The Bloomington City Council adopted the city’s $163 million 2026 budget in a 7-2 vote Wednesday night.
But the main topic of discussion was the council’s relationship to the mayor’s administration. Two councilmembers and two public attendees said they are “lacking trust” in Mayor Kerry Thomson’s administration.
City Controller Jessica McClellan said the total budget is supported by an increase in general fund revenue from property taxes, which increased from $54 million in 2024 to $55.6 million in 2025. Property taxes from the Parks and Recreation fund were moved to the general fund, which contributed to the increase.
As of Jan. 1, 2025, Bloomington holds about $249 million in outstanding debt obligations – but McClellan said that number does not include interest rates, which would mean about $414 million in outstanding debt.
The city budget is also operating in deficit and will have spent $30 million more than it collected by the end of next year.
Councilmembers Matt Flaherty and Kate Rosenbarger voted against the budget, both saying there was a lack of transparency from the mayor’s office.
“It’s also about accountability for me,” Flaherty said. “And I think the budget is a very poor accountability mechanism, and I think without real accountability, we won’t see real change.”
During a 2025 budget proposal, several councilmembers also voiced unsatisfaction with the mayor’s proposals because some of the council’s priorities, including the safe streets project and a data study into city-wide emergency dispatch calls, were not included.
Flaherty said he believes the administration has failed to follow through on community-driven priorities and that he does not have trust in the city’s leadership.
“I no longer consistently trust what this administration tells us based on their past actions and a pattern of behavior exhibited throughout their time in office,” he said.
He said one of his biggest concerns about trust came early in the administration's term, when officials ignored bond ordinance 22-30 and appropriation ordinance 23-01. Flaherty said the ordinances appropriated nearly $30 million to be spent on public safety facilities — including the Showers West building for the new police and fire headquarters. He said the building is not being used as those ordinances intended.
The city council approved the city’s purchase of the Showers West building in 2023 with the intention of relocating the Bloomington Police Department headquarters and the fire department administrative offices there. Although the BPD headquarters fell through early in 2024, the fire department moved in.
“I don’t have enough time to go into all the many examples of where I feel like I have not been dealt with honestly,” Flaherty said.
Rosenbarger backed Flaherty’s concerns and said her trust was damaged when Thomson told the B Square Bulletin she found out about a resolution regarding changes to Bloomington’s zoning code at about the same time as the public. But Rosenbarger said the ordinances involved had been developed with city staff throughout 2024.
“There’s, like, no trust there for me,” she said. “This is just one example of a place like, all honesty, just feels blown to pieces and I do follow councilmember Flaherty in that the lack of trust is so extreme to me.”
The council approved the Bloomington Public Transportation Corporation’s 2026 budget of $19 million with a proposed tax levy of .0371. They also adopted a $23 million budget for the operation, maintenance, debt services and capital improvements of the city’s Water and Wastewater Utility Departments.
The council, as well, discussed raising elected official salaries but did not make any final conclusions.
Mayor Thomson agreed that a salary increase is necessary and suggested a 2.7% cost of living adjustment increase for council, the mayor and the clerk. But she said she would be fine without a salary increase.
“Given that we have not done that work this year, I suggest COLA is the best way to move forward, especially given the funding realities that we are facing moving forward under SEA 1,” Thomson said.
City Clerk Nicole Bolden also recommended a COLA increase parallel to civil city staff, who received a 2.7% COLA increase in the budget.
In the survey, councilmembers were asked if they thought elected officials should receive the 2.7% COLA increase, given the uncertainty around financial future considering SEA 1. Seven of the council members in their survey response said yes, but Flaherty and Isabel Piedmont-Smith said no.
The 2025 salaries set last year for elected officials of the city are:
- Mayor: $142,171.93
- Clerk: $90,000
- Council: $25,000
None of the council advocated against any salary increases and agreed on the suggested 2.7% cost of living adjustment increase during the meeting.
CORRECTION: This story has been updated to reflect the 2025 salaries for elected city officials.
