Heat. Heat. [music] Good evening everyone and welcome. I will call our Bloomington City Council meeting to order. Tonight is Monday, December 8th, 2025. Thank you to everyone joining us here in the council chambers. Thanks to everybody watching online. We will begin our meeting as we always do. If you're able, please stand, remove any head covering, and join me in the pledge of allegiance. >> I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. Once again, thanks to everybody for coming out on a snowy uh December evening. Greatly appreciate it. We will start our meeting uh with the approval of tonight's agenda. And uh council, what we have this evening on our agenda, we've got two items underneath our uh introductory items. Item 2.1 is our presentations of our 2025 Omar Bondude award. We have two award winners this evening. And then item 2.2, a proclamation on human rights day. Council member Nelson has our consent business this evening and the consent agenda is a hefty 24 items. So, Council Member Nelson will lead us through that. Uh we'll get to hearings, resolutions, and ordinances next. That's item four. And we have uh four public hearings this evening. The first item 4.1 is our public hearing on our truth and taxation 2026 property tax levy. Item 4.2 is a public hearing on our 2026 through 2035 capital improvement plan approval. That's the CIP. Item 4.3 is not a public hearing, but it is a resolution authorizing the issuance and sale of general obligation sales tax revenue bonds series 2026A. Item 4.5, we're back to a public hearing. This is a substantial amendment to the 2019 community development block grant annual action plan. And item 4.5, a public hearing on our small business codes and process phase 2 ordinance under organizational business. Item 5.1, it's a resolution to res revise compensation plan for full-time, part-time, seasonal, and temporary non-union employees for the city of Bloomington. And we will wrap up as we always do with our city council policy and issue updates. Council, any corrections uh or changes to tonight's agenda proposed? Hearing none, I would move approval of the agenda as stated. Motion and a second by Council Member Dalisandre to accept tonight's agenda. No further council discussion on this. All those in favor, please signify by saying I. >> I. >> Opposed? Motion carries. 70. First up on our agenda is the Omar Bondude presentation. And I'm going to head down to the podium. Tonight we make our presentations for our 2025 Omar Bonder Award winners. Uh the Omar B Omar Banderude Award is a Bloomington unique award recognizing outstanding human rights work within the city of Bloomington. Omar Banderude was uh I think the initial chair of the human rights commission if I recall and was a driving force of uh equality and equity and doing what's right with the city of Bloomington. Um uh it's a it's an honor to give these awards out have had the opportunity to do that for years now and to see the winners that have uh have come through this chambers. They are outstanding representatives of the city of Bloomington. They do outstanding work and we're very grateful to have them representing our community. We have two award winners tonight. >> [snorts] >> The first uh is presented to the Normandale Community College Office of Equity Inclusion in recognition of outstanding service and human rights 2025. [applause] This is actually Normandale's second Omar Banderude award. back in 2019, the general work that was going on at Normandale received a uh an Omar Banderuds Human Rights Award. Tonight, we very specifically call out and recognize and celebrate the Office of Equity Inclusion for the outstanding work that they do. I'm joined here tonight at the podium by the chair of our Human Rights Commission, Anita Smithson. She's going to have a few words and then we're going to watch a video and then we're going to call our friends from Normandale on up. >> Thank you, Mayor and City Council. Normanddale Community College Equity and Inclusion team is being honored for their long enduring work to create a college culture that is culturally culturally competent and serviceoriented. This team has been engaged in this work for I believe nine plus years and has expanded to both faculty and students, ensuring that employees at the college have the tools and training they need to show up for their students in the most authentic way to support the students growth and learning and that students are seen as their full selves and that their educators are prepared to help them succeed. Normandale Community College is a repeat honore. As the mayor said, we recognize the continued value in the work that they're doing. And within the context of 2025, it feels especially important to honor and celebrate the achievements of this team, which has led to measurable impact for both students and employees. So, congratulations to the entire team at Normandale. And we'll let the video do the rest of the speaking. >> Grant, if you could roll the video, please. >> I always say equity work is life work. Our equity inclusion team here at Normandale, we lead a lot of professional development and trainings for our campus. We really try to lean into equity-mindedness as a way of accomplishing our strategic goals here at Normandale. >> Anything we can do to support our employees to be able [music] to support our students and help all of them thrive. >> Wanting to make sure that a college could exist for everybody, not just those students who feel so ready to be there, [music] but also the students who may even question themselves of why they're there. Instead of putting the onus on the students to know all of the barriers, all of the resources [music] up front is really us as an institution saying, "Okay, what are the barriers that we see that could be present or potentially present to >> [music] >> uh limit student success and let's remove it on the front end." So when the students come in, they can be their authentic self. >> We all really believe in the value of education [music] for our students and we believe in them and the work that we're doing is really oriented around that kind of deep care for those students and a [music] desire for them to all be doing well here. And the same for our employees, right? If our employees are doing well and we can support them [music] to feel confident and included and like they belong at work, we can help them do that for our students. >> We're very fortunate to support and sponsor a few events. So, Bloomington Pride, Bloomington Junth, [music] and then we also had a partnership with the Just D's event and then I also sit on the economic development work group as well. [music] >> Part of the value of this team is just the way that we are able to work together. there's [music] a lot of trust and care for each other on this team and I really hope that that's part of what kind of ripples out into [music] the work that we're doing. >> It was like wait how did we get nominated for this? >> I remember seeing the email and being like [music] wait what what is this? Who who did this? >> You don't always get that direct feedback about what your work means to people. So just having [music] somebody value it really openly and having that be public that says sort of like this work is important. It matters to people. It mattered enough for someone to take the [music] time to nominate us. I think that's part of where that value lies for me. I think when you have this kind of award, it really shows the validation [music] of the work and the importance of the work. I want to live in a world where everybody is thriving. Like I think we're all doing better when we're all doing better. And it's not about taking anything away from anyone. It's about having everyone be able to lift each other and be able to have access to the things they need to thrive. Please welcome rep representatives of the Normale Community College Office of Equity and Inclusion. Come on up. [applause] >> Who's on the Who's on the microphone? [laughter] >> All right. Good evening, everyone. We never realized how short I was to have to pull this all the way down. Um, so my name is Corey Crowder. I'm the associate vice president of equity and inclusion and I have the the privilege of leading this team of amazing individuals uh with our focus on advancing equity-mindedness throughout the campus. Um to the commission, the mayor, um council members, um just really want to um share our sincere gratitude and appreciation for this. as um Anita kind of alluded to, the current climate around the work that we do is is being challenged, right? Is being um you know, some places dismantled and things like that. And so to have this recognition, this award um is really that that push we need when the times get tough to continue to work, to continue to fight because it it's not only uh important, but it's necessary. Um and so as Amy shared in the video, right, it's about making sure that everyone has what they need to thrive. Um and and so thank you for uh mentioning that Normandell received this award back I believe in 2015 somewhere between 2015 1917 somewhere. Um but um that work when it started out was really setting a foundation for us to have a equity inclusion team but also a foundation for the institution to lean into equity-minded work. And so take a lot of pride in being able to kind of sit back and reflect and say we're continuing that mission. we're continuing a part of that legacy that that leadership team um set forth for us. So once again, just really appreciative of the opportunity and recognition and um if you all need change maker nominations, I have two behind me. So make sure to to reach out to me. But thank you. [applause] >> Now we need to do the grip and grip This is yours. [applause] Our [clears throat] second winner of a 2025 Omar Banderoot Human Rights Award presented by the city of Bloomington is Yunodos Minnesota. Give them a round of applause. >> [applause] >> What I think is very cool about this award, obviously recognizing the outstanding work of I think the second largest school in the Minnesota State system and the the longtime history that they've had here in the city of Bloomington, but also celebrating the work of a a small grassroots startup organization that looking to empower people, give them voice, and give them strength in our community. So it's a uh uh a wonderful combination a juxosition I think that shows what we value and how how we value this in the city of Bloomington. Anita, thank you again mayor and council. Um Unidos Minnesota is being honored for their contributions to advancing and protecting the human rights of motans. UniOS has been on the forefront of many issues involving working families, especially immigrant families, including advocating for and educating the community on the driver's license for all law. Most pressing right now and so incredibly timely tonight, is the work that Unidos is doing to educate community members regarding their legal constitutional rights within the context of federal ICE raids that have been occurring in Minnesota, even right here in Bloomington. Unidos has trained thousands of people, I would imagine, in just the last month alone, to ensure they know their rights and the rights of their community members and how to effectively document an immigration raid. At this time in American history where we see community members abducted off our streets with a lack of due process and a lack of accountability, Unidos Minnesota is on the front lines helping to keep communities safe and helping us all understand our rights and constitutional freedoms. And I'm so deeply grateful for their work. >> [applause] >> And it we now have a video. >> Unitos Minnesota is a grassroots movement powered by immigrant communities. We're organizing to transform the conditions we live in. We are building a Minnesota where community members set the agenda. We organize for long-term structural change. We do collective action leads [music] to real results that improve people's lives. And our work is about dignity, power, and belonging because our communities [music] deserve not to just survive, but to thrive. Unidos has been proud to work hand in hand with Bloomington residents and city leaders to make sure local policies truly reflect the voices and the needs of immigrant families. Earlier this year, for example, we led a know your rights training that gave families the tools and confidence to stand for themselves and their neighbors. With that work, we will trust and strengthen [music] our bonds and reminds families that they belong here. with dignity and respect. Together, we're helping shape a city where every family has the opportunity to thrive and feel safe, calling Bloomington home. This award recognizes [music] the leadership, the courage, and the power immigrant communities who are organizing [music] for a better future. It's also a reminder that what happens when [music] people come together and stand up for each other and lead with faith and love and it [music] shines a light on and the incredible contributions of those who are too often overlooking public spaces. It's a public affirmation that immigrant families belong here in Bloomington much of a time when immigrants communities are under attack across the country and it shows that community led change [music] is something that we can celebrate not just here. This award reflects what is possible when our community leads with courage, with unity, and hope. And Minnesota will continue uh fighting for a Bloomington and a Minnesota where every [music] family can thrive, belong, and build a brighter future together. Please welcome now. Yes. [applause] Please repres please please welcome now representatives unidos Minnesota please. >> Thank you so much. >> Thank you everyone. Thanks for having us here tonight. We appreciate you. Thank you so much. Uh again, good evening everyone. I wrote a speech because I'm not as good as Corey, so I had to write it down so I can remember everything. Uh my name is Danielle Del Toro and I'm truly honored to be here tonight on behalf of Onidos Minnesota, a grassroots organization built by and for immigrant communities who are transforming the conditions we live in. At Onidas, we believe that the power of the people, we believe that in the power of the people, we believe that often we believe that when community members come together, when we set our own agenda, and when we organize for long-term and structural change, real results follow. Our mission is simple but powerful to build a Minnesota where every family can live with dignity, safety, and opportunity. We do this by organizing, by lifting up voices that too often uh have been left out and by reminding each other that we are the strongest when we stand together. Over the years, Unidos has been proud to partner with the city of Bloomington at at its residents. Together, we work to make sure that policies uh the city policies reflect the voices, values, and experiences of immigrant families who h who call this community their home. Early this years, we left uh know your rights trainings to help families understand uh and protect what's theirs, their safety, their rights, and their dignity. That work build trust and strengths relationship between neighbors. And it reminds us that every person, no matter where they come from, what language they speak or how long they live here, deserves to belong, to contribute, and to thrive in Bloomington. When we learned that Onidos has been honored with the Omar Bondo award, we felt proud not just for ourselves but for for thousands of people whose courage and commitment to make this work possible every day. This award recognizes the leadership and strength of organized immigrant communities is a reminder of what can happen when people come together, stand up for each other and lead with love. It also sends a light in in on many contributions of those who often go unrecognized in public spaces. The workers, the parents, the students, the elders whose everyday acts of care and courage keep our communities strong. This recognition is really meaningful. It tell immigrant families, we all belong here. It sends a message that in Bloomington, diversity is not just welcome, it's celebrated and it matters, especially in a time when immigrant communities across the country uh continue to face fear, division, and attacks. Tonight, this award stands as a promise that our city will not turn away, but instead move forward with compassion, unity, and courage. [snorts] Minnesota. We know that our fight is far from over. But this moment, this recognition reminds us of what's possible when our community leads with heart and purpose. We accept this award with gratitude and a renew commitment to keep organizing, to keep to keep building power, and to keep creating a city and a Minnesota where every single family can thrive. Thank you all so much for being here tonight. >> [applause] >> Thank you. [applause] >> I I think one really quickly can we do a big picture with all of you? >> The commissioners. >> Thank you. >> Yep. >> I think uh probably over here because of the size of us large group. Thank you. Thank you. Size of our group. Do we need to move more? Never mind. Never mind. Thank you very much. >> Congratulations to our winners. Thank you so much. And thanks to our human rights commission members for their work uh tonight and and throughout the year here in Bloomington. Did anybody else wonder what those things those guys were using was Oh, they were cameras. I just It's a don't see those anymore. Item 2.2 on our agenda. Uh directly related in a lot of ways. It's a proclamation for Human Rights Day December 10th, 2025. Uh I think Blaine Kelly is here. Is Blaine