Bloomington City Council — Transcript
Tuesday, August 25, 2026
2025 HRA Audit Results
Civil Engineer Selection for St. Mark's Redevelopment
Bring It Home Project-Based Voucher Awards
Preliminary 2027 and 2028 Budgets and 2027 Levy
Policy and Project Updates
Votes (4)
HA 2025 Audit Presentation and Approval
Dissent: None
Moved by Commissioner Eay [00:15:25] · Seconded by Commissioner Hooim [00:15:30]
Andy Herring from Red Path & Company presented the results of the 2025 Bloomington HRA audit. A clean (unmodified) opinion was issued, with no findings regarding internal controls or state compliance. One federal compliance finding for the Section 8 housing choice vouchers program, a carry-forward from 2024, was noted due to incomplete tenant file checklists and some incorrect HAP payments. Staff explained that corrections were implemented in February 2025, and additional auditing and staff training are underway to prevent recurrence. The HRA and City of Bloomington received the GFOA Certificate of Achievement for Excellence in Financial Reporting for the 54th consecutive year. The HRA's fund balance increased by approximately $2.1 million.
Civil Engineer Selection for 8630 Xerxes (St. Mark's Redevelopment)
Dissent: None
Moved by Commissioner Hooim [00:22:20] · Seconded by Commissioner Robertson [00:22:25]
Staff presented the recommendation for Civil Site Group as the civil engineer for the St. Mark's redevelopment site at 8630 Xerxes. This project aims to create small-scale affordable homeownership opportunities, potentially including duplexes, triplexes, and detached townhomes. Civil Site Group's proposal was the highest scoring and lowest cost among nine applicants, demonstrating a multi-disciplinary team, experience with cell tower integration, and a history of successful projects in Bloomington. The board inquired about re-engagement with the neighborhood regarding the shift from single-family to multi-unit housing and reiterated past concerns about triplexes. The goal is to complete design for a spring 2027 construction start.
Bring It Home Project-Based Voucher Awards
Dissent: None
Moved by Commissioner Eay [00:35:10] · Seconded by Commissioner Hooim [00:35:15]
An update on the 'Bring It Home' state rental assistance program, a two-year, $2.6 million grant program, outlined internal build-out and plans for a tenant-based voucher waiting list opening in September to meet utilization goals. Benefits of project-based vouchers (PBVs) were highlighted, including deeper affordability and streamlined leasing. Only one application was received for PBVs, from Common Bond Communities for 20 units at Bloomington Family Town Homes. Staff recommended a partial award of 10 PBVs, reasoning it would ensure timely voucher issuance for already identified units, provide stability for existing Housing Choice Voucher holders, and offer internal flexibility for the remaining funds. Commissioners questioned the low number of applications and the long-term funding security, which staff addressed by explaining it's a new program with anticipated state renewal via metro sales tax.
Resolutions to Adopt Preliminary 2027 and 2028 Budgets and Preliminary 2027 Levy
Dissent: None
Moved by Commissioner Hooim [00:51:50] · Seconded by Commissioner Robertson [00:51:55]
Staff presented the preliminary 2027 and 2028 budgets (reflecting a new two-year cycle) and the preliminary 2027 levy. A significant increase in the overall budget size was explained as primarily due to the inclusion of expected grant spending (e.g., Bring It Home, Impact Fund, Met Council grants), which was not previously summarized. The HRA levy, representing 20% of the total budget, was proposed for a modest increase to $3 million for 2027 (below the maximum allowable $3.3 million), covering anticipated increases in legal fees, administrative costs (without adding new staff positions), and maintaining fund balance for future housing investments. Commissioners acknowledged the diligence of staff in leveraging grant funding and managing a small team effectively.
Notable Quotes (13)
The result once again, it's we issued an unmodified or a clean opinion on the 2025 financial statements and that's the highest level of opinion the H could receive.
So, in my opinion, there's nothing um that the commissioners need to take action on or should be overly concerned uh with that finding.
like Andy mentioned, this was an issue that we corrected in February of 2025. Um because of the the way the file testing happened this year, those files that were missing the checklist were from January.
Why the civil site group? Uh their their application was the highest scoring and the lowest cost. There are a number of things that were um really strong about this particular proposal. They have a multi-disiplinary projects team.
So I know when we originally talked about this area we had talked about single family residential and I know we did a bunch of community engagement listening and the neighbors were really excited about it. And since the decision was made to go to more of town homes, has there been re-engagement with the neighborhood?
I just want to make a comment that I know there was um board hesitation on the triplexes on the three-unit town home. So, I want to make and just keep that in mind. That was a very strong uh preference to not have those.
So this is a state rental assistance program that's modeled after the housing choice voucher program. Uh, Bloomington HA was awarded a $2.6 million two-year grant. And this is a brand new program within the state.
So the proposed award we are recommending a partial award of 10 project based vouchers to common bond at Bloomington family town homes.
it is the expectation that the state has set that this would be renewed and the funding that Bloomington receives is through the metro sales tax. So it's actually a pretty secure funding source.
So there's quite a significant jump in our overall budget amount and that is because we've included what we expect to come in from grants and so that is both incoming and outgoing. So it balances out year-over-year.
And I just think it's really important to re reiterate to the public that um this is not just like a huge increase in the budget. It's just we are now accounting for all of the grant money that comes to the HR or flows through the HR.
I think continuing to invest in staff development and training. um you know there was a lot of turnover especially around 2024 and and I think continually investing in um systems and efficiencies internal efficiencies is going to be important and is something we've thought a lot about and you know developing long-term infrastructure so that we have resources available for staff as as much as needed.
I'm also um satisfied with the fact that we're not maxing the lobby. I think you're being very diligent in that and I I like where it sits. I'm I'm very okay with um what the ask is for this year.
Ordinances & Resolutions (11)
Annual audit performed by Red Path & Company for the Bloomington HRA.
Request for Proposals issued for civil engineering services for the St. Mark's redevelopment site.
Official action to approve the civil engineer for the St. Mark's site.
Official action to award project-based vouchers under the Bring It Home program.
City of Bloomington's strategic document that the HRA's mission and budget align with.
Ordinance that informs opportunities for housing types like duplexes, triplexes, and detached townhomes.
Community Development Block Grant public service processes, which were changed to increase dollars to community-based organizations.
Official action to approve the preliminary HRA tax levy for 2027.
Official action to approve the preliminary HRA budget for 2027.
Official action to approve the preliminary HRA budget for 2028.
The city's comprehensive planning process, with initial feedback to be reported in October.