New city budget includes $8.7M reserve

The Bloomington City Council passed the city's 2007 budget Wednesday night by a vote of 8-1.\nThe $55.6 million budget includes a 10 percent increase in the employers' share of health insurance, a 33 percent increase in the fuel budget to cover the price increases paid at the pump, contractual pay increases for firefighters, police officers and city employees and a 2.75 percent increase in the salaries of elected city officials. \nThe new budget also calls for increased retirement contributions for city employees, two new police officers, three new firefighters, a $10,000 increase in the Jack Hopkins Social Services Fund and $100,000 allocated from the city utilities department to the council's sidewalk project.\n"The 2007 budget is thinking about the future," Councilman Chris Gaal said. "This budget emphasizes public safety, affordable housing, social service funding, money for sidewalks, investment in the parks system, the Crestmont neighborhood and the alternative transportation and greenways plans."\n"Bloomington citizens can be assured that we have a very healthy financial situation in the city," Councilman Dave Rollo said.\nThe sole "no" vote came from Councilman David Sabbagh, again questioning the projected $8.7 million the city will have in reserves by the end of 2007.\n"Government is not a bank," Sabbagh said. "I contend that $8.7 million in reserve is far in excess of what we need. We have lots of things we can do with that money."\nSabbagh also voted "no" to the $26.7 million utilities budget, citing that he cannot pass a budget while an audit is in process, referring to the State Board of Accounts' audit of the city's utilities department, which is due later this month.\n"It seems to me difficult to vote on a budget when the last audit we had questioned many things about the accounting practices (of the utilities department)," Sabbagh said. "I have full confidence in the utilities workers and the rate payers. It's the financial management of the department that I'm concerned about."\nUtilities director Patrick Murphy responded by saying the Utilities Service Board approved the utilities budget and he expects a positive audit at the end of the month.\n"Clearly there is concern about the city's utilities," Murphy said, "and we are doing better."\nThe $7.8 million Bloomington Transit budget was passed unanimously.