here? There he is. Come on up. Join me while I read the proclamation. Then I'll turn the mic over to you. Okay. Sounds good. >> Sounds good. >> Proclamation for Human Rights Day, December 10th, 2025. Whereas the city of Bloomington joins nations in the world in recognizing December 10th, 2025 as Human Rights Day. And whereas through this year's theme of human rights, our everyday essentials, we're reminded that human rights are the fundamentals that unite us all. They begin with the small everyday choice to treat others with respect. And they depend on collective action to build a culture of dignity and fairness across our community. And whereas Bloomington recognizes the importance of celebrating and acknowledging the diversity that exists in our community as we strive for autonomous participation in our community affairs. And whereas the Bloomington Human Rights Commission has demonstrated its commitment to human rights through initiatives and advocacy for causes including disability employment, fair housing, and period poverty awareness. And whereas the Universal Declaration of Human Rights asserts all human beings are born free and equal in human dignity and individual liberty. And whereas the designation of a special human rights day serves to remind us that basic human rights must be made available to all people. And whereas through the efforts and commitment of our city in promoting human rights awareness, our goal is to advance the inaliable rights of all residents by eliminating human rights abuses and injustices. And whereas the city of Bloomington Human Rights Commission is celebrating 57 years of aiding and advising the city council in ensuring all citizens have equal opportunities. And whereas the city of Bloomington recommits its goal of protecting and advancing the human rights of all. Now therefore, I, Mayor Tim Busy, do hereby proclaim December 10th, 2025 as Human Rights Day, and ask all residents to continue their efforts in making Bloomington a model for fair and equal rights for all people. Dated this 10th day, this 8th day of December, 2025. Uh, Blaine Kelly is the outreach program manager for Oasis for Youth. Thank you for being with us this evening. I'm going to turn the mic over to you. >> All right, folks. Let's give it up again for the mayor, please. [applause] Good evening everyone. My name is Blaine Kelly and as a resident who lives and works in Bloomington, it makes me proud to hear our mayor speak to the values that my neighbors, colleagues, and I hold. As members of this community, honoring our shared humanity is a vital part of continuing to assure that Bloomington is a place we're happy to call home. Combining the sentiments from the proclamation with valu-driven actions from our city staff, council, and residents can keep us all united in our commitments to human rights. Holding steadfast to these everyday essentials is of paramount importance as we strive towards a city with a mission of cultivating and enduring a remarkable community where people want to be. As articulated across the core values of Bloomington strategic plan, there is a call for us to hold a shared responsibility if we want this community to continue thriving. And why wouldn't we? This is where we live, work, learn, grow, where we share meals, and raise our families. We come from a wide variety of backgrounds, but we share so many of the same experiences here. And we each have the right to experience those joys, those dignities safely and securely. And when we treat one another with respect and dignity, we're able to make those rights a reality. And honestly, I think that's pretty awesome. I mean, think about it. In a world where the challenges we face can at times feel overwhelming, there's something empowering that arises when we're reminded that we have the opportunity to shape the communities that we live in through our everyday interactions with one another. It's not always easy. In fact, there's times that it'll take bravery and resilience. But fortunately here in Bloomington, our community is filled with individuals and organizations who are fueled by missions and commitments to ensuring our human rights. In my professional capacity, I serve as the outreach program manager at Oasis for Youth. We had the honor of being the 2021 Boundary Human Rights Awardies. For the past 15 years, Oasis for Youth has served young people 16 to 24 experiencing housing instability and related issues right here in Bloomington with a four program approach that includes our flagship drop-in center, school and community outreach, Mall of America Employment Partnership, and Scattered Sight Housing Program. We've been honored to continue to tr contribute to the mission and vision of this beautiful city. We're immensely proud of the work we do each day and are deeply committed to continuing our efforts for years to come. As past attend as past awardees, we're excited that tonight we see the welcoming of both Unidos Minnesota and Normandell's equity and inclusion office onto the list of recipients. The accomplishments of these organizations speak boldly to their commitments to ensure that Bloomington is a community where human rights can thrive. On behalf of the entire staff for Oasis for Youth, thank you for inviting us to be a part of this evening. Congrats to the new recipients and happy human rights day to everyone. [applause] Thank you. Congrats. [applause] No, we're going to go home. >> As people clear, we will move on with our agenda. Next up is our consent business. Council member Nelson has our consent agenda tonight. Council member Nelson. >> Yeah. Thank you, Mayor. I um have one hold item 3.23. 23. Don't see anything else. So, I will move approval of 3.1 through 3.22 and 3.24. >> Second. >> Motion by council member Nelson, second by council member Mua to accept tonight's consent business as stated. No further council discussion on this. All those in favor, please signify by saying I. >> I. >> Opposed? Motion carries 70. >> Uh, item 3.23. >> I will uh turn that over to council member Reebas. Council member Rivas. >> Yeah. I just have some questions and comments in regards to it. Um um as last meeting that we had that the we mentioned the H8, I requested a information on how and where the funds were being spent. I I still haven't received yet that yet. So I was looking forward to get that and and have a better idea on how we are spending the funds. Um to the best of my of my recollection um I believe that is you know what we're trying to get for the H. Uh and and I am in no way whatsoever I want to make this clear oppose the the fact that there are some people out there that have the need to get funds from the HA and to an extent the people that actually do need those funds. I agree that we if we have the funds we should provide the the assistance. However, I am still curious. I want to see exactly where we're spending those funds. I know we get a substantial amount of funds from the federal government, from the state, from the county, and on top of that, we're also requesting, I believe is a little over $2.5 million from the city uh um levy. So again uh what I'm requesting is a detailed information on where that money is being spent, how it's being spent and who are the people that getting the assistance to that to to that uh amount of uh funds that you know to again I have requested it and I never got it. So I want to make it a point tonight uh that I still want to see that information. Um, I believe the residents have the right to know whether their funds are being spent in a way that benefits everyone. And so, um, if if there is anything that can be provided before we vote on this, I I know it's at the last minute, but I was hoping that that information was put in my hands before uh this evening. So, um that said, um you know, again, I am in no opposition of is uh you know, people getting assistance from the city, but I do want to know exactly where those funds are going, if I may. >> Thank you, Council Member Rivas. Uh I just saw in an email a breakdown of what the the different programs involved uh in the HR and I just thought I thought it came across today but perhaps I misremembering or didn't did not see it correctly and I don't know if there was a specific cost breakdowns but it did break down the different programs. >> Um if I may please um what I want to see is a a itemized breakdown of the funds. uh the programs don't tell the public or myself enough information to know where the funds [clears throat] are going. So what I would like to see is an itemized uh of expenses and how is being spent and what is the benefit that is bringing to the neighbors or to the residents of the city. Uh that's my point. I I do see the breakdown um um but it doesn't really give me the information that I was looking for. So that's all I want and I you know and I think it's only fair for the residents to actually see that where their tax money is going rather than just having a program. This is where we spend this and that. >> Yeah. So >> and and that that certainly exists because the H obviously has approved this budget and it it is broken down uh for the H. So that that information is there and I think I would turn to staff and say uh if we could get this to council member Reebos and perhaps we could just hold this uh item over until our next council meeting if that would be accepted. >> Yeah, I again it's just you know like I said I don't oppose it. I just want to make sure that I get that information the residents are aware of it where where it's going, how it's being spent. >> Council member Dellesandro and then council member Mua. Council member Disandro. >> Thank you Mr. Mayor. I I know that on starting on page 105 of tonight's packet, it is publicly available to all information. So, I can show you that if you'd like, but but it it's literally a program broken down by account code. It's that specific. So, I'm not sure what else we could offer. I I personally am satisfied that I know where each of these things are going based on this information where we've got things like loan service fees, rents, fraud recovery, insurance proceeds, subsidized rents. I mean each one of these things is very well spelled out. More to the point though and the thing I was going to recommend is the human rights commission or sorry the HA the housing res development authority has its public meetings every month as well. And the next one is tomorrow. So it's possible that anybody including members of the public who'd like to know things can go to those meetings and ask for questions. But maybe um I know we have representatives of the H on council but um council member Rivas could also attend that meeting tomorrow and get a lot of questions answered as well. >> Council member Mut. Thank you, mayor. And I would just say, um, we've been having these budget meetings on the HR for just about as long as city council has been having these conversations as well. So, I'd be happy to have staff or I will personally send you those links so you can watch them as well because we've had four or five different meetings on the budget specifically that calls out these items that you're specifically asking for. Um, and so nothing's being hidden. Everything's in public. We've had those those conversations for you, too. >> Mr. Mayor, if I may, I just it's it's, you know, it's not the information is not for me. I have access to the information that you both have and and on this particular time it wasn't perhaps because I asked during the meeting it wasn't sent to me but if I request anything from the staff they usually give me the information as well but I didn't request it because I asked for it at the last meeting that we discussed the H what I am saying is I have access to that and I understand it to a certain extent however the public doesn't have the understanding that we have because they are not part of our discussions They what I want to present them is something that itemizes where is going and how it's being spent. A program doesn't tell the public or even myself where it goes. I have an idea where it goes, but it doesn't specify to me where the funds are being spent. And that's what I'm looking for. Again, I don't oppose it. What I'm saying is that all that information should be available for us to look at it and for the public as well. >> Thank you. >> Thank you, Council Member. What I'm going to ask staff to do, uh, I'm going to make a motion that we lay item 3.23 over until our next agenda until our next, uh, meeting. Uh, and I would like to direct staff to, uh, to print out, uh, pages 97 to 109 in our council packet this evening and get them directly to Council Member Reeva so he has them and can share them with anybody who might have questions because that is a detailed breakdown. I mean, that's a line by line of the budget, but it's also a a summary breakdown of the different programs. Uh, so it explains the programming, but there's also the dollar amounts as to and you'll have that I bet before the end of the meeting that will be in your inbox and you'll be able to share it. And as I said, let's move this I I will move that we lay this over until our next council meeting and at that time >> second >> motion and a second to lay over item 3.23 to our next council meeting. Any further discussion on this? All those in favor, please signify by saying I. I. >> Opposed? >> No. >> Motion carries 61 with council member Dalisando in opposition. That will complete our consent business. C. Thank you, Council Member Nelson and Council Member Revas for bringing that forward. And we will move on to item four, our hearings, resolutions, and ordinances. Our first public hearing of the evening is uh I think the the big show for everybody tonight. It is item 4.1, our truth and taxation hearing. This is our 2026 property tax levy. Our budget manager, Kari Carlson, will lead us through a presentation and then we will get to the public hearing. Good evening, mayor and councel. Tonight, I will present information for the truth and taxation public hearing in support of the proposed 2026 property tax levy and budget. And joining me in the council chamber chambers is city assessor Tim Bulier, who can answer questions about assessed values, homesteads, and the state's property tax refund program. and the senior deferral program. He will also be available in the lobby to assist with individual property valuation questions. And uh before I get started here, I'll say the city budget before you that I'm going to present reflects more than $1.7 million in reductions from the proposed um proposal used for the preliminary tax statements as well as a $500,000 reduction in the H levy that was in the proposed tax statements. As I shared two weeks ago, this slide shows how the 2026 tax levy has moved through the process this year. We began with a conceptual increase of 17.92% which reflected the full cost pressures across the city before any reductions were made. By the time the preliminary levy was adopted in September, we had brought that down to 9.44%. Since then, we have continued to refine the budget and make reductions. And the proposed levy before you tonight is 7.48% increase. And for the median value home, a 7.48% tax levy increase would translate to an increase of about $257 a week, $11.14 a month, or about $133.60 a year for the median value house. So, the agenda for this evening, I'll give a brief uh review of the 2026 budget process, summarize the public feedback we received, re revisit the preliminary levy adopted in September, and walk through the adjustments that reduce the levy from 9.44%. To the proposed 7.48%. I will then present the updated levy and general fund request for 2026 and close with some information about property tax refund and deferment programs. After the presentation, uh the mayor will then open the public hearing and then we will then turn to the council for direction ahead of the of you setting the final levy on December 15th. So just again as a quick recap of this 2026 budget process, we began in April through July with priority based budgeting work, refining budgets, meeting with departments, and looking over requests. On August 18th, the council reviewed the conceptual levy and budget with an opportunity for public comment. The preliminary levy of 9.44% was set on September 8th, followed by a priority based budgeting update later that month. In October, departments presented their budgets to council, and on November 17th, we held the utility rate public hearing, and those budgets were approved. November 24th included another uh levy and budget discussion and an opportunity uh for public comment. And that brings us to tonight with the truth and taxation hearing ahead of the final levy and adoption as I said on December 15th. Uh so I went into this a lot more detail a couple weeks ago, but um just as a reminder, the public engagement we carried out uh for the 2026 budget, we received a feedback in a variety of ways that are on the slide. The National Community Survey showed strong satisfaction with public safety, police and fire, and public works services like water and snow remov snow removal. We also gathered input through the Let's Talk Bloomington budget page along with phone calls and emails from residents. And we heard uh public comment at the August 18th and the November 24th 4th council meetings. We did include um the public comments in the let's talk Bloomington report to date in the November 24th council agenda packet and there's an updated let's talk report in this evening's packet. We will provide another one uh next week for the December 15th as well. And then also throughout the summer we hosted some budget information tables at community events um reaching residents across