one of these areas, it is unusual to experience dramatic price increases for all at the same time," Guevara said. "These expenses are unavoidable, but not necessarily unmanageable."\nAs for capital investment projects, the city plans to spend about $675,000 on alternative transportation programs, including a downtown bicycle pathway. The city will continue funding of "Transportation 2000" projects, such as widening College Mall Road and the extensive construction planned for West Third Street next year. \nGuevara said the city is also looking to establish a "Rainy Day Fund" under a new state law. The controller's office already holds $6.7 million in reserves -- roughly 30 percent of the city's general fund.\nThe city also hopes to retire a pair of high-interest bonds for recent renovations to police headquarters and public parks. While the early retirement take $750,000 of the 2002 budget, Fernandez said it will save Bloomington taxpayers nearly $150,000 by the 2003 fiscal year.\nA strong reserve, Guevara said, will improve the city's credit rating and make it eligible for lower interest rates on loans for capital projects and other expenditures. The state legislature passed the law this spring to allow municipal governments to set aside money for unforeseen contingencies.\nThe city council recently amended the mayor's proposal to include a $100,000 increase in the police department's budget. Most of the money will fund slight pay increases and overtime pay for neighborhood patrols under a Bloomington Housing and Neighborhood Development grant. The budget supplement also includes a request for about $49,000 for an extra Information Technology Services support technician.