LIT tax

Councilmember Dave Rollo proposed postponing the entire vote for a third time. He said he wanted to further reduce the 0.69-point increase with economic development funds.

Council’s conversation focused on finding additional sources of revenue. Several members took a specific interest in the 0.25 percentage point increase in the ‘public safety’ LIT in 2016.

Council directed most of its questions toward the proposed Bloomington Transit (BT) East-West express route, which would cost $2.1 million each year.

The tax hike would generate about $18 million in annual revenue for the City of Bloomington, $11.4 million for Monroe County, and $1.4 million for Ellettsville.

As it is currently written, three council members support the proposed LIT increase, one member does not, three have unanswered questions, and two were not present during the vote.

The current LIT is 1.345 percent, so the proposed rate of 2.2 percent is a 64 percent increase.

Hamilton’s memo called for $17 million in additional annual revenue from the LIT hike.

If approved by the city council, base pay for all union officers with at least one year of experience will increase by at least $7,700.