the community. And I always like to advertise that we continue to upload presentations, slides, reports, and council videos to the city's budget web page so that the budget information is easy to find. It's in one place. The page also includes links to that Let's Talk Bloomington survey and budget books from prior years. And then also um to highlight that more than half of the overall budget increase is tied to public safety. So for fire, the transition to a combination staffing model continues with a long-term plan to reach 78 full-time and 75 part-time firefighters and upgrade all six fire stations for full-time coverage. The safer grant that funded 18 firefighters um the first safer grant we received that end that will end in early next year. And the American Rescue Plan funds for the three fire battalion chiefs is going to end this year as well. So those ongoing costs um are going to shift to the levy. We are using some money from the fire pension reserve fund to kind of help bring that in, but that but that is having an impact. Um on the police side, the one-time state uh public safety aid that we were very pleased to receive um a couple a few years ago that supported several added positions and able to overfill um some officers. Um that is some of that is also being absorbed into the general fund budget as well. So those items do make a significant share of the increase in the 2026 budget. As a reminder, on September 8th, the council set the preliminary 2026 city levy at 96.2 million, and that was a 9.44% increase from 2025. And this reflects um only the city levy and does not include the separate HR or port authority levies. Again, um the Minnesota Department of Revenue released statewide preliminary city levies for 2026. So totaling just over four billion dollars. It was an 8.7% increase from last year. So just this just provides some context and shows that many cities are facing similar cost pressures in their budget as Bloomington is going into 2026. So to bring down from our preliminary 9.44% to the proposed 7.48% 48%. Staff identified about $1.7 million in reductions and also in some revenue adjustments. So that includes lower debt service expense, some uh lower paid on call firefighter costs, increased fire state aid revenue, higher permit revenue, and reductions identified through priority based budgeting. So together those total about $1.72 million, which is bringing it down to that 7.48%. And then the overall chart is showing the 2025 tax levy on the left and the 2026 on um next to that. And then as you can see the majority of what's driving the increase in the tax levy is within the general fund. So this slide has a lot of numbers. I'm just going to talk you through it. Um so the slide shows the combined 2026 tax levy for the city, the HR, and the port authority. And as you know, the HA and the port are separate taxing jurisdictions from the city of Bloomington. Um, they're not part of the city portion of the property tax statement. Instead, they appear at the very bottom of our prop our proposed property statements in the section that's labeled other special taxing districts. But there had been a request earlier from the council earlier this year in meetings just to show the impact of all three of these together. So, we did that a couple weeks ago and I have that here tonight as well. And uh when all three are combined, where we're at now is the overall levy. Um the updated proposed increase is an overall increase of 8.42%. And so those numbers in black, some of them are crossed out, are the preliminary levies, and that was is what is going into the uh proposed property tax statements that households received in November. Um so in total those preliminary levies across the city h and port reflected a 10.86% increase and so the where we are tonight the updated proposal lowers that by 2.44 percentage points so which is a reduction of about 2.2 million. This is the preliminary general fund budget showing both total revenues and expenditures. You can see property t taxes make up 67% of general fund revenues. Uh followed by the lodging the local lodging and admission taxes. Um that's about 9% of our revenues. And then on the expenditure side, public safety accounts for nearly half of the general fund budget with police at almost $41 million and fire just under that or fire u the next highest at 17 million. These next two pie charts will show the revenues and expenses broken down visually. So starting with revenues here you can see that property taxes that's the blue there dark blue make up the majority of our revenues. There's also other important sources as I said lodging and admission taxes permit licing licensing fees as well as grant revenues. And then on the expense side, the public safety is the largest portion there in dark blue and um for police and then orange for fire. So police and fire make together about nearly half the expenses. The rest is spread across services like public works, parks and recreation, community development, and general government functions. So not all of these expenses are funded by property taxes. As we saw on the previous slide, grants and other revenues um also help support these services along with property taxes. So, I want to take the opportunity to um in response to concerns just about rising property taxes and the need for senior tax relief. These next three slides highlight the state of Minnesota's property tax refund program. Homeowners and renters may qualify for a refund based on their income and the amount of property taxes paid. So, for more information, residents can visit the Minnesota Department of Revenue website or call the phone numbers listed, can also always call our um assessing office here at the city. There are two types of refunds available through the state of Minnesota's M1 PR property tax refund form. The regular property tax refund is based on the relationship between your property taxes and your total household income. The special property tax refund applies when taxes increase by at least 12% and at least $100. Forms are due August 15th, but they can be filed up to one year late. To qualify for either refund, the property must be homesteaded, though, which is very important. And then the senior property tax deferral program limits annual property taxes to 3% of the previous year's income with the remaining amount deferred until the property is sold or the deferral ends. To qualify, applicants must be at least 65 years old and if they're married, have a spouse who is at least 62, have household income under 96,000, and have lived in and homesteaded the property for at least 5 years. interest accrews um up to 5% and again the Bloomington City Assessor's Office is available to help residents with questions about this program. And so uh with that um come to the time for the public hearing um so mayor after you open the public hearing truth and taxation um I would just like to begin with I acknowledging one written public testimony into the public record. So when we start off I will just say that um announce that one and then I'll step back. >> Very good. Thank you council. Any questions of Miss Carlson before we get into the public hearing? >> Council member Lman. >> Just one question. I just wanted to just confirm what the major driver was for this year's increase. >> Yes. Mayor, council members, council member Lman. Definitely the major driver is our increase in the public safety in both police and fire. Um, and with some of the revenues that we had had that are sunsetting next year with some federal grants and some state revenue as well, >> nearly 47% or [snorts] >> additional questions, council. >> All right, we will open the public hearing. Uh, I will open the public hearing at item 4.1. And just uh to let everybody know how we're going to do this. First of all, everybody's welcome to speak. And what we were going to ask of you is a couple of things. First of all, to sign up. We've got the sign-in sheet on the desk there. Uh you can sign in before you speak. So we could even hand that kind of through the crowd. Whoever wants to, you know, get in line and speak, uh that that would be fine. Let's we can be efficient with that. Everybody is going to have five minutes. And you'll see that on the shot clock on the wall. We have five minutes. And when we get to five minutes, I will cut you off. Not because I'm mean, but because everybody's going to get the same amount of time. So we're going to make sure that the five minutes are adhered to. and uh we will we will stick to that. Uh if you ask specific questions, what we're going to do is take the questions down and we'll answer them at the end of the public hearing. Rather than trying to answer them uh you know shooting from the hip, we'll we'll take the questions down and answer them all at the end of the public hearing. And what did I forget? And everybody gets one bite at the apple. I think that's uh that's the other piece of it as well. and and we we uh uh also I'd appreciate it if we could keep this as uh we can keep this process just respecting the the council of chambers and and the process that we're going through here. Uh in particular, uh somebody may say something you like. Somebody may say something you don't like. We ask that you don't clap. We ask that you don't boo. Just acknowledge that other people might have a different opinion of your than yours or might have the same opinion. But we're just going to we're going to respect the process. We're going to respect the council chambers and we're going to let that go. So, if we could all do that, that would be great. I've opened the public hearing. Miss Carlson, you've got a uh a letter you want to read into the to the record for us. >> I want to note for the record that the city has received written testimony from Hank Glover. A copy has been provided to the city council and it will be formally included in the public record following tonight's meeting. >> Very good. Thank you. >> Our public hearing is open. Anyone like to speak? Hello. >> Good evening and welcome. >> Thank you. My name is Frank Low and I've been here almost 28 years in Bloomington. [snorts] Um, my taxes have gone up between three and 6% over the last five years. I am going to pay more than 10% this year. It almost seems like you guys are trying to get me out. the older I get, you know, the taxes are going up and more and more. So, I'm, you know, I'm a few years away from retirement and these taxes sound like they're not they're coming from a city that isn't well um managed. And so, I've got great concern about that. And I understand all the things that um the miss said about how our taxes I want to pay taxes. I understand taxes are a good thing. I especially love our new police chief. I think he's doing a great job. I'll give him a raise. So, um, but it's just too much and somebody's got to look at that. And so, I'm going to give up my time for the next person and hopefully we'll get enough responses so that you guys can take that back and figure something that's going to work for the residents of the city. Thank you. >> Thank you, Mr. Low. Did Did we get you to sign in, Mr. Low? If you could just grab that and sign in and then hand it to whoever's coming up next or we'll be behind you. >> All right, it seems we are having clock problems and so it's okay. Yeah, it means I can go on for >> You go for days. You go for days. And >> can I take people's time? Is that okay? >> So, we'll have we'll have Elizabeth as timekeeper and she'll she'll let you give you a 30 second warning. How about that? >> Whatever works, Mr. Mayor. >> Yep. Mayor, City Council, uh John Hoop, a resident since 1992. Um I'm not really here to talk numbers anymore because I don't think it really matters. I've come here plenty of times and beat my head against the wall many, many times. Um 7.8% is still too much. Inflation is 3%. But I am here to put up a challenge to this council. [clears throat] Two challenges actually. Um, as most of us that pay attention know, this council, taking the mayor out, is a 5 to1 council. Six to one when you include the mayor. Um, we know where you guys lean. We know where you guys come from. And we know that there is a big [snorts] tilt to those six of you versus the one of the other one. Maybe it's time that that part of the council realizes that maybe outside your tribe, whatever you want to call it, there are others that have ideas that are valid and are good for the city. And I don't think that that six listens to the other side. The one that thinks the other way doesn't have much power on this council. I think if you guys can't make it to the voting booths next November, stop by. I can fill the forms out for you because I'm sure I can predict exactly how you guys will vote because I know how you guys vote on the city council and I don't think you seek information and feedback from the city from people that don't agree with you with the six. I don't go to the Junth festival. I don't go to the pride parade. Not because I'm against them. I don't attend those things. I hardly go to the farmers market. But that seems to be the places that you go to to get all your opinions. It's because it works for you guys. You get the opinions you want. You don't get the opinions from people that say different things. I've yet to come here at any truth and taxation somebody go, "Thanks for raising it 7.8%. Thanks for raising 9%. I'm so glad to be paying 12%, 10%, 18% more. Let's keep spending. Never heard that." And I think you need to listen to that more than you do. My other challenge tonight to this whole city council is we're in a public hearing. So, we come up, we get put on the record, we put our names down, we say our piece. And I think that when the last person speaks tonight and no one else is coming up, that's normally when this council closes the public meeting and we sit back there quiet as j as m as church mice and listen to each and every single one of you sit on your bully pulpit and tell us how we don't understand and how we've got everything wrong. I don't think that's right. I think your comments should be part of the public record and be part of the public hearing. And I also, even though Mr. Mayor, you said you only get one bite of the apple, I think it's unfair to this to the residents that come here and this city that we come up here and we give you feedback. You shut us off, you feedback us, and we don't get any response to that. None. There's been council meetings when I've heard you, Mr. Mayor, say, "I can't tell you how many times we've had one firefighter in a firet truck." No way for anyone to come up and say, "How many times when did it last happen? How many times have we seen it happen?" But you get a bully pulpit and you get to tell us that. Last meeting, Council Member Carter, you said, "Well, I think we're supposed to hold some money. We can't just spend the $300 million we have, but what's the number? What? It's not fair for me to come up and make those statement and then you shut us down and then say, "Well, we can't do that because we're required to do something." Well, what's the requirement? Tell us what it is. Council member Lman, you know, you talk about like you act as though we're attacking the finance people in this that run that are part of the city. Nobody nobody's ever said anything bad about the finance people. I just think it's bad that you say we started at 18% and we're doing such a great job to get to 7.48. I don't think that's a good job. A lot of people don't think the economy is very good. Some people think it's better than others, but here we are piling on to more people in this town. And you guys got to stop. I would like to see you guys get on the record. Keep the public hearing going. And those of us that came up and spoke, give us three minutes to respond back to you when you start getting on your bully pulpit versus shutting it down, making your statements, and running away from the rest of us without any accountability for us. Thank you. >> Thank you, Mr. Hmaker. >> Next up, anybody? Hi, >> good evening. >> My name is Shelley Carries and I've been a resident in Bloomington for 35 years and I've owned my own house for 20 and I have to say I'm a single mom. I work full-time. I do all of what I need to do and my property taxes are 14.6% increase. [snorts] I mean, I'm a widow. I'm doing everything I should do. And when I look at this, it's not even what the levy is. The levy is what, 10.84 and I'm 14.6. Why? My question, why? Why such a huge increase? I did a spreadsheet for all the years that we owned our house. And my question to you is, how did you come up with the calculation? That's what I want to know. I mean, I understand it's going to police and fire, and I love that, too. I also love Kotage. I've heard many things about him. I haven't met him, but um I love that. That's great. But how did you get to these numbers? That's what I want to know. So, I don't have anything majorly negative, but this increase is huge. 14.6. I don't know how you got to my number, but I feel like the calculation is wrong. So, that's all I have to say. >> Thank you. when we uh we'll connect you with a staff member who can our city assessor can lead you through the steps how that number basically we don't pull it out of the air it comes from a formula >> okay I tried calling but whoever answered the phone didn't know the calculation and how it worked >> so I thought well maybe I'll just come here and see if I can find out >> we will connect you with with a staff member others >> [snorts] >> Good evening. My name is Jeff Johnson. I'm a homeowner here in Bloomington and I would like to talk about uh my uh property proposed property tax for 2026. It's going to be going up $41048 