Standard & Poor’s downgraded Bloomington’s rating one notch to AA-minus and warned of further action by assigning a negative outlook. Analysts cited he city’s ongoing financial deterioration caused by a its inability to close a budget gap.

The strains are primarily due to having to dip into general funds to help support a sports coliseum, and to increasing expenditures that have outpaced revenue. This led to a negative unreserved general fund balance in 2008.

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