Bloomington City Council — Transcript

Tuesday, September 10, 2024

Story

Bloomington approves 9.2% tax increase for 2025 budget

Opportunity Housing Ordinance Annual Update

Hatch Bloomington Contest Winner Announcement

Votes (3)

Approval of Preliminary Tax Levy and 2025 Proposed Budget

Approved

The Council approved an 11.5% preliminary tax levy increase for 2025, leading to a 9.2% increase in taxes for a median value home. Key revenue sources include lodging and admission taxes, while permit revenues are decreasing. Major expenditure drivers are personnel costs (75% of the General Fund) and public safety (Police and Fire), with over two-thirds of the proposed budget increase allocated to these services. The preliminary levy represents the maximum amount that can be collected, with further detailed discussions planned until December, culminating in the Truth in Taxation Hearing.

Annual Update on Opportunity Housing Ordinance

Update Received

The Council received an annual update on the Opportunity Housing Ordinance, which mandates affordable units in new housing and provides incentives like density bonuses. Established in 2019, the ordinance has enabled Bloomington to add 693 new affordable units, achieving 82% of the Metropolitan Council's 2030 goal of 842 units with five years remaining. The Mayor emphasized providing 'housing that people can afford' and the need to address deeply affordable housing (50-30% AMI) and affordable home ownership in future efforts.

Hatch Bloomington Contest Winner Congratulated

Announcement of Winner

Mayor Tim Busse officially congratulated Scramblin’ Eggs, a restaurant concept by Grant Veitenheimer and Nick Peterson, for winning the first Hatch Bloomington Contest. They received a $100,000 prize to open a permanent location in Bloomington. The contest engaged 60 applicants, featured public pitches, and community voting, generating significant buzz and positive media attention, marking it as a successful program for stimulating local business and community involvement.

Notable Quotes (8)

About 75 percent of Bloomington’s General Fund budget goes to personnel costs.

Mayor Tim Busse [2:03]
Approval of Preliminary Tax Levy and 2025 Proposed Budget

For years, the Council has heard that Public Safety is the top priority of this community.

Mayor Tim Busse [2:30]
Approval of Preliminary Tax Levy and 2025 Proposed Budget

The proposed increase in the budget for 2025 is $9.2 million. More than $6 million – or two thirds of the proposed budget increase – would go to Police and Fire.

Mayor Tim Busse [3:03]
Approval of Preliminary Tax Levy and 2025 Proposed Budget

According to state law, the preliminary levy set on Monday night is the maximum amount the City can collect through property taxes for the coming year. The Council can lower that number but can’t raise it for 2025.

Mayor Tim Busse [3:23]
Approval of Preliminary Tax Levy and 2025 Proposed Budget

Back in 2019, Bloomington adopted an Opportunity Housing Ordinance focused on providing, maintaining, and encouraging housing for all people.

Mayor Tim Busse [4:16]
Annual Update on Opportunity Housing Ordinance

Each decade, the Metropolitan Council sets affordable housing goals for each community in the Twin Cities. The goal for Bloomington is to add 842 new affordable housing units by 2030. That goal was set in 2020 and since then...Bloomington had added 693 new affordable units. That’s about 82 percent of the 2030 goal and we still have five years left in the decade.

Mayor Tim Busse [4:53]
Annual Update on Opportunity Housing Ordinance

Because if someone works in Bloomington, they should be able to afford to live in Bloomington.

Mayor Tim Busse [6:57]
Annual Update on Opportunity Housing Ordinance

Personally, I think Hatch Bloomington was a huge success. Sixty applicants brought their best ideas forward. They had a chance to make their pitches publicly and got feedback and advice on their business plans.

Mayor Tim Busse [7:58]
Hatch Bloomington Contest Winner Congratulated

Ordinances & Resolutions (4)

Preliminary Tax LevyOther

Approved starting point for the city's property tax collection for the coming year, setting the maximum amount.

Proposed Budget for 2025Other

The financial plan corresponding to the preliminary tax levy, outlining projected revenues and expenditures for the upcoming fiscal year.

Opportunity Housing OrdinanceOrdinance

Local regulation adopted in 2019 requiring developers to provide affordable units in new or substantially rehabilitated multi-family housing projects.

Affordable Housing Trust FundOther

A fund used to support the creation and preservation of affordable housing units in Bloomington.

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Bloomington City Council - Bloomington Recorder