from 2025 to 2026. To me, that is an an exorbitant amount for one year's time for a property tax increase. $410 from one year to the next. That should take years for that kind of an increase, you know, at least a few years for that kind of an increase. Uh, I can say this. When I bought my house 10 years ago, the property tax was about $2,000. Now it's going up to $4,535. That's 2500, you know. uh royal I mean that's a huge increase you know for 10 years time you know it's a more than double increase [snorts] I am now retired and I have a fixed income and my income is not you know Henipin County said my property tax will go up 10% okay Well, I calculated it and it is approximately 10%. I can tell you my income will not be going up 10% in 2026. No way. It's going to go up. My social security payment will go up 2.8%. So, you know, I'd like to know how the county and the city expect people like me that are retired to keep up with all these increases. increases every everything is going up, you know, and if you're on, you know, more or less a fixed income, how are we supposed to keep up with all of these increases, especially these huge property tax increases? $410 from 2025 to 2026. That's $410 that I can't spend on groceries or utilities or clothing or household items. You know, that's money I can't spend on those necessities. Well, I could say more, but I'm not going to because I think I've made my point pretty well, so [snorts] I've signed in. So, I'll leave it to someone else here to speak their piece. >> Thank you, Mr. Johnson. Can I get the overhead? >> Uh, yes you can. And you can sign in. How about signing in after you're done? >> Grant, could we get the overhead camera, please? Right here. I'm right on the logo. move this. >> Yep. >> Okay. >> So, uh uh my name is Andy Thu, uh 54 year resident of Bloomington, lifelong resident. Um so, first off, I had a chance to look into the Henipin County, uh website tax statements, and I'm just I want to the speakers that I heard behind me had a 14% a 10% a 12% increase in taxes. Mine on the statement is 9%. I'm looking at uh Jenna Carter uh 3.8 the lowest, Dwayne Lman at 6.9, Moa Choa at 5.5, and Tim Busy at 7%. And the homework that I've done, the people behind [clears throat] me seem like they have a considerably higher amount of taxes according to the Henipin County websites. Um, I've heard that we're going to make an adjustment on the the cola, the cost of living adjustment at a $1.1 million reduction. Um, so I'd like to see that. People behind me again um are not seeing a large wage increase. So the city employees cost of living adjustment at 0%. You know, I'd like to see that there. The other thing is I hear that the city employees are going to get steps in their wage increases. There was a study that went out that actually increased the the the wages of the of the city workers too. So we can actually hold the line as a state worker. I've been I've had like five six years before where my wages have been froze, right? So that that can happen. Um the other thing is uh start with a in the budgets in the various departments start with a budget that's similar to last year and then find out if you can actually hold the line. We've done that in our state budgeting too. we've held the line in our in our various budgets. Um eliminate the financial waste by digging into each department and look at cost efficient ways to actually trim budgets or to save money. I did talk about this during the listening session, but um a lot of our residents drive outside the city for gas because of the controlled prices by the gas companies, but we do lose a sizable amount of taxes. I believe uh those convenience stores could sell pop or other things. It would actually So, we need to somehow lobby and get our convenience stores and the city council on board with better gas prices to keep our residents here to actually spend the money here in the city. We lose a large amount of revenue because of the gas prices although moving people out. I understand we're going to tear down the fire station on 96 in Nicollet. Um that's one of the newer fire stations I think was built back in '95 or 96. Maybe we could actually repurpose or remodel that one and keep it and not spend the big money to repurpose that. Um, how about create a businessfriendly environment? I've been here for 54 years. Auto automotive teacher. We've we've lost a number of businesses to neighboring communities because of our taxes and our our lack of what I call businessfriendly um um atmospheres for our businesses to thrive in. Um, organized trash collection. We got it every other year. Pickup. It seems that we get less services in our trash collection than we ever have and the rates have gone up. So, I'm proposing that we bring the move it back to private haulers, you know, in in our in our community. Um, cut 5% from each budget, um, each division across the city. I think that we can cut 5% out of budgets and actually live with it and actually save save our taxes. Um, big one here, cut diversity, equity, and inclusion department. I think we spent about $500,000 on our [clears throat] diversity, equity, and inclusion um department alone. So, I think there's ways that we can trim and I'm looking at the new city manager. Um you got to get busy in these departments, right? Because what I'm hearing and I know people in this city, right? We've got departments that instead of fixing a tool or a piece or a part, what we're doing is we're throwing stuff away, right? And we're not our trucks our are our our stuff in the trucks stuff is just like a free checkbook right for the for for for the for the departments right so there needs to be more management within the departments to actually keep track of tools materials and the expenditures in the in the in the city department. So the new city manager I'm going to really request you go around to those city departments and start cleaning house. It needs to happen. So I just want to thank you. I don't want to come up here and kind of kind of land base to everybody. 7.48 is too much. You guys need to lower it. Thank you. Thank you, Mr. Tool. >> Hi, Chad Dolly. Uh, resident since 2002. I have a spreadsheet too if we could get the overhead. >> We'll turn the overhead back on. Mr. Dolly, if I could ask if you could get into the microphone so we can make sure that you're >> Sure. been a resident since 2002 and uh my property tax increase was 7.8%. I'm not going to say whether that's high or low or indifferent. I know there's a lot of us that are faced with much more. Um what I'm trying to understand is the market values and how they were determined this year. I took a survey of the houses around me on Xerxes Avenue. They're all approximately the same age. One's a little bit older. Two of them had a $9,000 increase. The oldest house built in 1939 have $49 $4,900 market value increase. And then my house was 2,200 increase. And the building value decreased on two of them, increased on one of them, and then the land value is all over the place. It increased or excuse me, the land value was consistent. It went up, but the building value. So, in the end, you have two market value decreases and two increases. I emailed the assessor's office, talked to Jennifer Bloomers, and she said it's all due to the depreciation tables. I don't know what that means exactly or how the math works out. So, I just like to get some explanation on that. The second spreadsheet I put together was my house versus the house directly in back of me. Traditionally, I was told that the houses on Xerxes because it's a busier street were valued lower. This year, the values are converging. So, traditionally, Washford Avenue had a higher value. this year. My house and the house on Washburn are exactly the same same value. So, those are the questions I have. >> Very good. What I will do is uh as as we talked uh with Miss Kerry earlier, we're going to get you we're going to connect you with our city assessor. He's here. Tim Bulier is his name. Be more than happy to go through that with you and he can explain it. And I mean it's it's a process and it's not it's not an easy one, but it is a process and he can let you he can lead you through it step by step. >> Sounds good. Thank you. >> Yep. >> Others Good evening. >> Good evening. Welcome. My name is Matt Frederick. I'm uh own a commercial building here in Bloomington. Uh operate a commercial business as well. We employ 12 employees and run about in between six to eight temps as well. Uh in 2022, our property and our let me go back a second and say our our building is it's not the Taj Mahal. It's literally a warehouse. 73,000 square feet. Not huge. I think it was built in the early 70s. In 2022, our property taxes were 127,000. I know taxes are important, okay? I am all for spending on quality things that make sense. In 2023, it went up to 130,000, a 3.5% increase. Sign me up. You know, rate of inflation critical. 2024 it went up to 152,000, a 15% increase. Then in 2025 it went up 14%. Just in case we're not keeping track, we're at 174,000. In 2026 with the proposed nearly 8%, we're at 187,000. That's a $60,000 increase in four years. As a small business, that's untenable. I will tell you, we actually have a search committee out looking at other locations outside of the city. Breaks my heart. I want to grow here. I want to I want to employ here. But you can't keep doing this. That's $15,000 a month for a basic building. And you know, my hopes are that you step back and think about how taxes impact you in probably a much smaller way. But how would you feel if I said, "Open up your wallet. I need $20 today." And then next year I said, "I need 40." And the year after that I said, "I need 2,000." You'd start to go, "Hey, hang on a second. Um, we got to pump the brakes here now. It's hard to make choices. You run a business, you have budgets. We live by budgets. We do them every October, right? And we review them quarterly and we live by them. And we make tough choices. And the one thing I want to encourage you to do is to think to yourself, what is a want and what is a need? And sometimes you don't always get what you want. And that's the truth. Think about us businesses and the impact you're making and the compounding math of doubledigit increases yearover-year are not sustainable and will end up driving us off a cliff. That's it. Thank you. >> Thank you, Mr. Frederick. others. I'm Michelle Reynolds and I live on 83rd in Queen. And um I have a question for you guys is how much money is given away to NOS's that city of Bloomington gives away. Um, I know that Ramsey gave away $39 million in NOS's and if I'm just assuming, you know, I called um Henman County and asked them how much is sent is given away to NOS's and they said that they would um in 10 days get back to me and I heard nothing. And somebody that I know said it took them two months to find out how much um Henman County gave away NOS's and it was 38.9 38.4 million was given away and the list of NOS's that was given to the majority of them had nothing to do with houses or properties. Um, and I don't think that it's right. If us paying our property taxes are having a hard time staying in our houses because we can't afford our property taxes, why is the city and county giving away all this money to other community or organizations that need it? But we're not saying, "Hey, it's okay. You can give our money away when we don't even have it to give away. you know, make sense. So, I would like to know how much is given away to NOS's and how much that affects our property taxes. I bought I've lived in Bloomington my whole entire life. Born and raised, graduated from Jefferson, been here my whole life. This last house that I'm living in, I bought in 2012 and I bought for 181,000 and it's been appraised at 485,000 and I have done nothing to my house. And when I bought the house, I could afford it at 181 and my taxes were like $2,400. Um, now my taxes are 6,489, which, you know, I think is pretty ridiculous. I have a real estate agent friend and I said, "Can you pull some comps, you know, within a half mile from my house?" And I got one that's like three houses down from me, 8336 pen just sold for 303,000. Um there's 8236 pen or queen on my block again sold for 370,000. Uh another one on queen sold for 390,000. So why is mine, you know, these are, you know, both three bedrooms, two baths. Why is mine at 485,000? Oh, but wait, wait, wait, wait. It went down. It went down. Mine went down to 400 and 51,000, but my taxes went up more. They went up. So, the property in my house is going down. Why am I paying more in taxes? In 2021, my house was appraised at 350,000 and my taxes were 4,400. And 2023, it was appraised at 336,000 and my taxes went up to 6,200. In 2024, it stayed the same value. Um, but my taxes went up to 6,324. Um, in 25 it went down to 451 and it's at 6,489. I forgot my paper in the car about what my 2026 taxes were going to be, but I knew that it's not right and that's why I'm here. I just don't have the exact numbers for you. So, um, I'm wondering why my house got jetted up so high when everybody else on my block is still, you know, in the 300,000s. Why is mine almost 500? I haven't done anything to it except for plant some hostas or, you know, and landscaping doesn't make your house go up either. So, something is wrong with that. And with your guys' budget, I you know, I really need to know like how much is given away in the NGO's cuz seeing what like Waltz is doing, giving away everything away to everybody else when it's not helping us that live here and we're the ones paying the bill. So that's my deal. >> Thank you, Miss Reynolds. What we're going to do is again I will connect you with Tim Bulier, our assessor, who might be able to shed some light as to why the disparity on on your block. And when you say NOS's, we're talking non-government organizations. Correct. >> Correct. >> Okay. Um, and nonprofits, that kind of thing, or >> Right. >> Okay. >> So, like if if Ramsey gives away uh 38 million. >> I I I can promise you we're nowhere near $38 million. >> But you guys are giving away something. >> We we support VEP. We support other nonprofits in the community. Yes. >> Can I get a list of that of everything you've given out? We will we will provide that for you. >> Thank you. >> Yep. [snorts] >> Others wishing to speak. >> Good evening, mayor and council members. My name is Jonathan Minkx. Residents across Bloomington are tightening their budgets. We're adjusting to higher costs for groceries, utilities, and insurance, and housing. So, it's fair to ask, what is the city of Bloomington doing to tighten their own budget? We've shifted to priority based budgeting, but from a resident's perspective, we're not seeing actual reductions. Budgeting doesn't mean much if every program remains a priority. and spending continues to climb without meaningful cuts or consolidation. Other levels of government are actively identifying waste, fraud, and duplicate services. Yet here in Bloomington, we continue to operate redundant functions such as our local sick and safe leave department. Despite Minnesota already enforcing the same regulations statewide, redundancy is expensive. And I don't know any residents here who are excited to pay more for something the state already provides. We also maintain a $750,000 annual placemarking budget and recently approved a $80,000 statute. Art and place marking have value, but during high inflation, residents reasonably question whether now is the right time for additional aesthetic spending. instead of focusing on cost-saving measures. On top of that, I heard that the ice garden renovation ran over by $300,000 for chillers. That was an overrun not clearly communicated to the public. When taxpayer dollars are involved, transparency is not an is not optional. It's essential. Residents deserve full details on where money is being spent and how it's being spent and why costs exceed expectations. Another major concern is our continued reliance on consultants. Even as we hire more city staff, we are paying employees and paying outside firms to perform overlapping work. Consultants have their place but they should not be a default solution when we have internal capacity. So the real question is what programs have been reduced? What departments have been streamlined? What consultants have been cut? What efficiencies have been identified? Because from the outside, residents see increased spending, increased hiring, and increased outsourcing, not reductions. In closing, Bloomington can do better. Transparency can be better. And residents deserve a city government that trims costs the same way families must every day. Thank you. >> Thank you, Mr. Ms. Anyone else? My name is Jim Schulander and um I'm not a financial wizard or anything, but I notice on your charts you had your different uh areas of spending and revenues and whatnot. I understand what police, fire department, parks, those things are. And I would presume that we're providing a good service at a reasonable price. I don't know that for sure, but I did notice there's one item up there. Community development was 10% of the budget. I have no idea what community development is. I think our community is mostly developed, but I guess I would ask what that is. And I guess one of the things I heard is we like a breakdown in just what that involves and what the costs are because that's 10% of our budget. I haven't clue what it is. So I ask, >> what is it? Community development is uh basically what Mr. Thu was talking about, making this a more businessfriendly community and trying to attract businesses to the city of Bloomington. That's why we have a port authority. That's why we've got uh uh the work that