Peak Oil Task Force Report - City of Bloomington - State of Indiana

CITY REVENUE
As has been documented elsewhere in this Report, high gas prices have translated into
reduced demand. With demand destruction comes lower gasoline tax revenue. Indiana is
one of eight states with a gas tax in addition to the federal gas tax. 126 Revenue from the gas
tax, vehicle registration fees, and other sources are pooled and distributed to state entities
for maintenance and construction of highways and to local entities for maintenance of
roads and streets.
Like other Indiana communities, Bloomington experienced a steady decline in revenue
from these pooled “gas tax” sources from 2004‐2008. In 2004, the City received
$2,774,033 from these sources – approximately 5.92% of City revenue. In 2008, funds from
these sources totaled 2,481,648 (4.49% of total revenue) – a decrease in highway and gas‐
sourced funds of approximately $292,000.
VULNERABILITIES
When the price of gasoline begins to rise again, we can expect a further decrease in
demand. As demand decreases, we expect that this revenue source will continue to shrink.
Fuel prices will also influence the ability of the City to assess fines. Approximately 2
percent of the City’s budget relies on fines and forfeitures. As discussed above, the bulk of
these fines result from violations of the City’s parking rules. In 2008, parking citations
accounted for $749,592.32 of the $1,068,000 in fines and forfeitures. As gas prices rise
and community members increasingly walk, bike, or take public transit, it is anticipated
that parking enforcement revenue will decrease appreciably. Similarly, insofar as staff is
limited to foot or bicycle enforcement of all of its ordinances, it is expected that fines will
decrease across the board.
126 Currently, Indiana’s gas tax stands at 29.2 cents/gallon.
Report of the Bloomington Peak Oil Task Force
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