we're doing to attract and retain businesses. That's why we're working on uh workforce development. That's what community development is. >> It's economic development, basically. Good evening. >> My name is Doug Graham. I've been a resident here since 1989. Um I'm not as eloquent as some of the other fine residents are citizens of Bloomington. And I got to keep reminding myself that I'm one of those people that I'm a citizen of Bloomington, citizen of Minnesota, citizen of the United States. Um, when I bought my home here, my taxes were $800 a year. I tell people that now. They laugh at me, think I'm nuts. I When I bought my house, we were the lowest tax in the state, fourth largest population, but the lowest tax back then. We shoed for garbage. water was uh paid uh once every three months. You go to the grocery store, you could afford things. Um I raised my daughter here. My daughter went to Jefferson and uh uh and now I'm a grandpa, two beautiful grandkids, and unfortunately I can't bribe my daughter enough to move back here to Bloomington because it cost so much. My daughter played sports here, very successful. She's one of the only state champion softball teams from the Bloomington uh BAA. pretty proud of her, but I can't convince her to come back here. Um, I live over by France and old Shakipi Road and and uh I can remember nights going to to uh to Andy's Tap for supper when you could still take your kids, you know, to a get a hamburger over at the local pub where people weren't, you know, worried about things so much. And I also watched the city do imminent domain to that area and take over all of the property and then was because a business was going to buy a big chunk of it and they were going to build a little mall over there. And well in [clears throat] 2009 there was a different plan of what the city was going to do because the builders backed up because there was a pretty big hit to the economy to just life in general. the housing bubble, right? Um, somehow we still found a way to increase the taxes then here in city of Bloomington. Um, like I say, I started out uh paid $800 a year for taxes and today my taxes for my home are about $4,600. And our garbage service now is every two months. And every time I turn around, somebody's trying to nickel and dime me a little bit more to pay a little bit more. My water's now a two-month budget. And it's also combined with my garbage. I don't know where those ideas came. The idea that there's too many trucks driving down the street during garbage day or any day of the week just doesn't hold water to me. Um, you I get it. We want to attract the best. Like I say, attracted me. The taxes were reasonable. My neighbors were all uh somewhat involved. To be honest, like I say, I'm not as eloquent as my my fellow Bloomingtonites here and I don't have much written down, but I couldn't sit at home and not not come and see this again because again, you're asking me for more money and I'm watching down the street here where you're tearing down the creekide building which has been there forever. I get it. But is now really the time to build a hundred million dollar building? Is this now really the time? Especially when I want you to do imminent domain and to talk and took out a bunch of businesses so that you can build some project there. And then when the market all fell apart, we found a way to back that up and say, "Whoa, whoa, wait a minute." And then Walgreens put us together and instead of getting the spot where they wanted, they got us for pennies on the dollar and put it where they wanted. Now, fortunately, we've been able to put some more businesses over there, and they interchange pretty much. I think now the the the new uh well, there's not necessarily new, but I think it's uh it's a bar restaurant now, which I got to tell you, the first year that they were open and they're playing live music there was kind of a eye openener for a little quiet area over there. Um, you know, I'm trying to stay involved and as and as much as I've thought I needed to be because I like to think that when we vote for you that you're looking out for those interests of mine. That's what you're here for. That you're here to watch my money that I'm not that I shouldn't need to watch it. But it's when I hear what you're spending it on, I just have to ask myself, I'm all for fairness. I'm all for helping a guy up. I mean, heck, I've had affirmative action ever since I can remember. I don't think that's the kind of help that's needed. >> Mr. Graham? >> Yes. >> We're at time now. So, but thank you for your comments. >> Thanks. Others wishing to speak. >> Yeah. My name is Dan Ro. Been a resident of Bloomington since 1978. >> I'm sorry, Dan. I missed your last name. >> Ro. Rel. >> Thanks. >> Been a resident since 1978. And this year, our taxes are going up a little over 11%. What I'd like to see is each one of your departments reduce theirs by 2% on their budget and see where we're at. I've worked in business before and I understand how budgets go and I like to see someone something put towards that and see what you can come up with because things are getting way out of line here. We can't be going at this pace for 2027, 2028, 2029. There's no way things can keep going on that pace. That's all I have to say. Thank you. [snorts] >> I have a a quick question. I don't need to go to the podium, I don't think, but what makes Bloomington think that we need another product center when we have one on Why do we need two of them? >> Thanks. Well, we'll answer I'll take that. We'll write that down. We'll add that to your questions. We'll answer the questions when we when we wrap up the wrap up the public hearing. Anybody else like to speak? I'll introduce myself, but you probably know me well. This is my third time I've spoke um um about the budget. Um so I would just like to say um that um if any of you city council members wish to chide the residents again like you did last year for coming tonight um you can hold those um especially for me since this is my third time. Um and also none of you know who of these uh residents have attended the popup um tables at the public events. Uh additionally, residents do not have their hard numbers until Henipin County mails their property tax statements. Many of your home values went down. We've seen the We've seen the statements. Well, many of those went up. Uh my second comment, um the HR planned on a nearly 68% increase in their levy for 2026. Um they did reduce it by 500,000 uh a 16% decrease overall. Um which was just a measly 49%. Um yeah, you threw us taxpayers a bone. How would how do you believe a board of directors would respond to a CEO or VP of finance presenting that kind of budget increase? What about a business owner who had a finance manager asking for a 49% budget increase after picking themselves up off the floor from laughing? They would present those finance managers with a cardboard box and ask them to promptly exit the premises. I also noted in the budget uh slide um presentation that they had one that was um when the budget was with the port authority and then that was separated out. That slide showed where they want to be in the future, which is the same as when they were together with the port authority. It was a very steep curve and it was it's going to be 50% over many years to get up to that same budget you had with the port authority. Uh H um I also learned owns 41 homes mostly in the east, far east, and central areas of the city. Those are the most affordable entry-level homes. The city has taken these homes off the market which raises the value um for current current homeowners. Yes. But when you're so concerned about housing affordability and they then make it more expensive for families to move in and purchase their f first home. This is not common sense policy. Not only this, but I will reiterate previously mentioned concerns by our seniors about losing their homes. Where will you expect them to live when they lose their homes? Number three, I've heard quite a few comments during the budget presentations regarding the unknown effects of the federal budget. You need to look closer to home. Uh the projections for the 2029 bienium is almost a $3 billion budget deficit. Um so you want to take a look at what monies you're expecting from the state because they're probably not going to be there. We've also that um learned that at least 1 billion in fraudulent payments was stolen from us from state pro uh state programs and now 10 plus Medicare programs being investigated with estimates of being between 8 and 4.5 billion more in fraudulent payments. Money we will never get back. They can recoup some of it, but a lot of it's gone overseas and we'll never see that money again. That is gone. Bloomington school enrollment is down. Minnesota residents are leaving the state at a faster rate than we're gaining them. We lost 47,000 some. And contrary to um most of the time we hear, oh, it's just the elderly moving to um warmer climates. That's not true. The largest segment that left Minnesota was between 55 and 65. They are taking their wealth and their business out of the state. And of course, we're all concerned about public safety. Um, but it was irresponsible to hire all those firefighters without a plan to fund them except for on the backs of taxpayers. Thank you. >> Thank you. Anyone else? Good evening. Oh jeez. I'm used to [clears throat] doing public address at hockey games, so I sometimes speak a little louder than I need to. I'm Darren Anderson. Uh I've been a resident for about 21 years, so it makes me kind of a newbie compared to some of the uh prior speakers. Um several of the themes have already been been spoken about. Um from a personal s I'm very blessed and fortunate. That being said, my property tax have gone up 45% in the last 5 years. My wages flat. So with the increase of health care premiums and everything else, I am way below water in the fi in 5 years. Like I say, I'm still very fortunate, but I don't like my balance sheet and what my budget looks like. Um some of the things that were spoken of Mr. MS and others spoke about there's a difference between want and needs. Everything in the government cannot be a top priority. I think the priority is well everybody gets a base but the priority ones get more. I haven't looked but it says I'd be surprised if any any regulatory body commission program has ever gone away in 1015 years. That doesn't happen in government. Once it's in, it's there forever and it continues to grow. Government's the only sector that's grown since co. Government keeps exploding in size and that's at the backs of every other taxpayer. Everybody else we have to make sacrifices. I don't I have no guarantee of any pay increase. And yet government always gets it, but it's always at the expense of everybody else. Not saying that people aren't entitled to it, but when it's coming out of my pocket, I get nothing and I have to fund everything else. I have a bit of an issue with that. Um, with regards to public safety, everybody's obviously for that. I understand the need. You know, we were very fortunate to go for years to have an all volunteer force. I talked to people, they're shocked that a city this size still had an all volunteer force up until a few years ago. Um, it's still kind of mindboggling when you think about it. Um, when they rolled that out and it's like, well, I get it. I mean, response times were dropping, stuff like that. Great. We got a grant for 3 years. Then what? Well, this this increase in the budget was known 3 years ago. Did we really do anything to anticipate it? It's still going to grow the next few years. What about all the other programs were spent from the state in this recent bianium? All this we got all this money. Let's start these programs. It's good for the current bianium. When that 2-year period expires, are those programs going to go away? No. Taxes are going to go up to continue to support that stuff. When the government, the Fed or the state gives you free money, it's not free. When when that expires for that shortterm duration, it falls on the taxpayers. And as you've you've heard from several, it just is not sustainable. So obviously there are a lot of things in work, but it's like that's the type of things you we just have to consider. Everything's not a priority. We have to tighten belts. It doesn't seem that that ever happens at the government level. The only time that happens, you hear about it at federal, they'll just stop hiring, which will all else being equal, cause the slow of growth in spending, but it doesn't really decrease it. We don't see that happening in Bloomington. Everything just keeps going up. So, I just wanted to reiterate some of those um facts, and I thank you for your time. Thank you. >> Thank you, Mr. Anderson. Anyone else? leaving >> Jim Foster and I've I've been in front of this body many many times under when u Jean Winstead was the the mayor. Um I've listened to all the speakers tonight and um I don't want to be redundant but I think I'll probably be the the worst buzzkill of the whole night. Um I've been here 35 years. Um, and the increases are are similar. I'm I'm playing almost 6,000. Um, it's just gone up exponentially. Uh, I know you guys are in charge of the finances of the city and it's it's a very complicated process and and I appreciate I had thought of running for the council under Jean many times, but I was too busy with careers and being a risk manager and a an adjuster for 35 years and I've had budgets of over 350 million. So, I understand the complexity that you're all faced with. It's difficult. You're all individuals. You all have lives. And uh and uh it's not an easy job. All these people are wonderful citizens of this city. So are you. But I I think there is a point where you can't get everything all the time. And I think you guys I'm not going to say that you live in a bubble because that's not fair either. But we all tend to when you're working with bigger numbers over and over for many years, it it seems like it's a a natural trajectory that happens. And the city of Bloomington is a great place to live. We all know that. It's lovely. We know that Henipin County takes what 17% of the budget right out of you. So there there's 17%. And that's not much you can do. That's Henipin County and you can stand in front of the Hannipan County Commission too and I've done that. It's you guys are docel compared to them. But you know what I'm talking about. But I think everybody has a legitimate some of the business owners. I mean, uh, I almost fell off my chair when I was one of the gentlemen was talking about, um, you know, 15,000 a month or something. You know, it's a business, obviously. So, but I mean, all of you have to be you're you're you're responsible people. You wouldn't be here if you weren't. And it's people appreciate oversight. And and I I had one suggestion at one time just to have an over an oversight committee that works with you, not hammering you, but you know, trying to, you know, maybe interject ideas. I know you have forums all the time and people need to show up more often. That's that's on on the on the citizens. They need to show up more. But uh I think the increases have been you know exponentially I know I'm app we appreciate going down from 17.92 to to 9.4 then now it's 7 48 or something. Well those are still I when I said it at the beginning of a buzzkill I'm just going to move out of the state. I literally and I I've been on both parties for many years. So, I I've seen it both. And uh people are going to be moving out of this state, out of this city uh in the next 5 years. Wow. It's going to be a scary scary time here for Bloomington. And you just can't hammering all these lovely citizens. You can't just always well, we'll just get it out of the the homeowner. and and and I I I realize you have to you have a judiciary um responsibility and it's it's difficult. So I'm appreciative of that that you can do that. But listening to these citizens is one thing. Reacting to the citizens is another thing. And I think um everybody in government is like that. Um, you you you go in with the beautiful intentions, but you need to really hear what people are saying cuz people are there. I'm getting older, too. I mean, I can I can retire. I'm in a situation where I can do that. But a lot of people, you know, they're stuck here and they need they have their jobs, their careers. I'm retired. So, but I I think uh I wanted to keep a balanced discussion here a little bit. These these all these suggestions are fabulous, but you know there's a there's a tension and you guys hear it every week. So, I mean I applaud you for that. But really hear what these people are saying. They are very smart citizens in this city. Extremely smart. I I think um >> Mr. Foster. >> So that's you're my representative. [laughter] I've called you. >> Mr. Foster, we're at time now. >> Okay. >> Thank you. >> We're timed out. But thank you for your consideration of all these ideas. Anyone else? >> I'd like to um we we we're letting people speak who who have not spoken yet. Uh we'll we'll we'll address the questions that you brought up. We will do that. But we >> we'll we'll see if anybody else needs to speak here. Would anyone else like to speak? >> Hello, Mayor and City Council. Uh my name is Robert Coleman. I've lived here since 2008. Um and I do agree with some sentiments that the situation that we are in is unsustainable. I wholeheartedly believe that um I think that there's not a lot of recognition that there is like a greater problem. Um we are facing in our city a uh a need to for regrowth for replacing roads for replacing buildings and a lot of that costs a lot of money right like you guys are going to talk about the capital investment plan later today and we all like you guys have seen the modeling for the fire department about what it's going to take to bring it up to the services that we need for our city. Uh you guys know that bonding for all these projects that we are undergoing, it's going to stay on the books for many years, 10 15 years. I should have looked it up. Um but I it doesn't seem like anybody really has a plan on how we're going to tackle that. And I do not uh and like a lot of people, I don't believe that looking at the spending is necessarily the question right now. A lot of people are very happy with the services that you guys provide. And I as a taxpayer, I would be mortified if you guys were to like zero out the cost of living adjustment. Like I want to make sure that the people who provide the services to to us are paid what they deserve to be paid. And I think that and it seems that like for all of these costs that we need to pay for um like that money has to come from somewhere. And the people in this room mainly say that they don't want to pay for it. And okay. Um, it kind of we kind of have to talk about what that really means. And I know that you guys have heard me talk about this kinds of things a lot, but the way that the city was developed originally is financially unsustainable because they didn't look forward to these regrowth periods where a bunch of themes need replacing. And can I get the overhead? So, if we go back to basics, right? >> Um, there we go. Thank you. >> Yep. Uh this is uh so Urban 3 is a uh consulting firm that does a lot of uh digging into municipal finances to find out where um on when cities are facing these kinds of instabilities. And you can see that through what they analyzed in 2019 that single family residential uh losses money because it costs more to provide those services than the amount of money that is brought in. And back in the day in the 70s, you would only build these two. Uh and at those times, the ratios were sustainable for many years. And I think that we're really seeing the culmination of decades of saying that, hey, what we have in the city is good enough uh on for decades of saying we're going to protect property values, which means making housing more expensive, and then we're shocked that housing is expensive now. So the way that you fix that is you need to replace some of this stuff with the higher stuff. If you don't do that, then the people here are going to come and not be happy because they're not being, you know, this subsidy is still there, but they're not seeing it as much as they used to. But I think that obviously you can make this less of an issue, right? Like Pen Lake City Homes, I think that's a f fantastic project that should be legalized in R1 citywide. That's the kind of thing that you can generate more revenue per acre. Oh, this is per acre. Sorry. Um, and it is it is cost of providing services um the the amount brought in minus the cost of doing services per acre. And so I've talked about uh quite a few things this year uh in terms of our redevelopment districts. Um, right? like there has been a lot of redevelopment in Bloomington in scattered spots, but in our main redevelopment districts, we have seen a very little movement. Um, if we talk about uh and obviously these are the the things that are going to be able to subsidize everybody in this room more. Uh, if we were to look at four places, four sites in the city of Bloomington, um, first of all is the remote airport parking uh, locations, the two of them. Um um Park and Fly generates $45,000 in property tax revenue split between the city, county, and state uh and school board uh per acre. And Park and Go is a little less. If those two lots were generating $352,000 per acre, which is Indigo right across the street, then that is a net difference of $7.5 million in property tax revenue. and we're spending the money to provide the services for those bigger uh for those bigger buildings. We're the fire stations, um the roads, we're all spending that money already, but because we're not seeing these redevelopments happen, the money isn't coming in to pay for them. And when you >> We're at time. Sorry. [snorts] >> Thanks, >> Priyanka. I understand we have someone on the phone. Mayor, we have one person online. Caller with phone number starting with 952564. You are now unmuted. >> Did you wish to speak? >> Mayor and C mayor and council members, my name is Sharon Billings. I was there earlier tonight, but I had to come home and I just thought I'd give a call in. Uh I just wanted to say a lot of the things that uh Mr. Pullman just said uh really resonate with me. I think he has a lot of great ideas and I applaud him for uh bringing his charts in and sharing his ideas. I simply wanted to call in and I'll be very brief. I just wanted to say that in my personal experience I think that people who are satisfied with how things are tend not to speak up. Um and I know I'm not the only one who is satisfied with the way things are. And so I felt compelled to call you tonight and speak up and say just that. For my background, my family moved to Bloomington in 1959. I live in the same house today. So, I've been a a Bloomington resident for almost all my life. Now, I'm retired and I live on social security and my retirement savings. Um, I just checked my tax statement and my taxes went up 7.7% this year. And I just simply want to say I think you're all doing a great job. I'm so proud to call Bloomington my home. It's such a lovely city and I'm happy to pay my fair share of taxes to support the the work that the the city does and all the amenities that we enjoy here. Um I love calling Bloomington my home and you're all doing a great job. And again, I just don't think I'm the only one who feels that way. Um so I just wanted to call and represent the people who are happy with the way things are. And that's all I've got to say. Um kudos to you all for all your hard work. Thanks for letting me speak and you all have a great evening. >> Thank you, Miss Billings. Anyone else looking to speak tonight? >> Can I come up now? >> No, we I I I laid out the the rules at the start. We're we're giving folks one bite per apple. And despite Mr. Hemaker's uh suggestion, I think we're going to stick with that tonight because I don't want to change midstream. All right. >> Well, I'm going to I think I have an idea to help put money in your pocket. >> Uh we'll we'll have a conversation afterward. Okay. Thank you. to let her speak. >> Yeah. I didn't take out my full five minutes before. >> Then if if we let one person speak, then everybody's going to speak twice and we're all going to be here till 4 in the morning. >> That's fine. >> That's fine. >> No, it's really not. That's not how you make good public policy. >> Pocket. I have a great idea. That's going to put money in the pocket and it's going to generate thousands of dollars. >> Thank you. We'll we'll have a conversation later. Thank you. >> I think stupid that Highland Hills is sitting there empty >> all summer with three concerts. >> Highland Hills is owned by Three Rivers Park District, not by the city of Bloomington. >> Well, can't you guys merge into something? >> It's not owned by the city of Bloomington. It's owned by a separate entity. >> Last call for anybody wishing to speak. >> Step on up, please. See here. Is there a Doesn't matter which microphone I take it. >> That one's perfect right there. >> Okay. Hi. Uh John Peters, Bloomington residence since 2007. Uh my wife and I live over by uh Dread Scott. So, uh, I'm sure a lot of this has been said already, but I'm I'm mostly here to talk to you about math. Okay. So, my property value, uh, according to the city went up by 1.8%. Uh, Henipin County taxes went up by 7.3. Obviously, you guys don't have a lot to do with that, but my, uh, city of Bloomington taxes went up by 8.3%. Uh, obviously, that's a significant disparity. Um, we're already taxed enough here and uh I wonder about the uh wisdom of what the city chooses to spend its money on. For example, there's a fiscal disparity tax. I don't know what the heck that is. I also like to know what you guys spend on your equity department and so forth. Um, and also a million-doll bathroom that really didn't need to be built. So, uh, taxes went up, like I said, 8.3% of my property, but my value only went up by 1.8%. So, I would think that typically those numbers would be in line with one another. Uh, and they're not. The impression I get from the city council and the city government in general is that you guys, uh, kind of want to be Minneapolis. Well, people are leaving Minneapolis because they're being taxed to death. So perhaps take some of that into account and have a little more respect for the taxpayer. Thank you. >> Thank you, Mr. Peters. Anyone else? >> Anyone else on the phone? Pianca, >> mayor, we do not have anyone online. Last call. Council, we've got no one on the phone, no one coming forward in the chambers. I would look for a motion to close the public hearing on item 4.1 this year. >> Mayor, I'll move second. >> Motion by council member Reebos or council member Nelson. Which one was it? Nelson. Council. Council member Nelson. Second by council member Lman. Closing the public hearing. Council member Reeas with the motion. >> Any further discussion on this council? No. If not, all in favor, please signify by saying I. >> I. >> Opposed. Motion carries 70. >> Some quick answers to some of the questions and I might look to staff to to help on a couple of these uh questions. Um I mean the specific questions and and we heard a lot of a lot of input and I I do appreciate that. The uh I I think we could it might we might go with Mr. Bulier. the the the number of questions we had about the very the variety of increases. I think uh I think just in in terms of how the tax system generally works in terms of the uh assessed values the the shifts between commercial, industrial and residential and so on. Uh why why do does the 7.48 not necessarily equate to a 7.48% increase on a tax bill? >> Yeah, Mr. Mayor, council members. So the the calculations Kari showed on her slides reference the median value home and so the median value did increase between the two years. So that bakes in at roughly 1% growth between years along with that and alternatively um as different bases of our tax base grow at different rates then the taxes spread out. So last year residential grew at a higher rate than commercial and industrial did. So, some of that tax base shifted to the residential side of it. Any other specific questions? Council member Moore. >> Thank you, Mayor. Um, can you talk about the changes to the Homestead Exclusion Act? I feel like since that got enacted, my expectations, predictions of property values have shifted so much since it came down from the state. >> Sure. Um, Council Member Moa, uh, Mayor Council. So the homestead market value exclusion used to be capped at 413,800. So as your value approached that amount, the amount of exclusion you received decreases. That that changed last year up to 517,200. And so the amount of homes receiving an exclusion increased. Um, so that inevitably we have this band of homes, right, that that are valued between 413 and 517, roughly 5,000 homes that now receive a homestead exclusion that they previously didn't. And so that wiped off some of the tax base from those homes, which now gets spread out amongst the rest of the city. Questions of Mr. Buler. Council member Nelson. >> Yeah, just one quick specific thing. Mr. Peters had mentioned fiscal disparities, but that doesn't apply to residential properties. Is that accurate? So, I was confused as to how he had fiscal disparities tax on his statement. >> Yeah. Council Nelson, mayor, council. Um, yeah, fiscal disparities is a commercialbased sharing pool in the the region here. And so, yeah, that would only impact commercial and industrial properties. >> Okay. Maybe if you have a chance to check with him after the meeting um to go through that. >> Yeah, be happy to. >> Thank you. Any other questions of Mr. Bulier? >> All right. Thank you, Mr. Bulier. >> Yep. >> Uh a couple of the other questions that came up. Uh we we will get an answer to you about the the NOS's because I don't know that we can pull that together very quickly, but we'll get that that answer to you. You uh M. Mrs. Reynolds, you also asked the question about two aquatic centers. I I assume you're talking about the family aquatic center, the outdoor pool, and then the proposed indoor aquatic center at the uh uh the community health and wellness center. It was uh it was proposed as part of a community health and wellness center and whether or not uh people wanted that as an indoor recreation option all year long and it was approved by Bloomington voters. So, um I mean your question of do we need two aquatic centers? We heard voters say that they wanted two aquatic centers. They wanted the outdoor and the indoor. So that's that's part of the new community health and wellness center. >> How many people voted on it? >> I don't >> that was uh two years ago when it was a pretty big uh citywide referendum on local option sales tax and whether or not we would fund and build three different projects. Improvements at Bloomington Ice Garden, uh improvements at down in the Nine Mile Creek area, and to build a new community health and wellness center. Uh Mr. Minkx talked about cost overruns at big. I'd be curious to hear if that is actually the case because we did not hear anything about that and um we would have to check on that one um and and see what the specifics were on that. Uh Mr. MS also referenced the increased hiring and of course the increased hiring we we have seen a headcount increase over the past couple of years and that is basically our new firefighters and it's um I I think every other uh every other position within the city I believe we have the same headcount that increased staffing that we have and the increased staffing cost is our new firefighters to to fund and to staff our full-time fire department. So that's what that is. Uh Mr. Dr. Schulander, we talked about what is community development. Uh I mentioned economic development. That's certainly the case, but it's also inspections. It's environmental health. It's a variety of different things basically to make sure that the uh the the community uh both the economic development, but also neighborhoods, buildings, uh new buildings, existing buildings, that they they meet the standards of the codes of the of the city of Bloomington. Mr. Graham mentioned eminent domain, and I don't know that we've had any discussions at all about eminent domain on any project, have we? Uh, [snorts] not since I have been here in October, mayor. >> No, I I do not recall any discussion about eminent domain at all. Um, uh, Miss Bigen asked about the HRA homes. Uh, appreciate the the thought process on that because yes, you can assume that they might be coming out of the, uh, the public stock. Uh, I think one other way of looking at it is uh, those homes that yes, are primarily on the east side. So basically, they're your neighbors, people living in your neighborhood. Uh when those homes, uh a good number of those 41, it's not inconceivable to think that if they had not been bought by the HR, they probably would have been bought up by an investment company like Black Rockck and they'd be they'd be rental in income right now for for larger organizations. And then uh the concern about the the 41 HRA homes. Um I mean that's 41 HA homes. We have 21,000 single family homes in the city of Bloomington. So, basically, we're talking about 0.1% of the home, the single family homes in Bloomington. And I think uh the HA does a nice job with uh the work that they do with those homes and try and get people into to to homes and home ownership opportunities. Um what other questions did any others write additional questions down? I mean, there there were a lot and I think there were there were a lot of there was a lot of good comments, but I don't know about specific questions. Council member Nelson and then council member Dalisandro. Yeah, I think there was a question just about um in this current budget, have things been reorganized or efficiencies? And I think in Miss Carlson's presentation, she highlighted some of those things. There was departmental reorganization and then there was some priority based budgeting savings and then there had and that was in the latest from the 9.4 to the 7.4. There had been some other stuff previously to that. So, I I didn't I wanted people to know that that that work was and has been being worked on on there. Um, I'd also note um just I think you kind of touched on it, mayor, that some of those houses that are in the rental stock by the HA are specifically designed to help people get to home ownership. So, there's classes, there's training, there's um education, and then there is, you know, an ability to build credit and things of that nature for those programs. So, um, it it is actually a program that that helps many people get their own house. >> Uh, Council Member Delisandro and then Council Member Rebos. Council member Alesandro. >> Uh, thanks, Mr. Mayor. Um, I guess maybe an opportunity for a couple of clarifications if we want to do that. Um, for example, you know, we could have an argument about whether or not we should have spent a million dollars on the bathroom. I totally get that. But that was not property tax dollars. That was federal funding. Um, so totally understand people's discouragement about the bathrooms, whatever. I get that. I totally understand. But I just want to be clear that that's not coming out of property taxes. Um, the second one that I I do want to just understand is we did we did implement we started the priority based budgeting discussions this year. But my understanding is that that has not been rolled out through all departments until beginning in 20 for the next budget cycle. And do I have that correct? I'm asking that because I know that we started doing it kind of midstream this this year and so we didn't necessarily catch the whole process, but I maybe I'm wrong about that. So I want to double check that with people because I'll expect to see even more activity as it relates to priority based, you know, decision- making as we roll that out more more comprehensively. Do I have that right, >> Mr. Walker? >> Uh, Mr. Mayor, Council Member Dalisandro, you're you're correct. this was the organization's first year using that technology and and technology is really not even the right term. It's it's a mindset shift of how we approach budget. Um I will tell you coming from my previous organization, it it takes at least a full year for the organization to dip its toes into this. And you're right, we'll continue to see that rolled out um as we go into next budget cycle and evolve our thinking and our approach to um budget development and um presentation to council. So, you're right. This was introductory to that and I think you'll see it um evolve in its um complexity and utilization going forward. >> Yeah. Thank you. I I just I thought that that was an important clarification just simply because I know we didn't ask for it to be part of the way that we do this cycle until I don't know that was probably June that we started to think about that. So, my expectation wasn't that we would necessarily get all the way there for this budget cycle, but for the next budget cycle we would have a much better handle on it. Um so, thank you. Appreciate it. Council member Rivas, >> just to follow up on the question of council member Nelson's, um I'm just curious how many of those houses have been sold owned by the H have been sold to uh potential residents that bought their homes since that is part of the program over the years. Are there is there any record of houses being bought by the residents? >> I'm I'm sure there is. Uh, Council Member Mua might have a general idea, but if nothing else, we can I'm sure those records exist within the H. Council member Mu. >> Yeah, thank you, Mayor. Those homes are not meant to be bought by people after they live in them. They're meant to help people get a down payment to go buy a house and so they save that money. Um, we have a lot of people who went through that program, bought a house in Bloomington because they were able to be in that program. So, u and then we have additional work to partner with developers this coming year to actually build houses that people will own and not owned by the HR. And so, it's if you like more, I know we have our HA staff here. Um they'd be happy to help you out and understand more of that. >> Thanks, Council Member Moa. I I just wanted a clarification for the public. [clears throat] Thank you, >> Council Member Lman. Mayor, I I wrote down a ton of questions and typically I I would try to go through each and every one of those. I my fear is attempting to try to go through every single one of those questions tonight would really take us deeply into the evening and and I and I I want to let folks know uh mayor how much I really appreciate these folks coming with their their passion here and bringing this before uh you know before the council and I I wonder if there's a way for us to as we've done in past meetings kind of kind of correlate some of these questions and and do some respons responses to some of these. Maybe staff could maybe look through some of these these uh throughout this particular uh hearing and uh pull some of those questions that we may have missed and uh make sure that we try to address some of those those questions uh that are there. Um uh I just I really appreciate this this uh having the opportunity to have folks come here and and be a part of this this conversation and and and be a part of this. I really appreciate the words of uh Jim Foster, you know, when he kind of talked about this is really a difficult task that we have before us to try to figure out how to kind of balance between uh these these two uh uh these these many interests here. Um I'm just going to lift up one question, Mayor, and I'm not really looking for an answer uh today on this one, but one was raised about a 2% cut, and I you know, of every department. Um, and I I don't I I I don't know if we've done that in the past. Uh, you know, at one point you had talked about uh sharpening the pencil and trying to bring things down. I I'm not sure if we've done that in the past. That's one one question. The other question that that uh uh had came forward is uh someone had made the the statement about having a uh an oversight uh committee and and and maybe folks don't know that we actually did have an oversight committee. In fact, the council member city to my right was on that oversight committee and now he's here with us. uh you know on on the on the on the council. Um so yeah, so uh thank you. Um so those that' be I guess I mean I'm trying not to go through all these but I'm tempted but I won't do it. So >> uh well well council I think what we're we're at the point here we can we can do uh a couple of different things. We can continue to hash through this. We know this is coming back next week because we're not voting on this this tonight. This is simply the the public hearing on this. Coming back next week and maybe get some of these questions answered. Maybe see if there's additional questions that the council would have perhaps uh to once again direct staff to look for additional reductions that uh if they are there, let's let's see if we can find them. There might be some additional revenues that that could help balance things out, whatever we need to do. uh but to continue this discussion on on on next Monday night when we will when this will come before the council and we'll have our full discussion as to the ups and downs of it and whether or not we want to vote for it. Does that make sense? Especially given we've got it's all it's pushing 9:00 and we still have five items on the the agenda. Does that make sense? All right, then we will do that. And I will uh I will echo council member Lman's thanks to all of you who who came tonight and who spoke and uh who who spoke clearly uh from the heart and and from a a belief that Bloomington uh needs to to take a look inward and a thought that Bloomington is uh still a good place to live, but we we all have work to do. All of us together, we have work to do on this and uh appreciate you coming forward and appreciate you sharing your time with us. Again, as I said uh earlier on a cold, snowy Monday night, uh thank you for coming forward and we'll continue to scratch at this. We'll see where we end up. I I don't know if everybody's going to be satisfied at everything, but I want you to know that we always consider this the most important thing that we do as a council. We take it very seriously. It's not uh it's not bubble living. It's it's we are part of this community as well. So we feel the impact as well and uh we feel the impact of of cost increases and we would uh also feel the impact of of service cuts just like all of us would. So it's uh the discussion that needs to continue at the city level at the community level as to which which path we choose as we head forward. So thank you all for being here tonight. With that council, we're going to move on to item 4.2 on our agenda. This is our second public hearing of the evening. This is for our 2026 through 2035 capital improvement plan. Miss Economy shoulder. >> Good evening, Mayor and Council. >> I'll wait a moment while yes, >> Priyanka's bringing up the >> uh while we are waiting uh >> council member uh Delvandro. >> While we we are waiting, looking at the time on the clock I >> No, no, I'm sorry. >> No, no. I [snorts] was just going to what I'm going to do is I'm going to move that we uh look to adjurnn no later than >> 10:30 [clears throat] >> no later than 10 o'clock. I'm going to make a motion that we extend our deadline but adjourn no later than 10 o'clock. >> Got a motion and a second by council member Rivos. All in favor please signify by saying I. >> I opposed. Motion carries 70. Thank you. Thanks for your your your patience. Council member Dellesandro. Miss Economy Scher. >> Good evening Mayor and council. The item before you tonight is the public hearing for our capital improvement plan document. Before you is a final draft. In um bringing this document together, we've looked at the city's mission statement and to c to cultivate an enduring and remarkable community where people want to be. we've connected throughout this document be a welcoming community, a healthy community, and a community with economic um growth within it. Within the the CIP document, we'll go through the purpose and timelines that occurred during this past year, some updates and summaries since the last the study session the council had, and then hold the public hearing. And in the purpose area, this is the area that we continuously emphasize with the city council. This document is a planning tool. Um it is based off a long year uh projections. These are a 10-year plan. It has items that are 50,000 and greater. There's 192 projects within this. um in the summary um executive summary in the beginning of the document is projects in each of the categories that are a million dollars above. And just because it is within this document, there is no guarantee that the project will move forward. Um and that and as we do move forward some of these projects um as we look at the document um recall that there are different categories. The year that the project came in the document is within there. So there might be a project for city facilities 2020 23 it came in in 23 um for some of the fire stations they've been out there since like 2015. So just looking at where these are in the document they've been out there a long time. Some are new some are old and then we just follow normal procurement. Um we built this document during the spring and summer during the budget cycles. We presented to council in October the draft. The planning commission met in November. They give us a review and affirm that the document and the projects within it are within our comprehensive plan. This evening is the public hearing. Two updates since October's meeting in the Normandale Lake District. The city council approved the removal of a pedestrian bridge and uh also approved the addition of the new intersection improvement. Again, this is in a plan and it's out there for approximately 5 years from now or better that we might implement some of those new projects. The north central sanitary sewer line that is part of the city's bonding bill and um I believe we've had some conversations on that particular one. And then this is just some tenure information on what's within the document. Uh one of the large projects here um you know we have the surface transportation we have city facilities um the port and H are also within this the next two years. Um just pointing out the large dark navy fees in that first bar um is in the South Loop Port Authority and that dark bar that represents 75 million for the Mall of America Water Parking lot. So as the parking lot or the water park keeps moving in time um that park piece of the 75 million will also move. And then these are the projects that are um slated in these areas over the next two years. And one of the processes that we started probably about eight nine years ago is that um there was questions on when we when we should start the project and what was developed is as the council approves this we are starting to look at the 26 and 27year projects and starting to scope them out possibly engage consultants prepare studies and then as we having conversations with the mayor and council um been the um talk about the bid package packages and the designs for those projects. And then that concludes the presentation. Um again, you've seen majority of this document um as a handful of projects change each year, but we bring them forward for you every year. >> Thank you, council. Any questions of Miss Kamisher? >> Council member Allesandro. >> Thank you, Mr. Mayor. Yeah. So, you know, in the spirit of the budget discussions that we just had, I I I think it would be good to kind of articulate um the the next two years as you've defined that um to specifically help people understand what the what the 2026 budget impact is associated with the CIP. So, if I think it would be worth having that conversation. I I understand for example, I believe we have the city facility for the the garage, right? So that and I know that's coming up later, but specifically some portion of some portion of this CIP is getting getting allocated to this year's budget, the 2026 that we're going to work through. And so can can you articulate that a little bit more clearly for folks? Doesn't have to be the exact numbers. I get I'm not putting you on the spot, but >> um currently the debt portion of the tax levy is for projects that we've issued bonds for through um last month. Mhm. >> So that impacts the levy for um 2026. >> The debt that we are looking to issue in 2026 that will impact our 27 levy. The the largest piece is the garage that which would come uh and I believe most of those bid packages will be on your agenda for next month or next Monday. um that is looking to be approximately a $25.9 million project is how we have it listed in our CIP and um that will impact our tax levy for 27 along with our payment management projects. >> Okay. So, the the debt service that we are funding in the levy we're proposing this for for 2026 is the debt service that we've uh we've agreed to for the PMP projects as well as some portion of the the garage project, specifically the tear down and the purchase of the land. Am I correct on that, >> Mayor and Council Member Dandro? um the debt pieces that impact that we issued debt in 25 for 26. >> You're right. Payment management program, the salt shed >> and the land for the garage. >> Yep. Okay, great. So, um just as we are trying to be transparent with everybody about specifics on the in the in the in the taxes, um I wanted to make sure that we articulated that. Um and then the second portion of the garage which is largely around like you said the bit build big pack bid packages that'll come to us that will be funded in the next year levy is for the construction. >> Yes. >> Right. Okay. Very good. Um are there are there other um expectations out of this summary that uh not including that garage that we will we will have to issue debt for? PMP not PMP not included. Yeah. Um every year that's >> for 2027 we are looking at fire station five. >> Fire station number five. Okay. Thanks. Thank you. >> Other questions? Miss Academy Scholar. Council member Rivas. >> More like a comment than a question I guess. >> Well, council member just uh to temper. >> Okay. I will not say anything if it's just question. >> Well, because we're going to get to the public hearing and then and then you can offer your comments. >> Yeah, that's fine. That's right. No problem. >> Okay. >> All right. No other questions. All right. With that, I will open the public hearing on item 4.2. This is a public hearing regarding the 2026 through 2035 capital improvement plan approval. Anyone in the council chambers wishing to speak to item 4.2 this evening? >> Mr. Coleman. >> Hello, Mr. Mayor and City Council. Um uh I'm mainly here talking about the uh about the water parking ramp. Um I am incredibly concerned about how expensive this parking ramp is. Um especially when we consider that um this area around the Mall of America has some of the best transit access in the city and so much has already been invested in that transportation infrastructure that then we're going to spend $75 million on a parking ramp. 45 million of that is in tiff, right? Like that's revenue that we don't get to put towards the the levy, right? That's the kind of thing that I'm talking about of like when these oh maybe not uh when these decisions are made about the uh uh about what we are spending uh the amount of money that is coming in that that money is not going towards the levy. Maybe not. But um when uh I'm also incredibly concerned about the um what I've heard about the 10 million uh advance in TIFF revenue. Again, like I I've I've talked to some of my other activist friends uh around the country and it's like none of them have ever heard of a an advance on tiff revenue for a project like this. Um, I don't necessarily believe that that section of the Mall of America needs more parking, right? Like I get that it is the number one visited attraction in the United States, but there is a lot of parking there. There's a lot of parking in nearby lots. Um, how many parking spaces is it? Right. Like I've not seen this really talked about. It's pretty quiet. I know that a lot of that stuff comes through the Port Authority. Um, and it is like hard for me to watch a port authority meeting because like I mean uh Victor Revas knows what I'm talking about of it is painful to watch but um [laughter] um I really wish that there was a lot more um transparency about that kind of stuff about especially all of these parking ramps that the Port Authority is working with for the South Loop um when it really needs to be uh one of the best transit supportive spaces in the city. There is still so much parking that is being built in that area and I don't know if $75 million for a parking ramp that eventually will be handed over to the Mall of America for basically free is a good spend of our dollars. So, thank you. >> Thank you, Mr. Coleman. >> Is that 4.2? >> That is 4.2. Anyone else in the chambers wishing to speak on item 4.2, Julene Bergerson again. Um, just a few comments as I looked at the presentation and I want to reiterate again. Um, we saw consulting fees, but we hear that we hire the best and the brightest and we have to pay them these high salaries because we're attracting the best and the brightest. So, why cannot our best and the brightest handle these projects from start to finish? That's my question. And um about the fire station um yeah it's is probably necessary at at you know at some point but how many have we recently built for millions and millions of dollars. I mean these are the kinds of things that you have to put priorities on. if it, you know, if it's working now for a couple more years, let's let's put it off. Um, and then I want to, you know, say, of course, our safety is number one priority for us. That is a primary responsibility of city government. No one will argue with that. Um but to accept grants that you know are expiring and have no plan except to put that burden on the taxpayers and then you know build out fire stations. Um it's just it's Yeah. So my proposal is to uh decrease the department budgets and number of employees to balance out the increase you're asking us to fund for the firefighters and the fire station um uh renewals. Um, and I want to conclude by saying thank you to Chief Hodes, uh, your uniformed officers, your investigators, um, and and the firefighters, and anyone else protecting our safety. Uh, they all do a fabulous job, and there are many residents who pray for you every day for your safety. Um, we really do appreciate your work. Thank you. Anyone else in the chambers? Priyanka, do we have anyone online or on phone? >> Mayor, we do not have anyone online. >> Last call for anyone in the chambers. Council, no one in the chambers coming forward. No one on the phone wishing to speak to item 4.2. I'd look for a motion to close the public hearing on item 4. So move >> motion by council member Lman, second by council member Rivas to close the public hearing on item 4.2. two. No further discussion on this. All in favor, please signify by saying I. >> I. >> Opposed. Motion carries. 70. Council member Revas. >> Just a quick comment. Might be a little controversial though. Um on the wants and the needs. Um, do we need to buy that building across the street from the garage to the tune of56 million instead of just remodeling the existing one? Um, you know, we could do things as okay, we want that, but we can't probably afford to do this right now. One thing that I would say an answer to some of the residents though is when it comes to the fire department and the police department, there is no compromise. what they need they get. As you just mentioned, the first pri the main priority for the city to provide safety and security to the residents, that's the police department and the fire department. Uh to me, uh we shouldn't compromise on how we spend the money on how much it takes to get what they need to get. Um if your fire catches on if your house catches on fire and it takes them seven minutes instead of nine or 10 minutes that could be the difference between saving a life or saving your house with minor damage. So to me it is of the utmost importance to spend the money in those two departments. As for the rest, I don't want to say uh any controversial mentions in here, but there are other departments that could be either reduced or eliminated completely to be able to have the ability to fund the most important things in the city. And that's again, it's just my comment. It doesn't represent everybody else. It's just what I think uh because we spend a lot of money buying that building that we really shouldn't have. [clears throat] We should have just remodeled the one. But as we originally planned on the CIP that was originally sent for that those plans to remodel the the garage and the salt chain, right? Originally that was not in the plans to buy that building across the street. So and we bought that to a tune of what $6 million or whatever it cost. So you know that was an extra expense that we should have done to That's it. Thank you. >> Thank you, Council Member Delisander, then Council Member Nelson. >> Thank you, Mr. Mayor. I I actually I actually want to respond specifically about the question about the funding of the fire department. Um because I actually understand the where that's coming from. Like I could see why people are like, "Hey, you took grant money and then now you have to pay for it." The the reason we took that grant money was not instead of planning for it. It was to accelerate the onboarding of those firefighters faster than we would have been able to if we hadn't expended for it. And I think that that's an important distinction, right? By by by taking those grants, we got those firefighters on the ground three years earlier than we would have if we had had to budget for it. We're catching up to that now. We're going to fund those people. But the choices we had in front of us were get it planned for and fund it going into 2026 or plan for it, get it funded going into 2026 and take the grants and get them on the ground in 2023. And that's what we chose to do. So I think that that's an important thing for people to understand. It was always in the plan for us to get them get pay start paying for them in our levy with our dollars in 2026, but by taking those grants, we got them here. We got 36 firefighters on the ground three years early. And I think that that's great. I am glad that that existed. I'm grateful to to the chief uh for for going after that money and getting it that way because because I'll tell you as somebody who said this before when I first came on council in 2021, I was like, are you kidding me that we are a city of 90,000 people and have a paid on call fire department? You've got to be kidding me. So, I am so grateful. My house is grateful. the people in my neighborhood are grateful that we had those 36 firefighters on full-time on the ground three years earlier than we otherwise would have. So, I I just want that to be clear to everybody. I think it's important to understand that distinction. Now, the reason we're funding fire stations is because when you have full-time people, you have to house them in stations. And the stations we have now cannot support full-time firefighters on 24-hour and 48 hour shifts. This is the plan from the very beginning. It's been something that we've talked about since 2022. I I still have said and I'm going to admonish the council or the the staff one more time. Please bring these strategic initiatives to the council on a regular basis with this laid out in a timeline because we keep talking about it and I know it but citizens keep getting it wrong and that's because we're not doing a good job of communicating. This is a strategic initiative of the city that will take almost a decade to complete. So, let's put it in a timeline. Show them how it's rolling out and then people will not be confused. I ask for that every year. I'm going to ask for it again. Thank you. >> Thank you, council member. Council member Nelson and Council Member Mu. >> Yeah. Thank you. Um I think the fire stations have been explained. Um I just want to touch on Mr. Coleman's comments. Um, typically you'd be correct in terms of what you said about TIFF, but that TIFF district was descertified in 2013. That money was already there. It was an advance for planning from existing TIFF funds that had been collected. The ongoing tiff is from fiscal disparities. It is not cutting into any of our property taxes is any longer. That that stopped in 2013. No. Clarify for me then. Mayor and council, the main um mall property finished in 2016. The um IKEA site on that north side was 2018. >> Okay. So, I was a few years off, but but it is not what you would traditionally think. We didn't establish a new tiff district and they aren't paying property tax on it. They're paying property taxes on that. The money that's continuing to go in there into the future is the fiscal disparities amount paid by the Mall of America itself. Got that correct now? Okay. I got at least half of it right a couple years off. So I just want to clarify that because you know it's a very very confusing complex thing and I appreciate your comments uh about the port authority particularly since I sit on it. So I feel you [laughter] man. So other comments council on the capital the CIP the CIP because I think we've kind of gone a field here just a touch. Mhm. I said just a touch. Council member Moody, do you have anything or >> Okay. Uh, Council Member Carter, do you have >> Okay. Council member Carter. >> Oh, no. >> Council member Mua. >> Thank you, Mayor. [laughter] Uh, I'd move to adopt a resolution approving the city of Bloomington's capital improvement p plan 2026 to 2035 and providing preliminary approval to the issuance of general obligation bonds there. >> Second. Motion by council member Mua, second by council member Carter to approve the city of Bloomington's capital improvement plan 2026 through 2035. No further council discussion on this. All those in favor, please signify by saying I. >> I. >> Opposed? Motion carries 70. On item 4.3, this is a resolution authorizing the issuance and sale of general obligation sales tax revenue bond series 2026A. Mayor and council. Uh again, this is our third project under our sales tax. So we've issued for the Bloomington Ice Garden for 35 million. We've issued for the community health and health and wellness center the 100 million. This is our final project for Nine Mile Creek corridor improvements um for 20 million. So we are looking to get authorization to issue the these bonds. And so we were um again we'll keep flipping through some of the slides. We're at TripleA City. Um there are a number of improvements that we've seen come before council on the Nine Mile Creek corridor improvements. Here's just a quick list of what some of those improvements will be. Here's the information on our sales tax information to date. Um again, the proceeds are coming in um nicely. We are looking to have once all three pieces of debt are out there um approximately a $13 million a year debt service for the three pieces. Uh again, the sales taxes are coming in nicely. We're hoping that we can end this 20-year period of year 17 year 18 depending on um how revenues come in and hopefully it's steady and we don't get another COVID. So, we'll keep working through those. So, >> can I ask a quick question on the previous slide? >> Yes. >> Is it out of the ordinary that July both Julies are even to December? I would expect December to be much stronger than July's. Is that expected? >> We're only 18 months into this, so we'll keep monitoring as we go. Um, July could be any type of summer activities, summer holidays, or nothing >> activities during the summer. >> Just curious. All right, please go ahead. >> The project um will get their $20 million. It will be over a 20-year term. Um and the sales tax will pay the debt service on these bonds. So tonight is the authorization to sell. We would bring a credit rating call mid January. We would sell the bonds on the 2nd of February and we'll receive the proceeds in March. And before you is the motion there. Any questions? Let me know. >> Council questions on this one. This is pretty straightforward. It's the the bond revenue and it's going to one of the projects that it's supposed to go to. >> Council member Delos. >> Just a real quick question if I may. Thank you, Mr. Mayor. Um going back to the the trend on the sales taxes. Um th with this bond we have we have committed the we have now uh uh pledged the issuance of bonds for all three projects. Correct. And that all three projects is totals what? 155 million 150 million something like that. Correct. >> Of principal. 155 million of principal. >> Of principal. Right. Okay. Um and uh and so um on trend here it looks to me with my eyes that we are at about a 10 to 12 year cycle of paying that 155 million in principle off. I understand there's insurance or interest associated with that. Um do do you agree with that initial assessment that if the trend continues barring another COVID barring another you know housing crisis barring what I don't know whatever that we would we are on trend in in that 10 to 12 year capacity or do you think we're still at the 15 to 20 year mark because I think we have 20 years to to to pay it or we have 20 years to issue the taxes for it correct >> so all of the bonds will have a a 20-year or I'll call it the ones that will issue do in the spring, we'll have a shorter duration because we'll only collect through um 2044. >> Mhm. >> And if we should get more revenue, >> um first we have to wait till our first call date, >> which is probably 15 years in. >> Okay? Because otherwise um as you're structuring the debt um each individual year if we were to mature them faster we would pay higher interest rate and higher >> so there is a penalty for early payment in that regard. >> Yes. >> Okay. >> So come year 15 we're going to start looking at there's chunks of dollars and we're going to start defeasing. >> Yep. Okay. That's helpful. Thank you. And then um am I correct Mr. Mayor? Um we we once these taxes have been collected and are expended the tax itself goes away because the projects are complete. >> That is correct. >> Yeah. Very good. >> That's correct. >> Any additional questions, comments on this? If not, uh council, uh this is not a public hearing. This is simply a resolution. Uh so I would look for a uh I would look for action on this. Council member Mu. >> Happy to do this. Mayor, uh, I move to adopt a resolution authorizing the issuance and sale of general obligation sales tax revenue bond Siri 2026A in the proposed aggregate principal amount of $19,765,000. >> Motion by council member Mua, second by council member Dalisandro to authorize the issuance of sale issuance and sale of geo sales tax revenue bonds in the proposed aggregate principal amount of $19.765 million. No further council discussion on this. All those in favor, please signify by saying I. I. >> Opposed. Motion carries. 70. Thank you, Miss Economy Scher. Next up on our agenda is uh our next public hearing. This is item 4.4. This is a uh a substantial amendment to the 2019 CDBG annual action plan. It's a major award. It's a Mr. Polarmo, our assistant H administrator. >> Thank you, Mr. Mayor Council, I'll be quick. I know you have some other items. Uh but uh [laughter] the substantial amendment process uh so we have community development block grant funding for um these are our COVID 19 dollars. Um so we'll pull up the slide here, but uh we are here to do a substantial amendment. Uh a substantial amendment is triggered through our citizen participation plan because we're adding a new activity. Uh so that's why it's considered substantial. There's other minor amendments we can make without going through uh as thorough public involvement process um for existing activities. Um so to give you some background we received co community development block grant co9 dollars or CDBGCV dollars. Um this came to us in two kind of trunches. Uh the first you can see we we fully expended that but we had a uh CV3 so the third round that HUD had provided um in funding uh and we still have $230,000 to uh that have gone unspent and unallocated. So as you recall in April when we approved our 2025 through 2029 uh consolidated plan and our 2025 annual action plan we also included a budget that would identify a use for these funds. Um, but we have to actually amend our 2019 plan because that's just how this funding is tied to. Um, a little bit different than our carryover income that we normally would have had. Uh, so that triggered uh 30-day comment period where we advertised uh November 6th, ran through December 7th, and now we have to do our public hearing for these funds. So as I mentioned, we would be uh amending our 2019 annual action plan to added activity. Uh because these are CO 19 dollars, we need to uh tie them to the pandemic in a way and then uh it has to address something for future pandemics. So uh we are proposing to develop or actually mostly focus on rehab uh affordable rental housing. Um, we're focusing this on our single family housing stock that the HA owns. Um, because we didn't have full access during COVID. There are things on the interior that um, deteriorated. Um, there's some deferred maintenance that happened. We also weren't collecting as much rent as we normally would have. Uh, just occupancy was lower than usual. Um, so we'd like to address that deferred maintenance. Um, and it's important to preserve this because we don't really have affordable rent restricted single family homes in Bloomington. Uh, we have about 1,300 single family rental homes, but these are the only ones that are rent restricted. And as we know in the pandemic, single family homes were a little bit more accommodating. You have more rooms if you have to stay at home. Uh, you know, working from home, kids doing school, it's nice to have those kind of spaces that you can separate. And then you had your own kind of private outdoor space that is a little bit harder in an apartment setting. So that is just adding to our diversity of housing stock for our affordable units. So otherwise if you have any questions um this is a public hearing and there's a suggested motion. >> Any questions of Mr. Polarmo? Council member Mu and Council Member Delisandro. >> Thank you mayor. Uh Mr. Polarmo thanks for being here. Can you tell us what happens to this money if it goes unspent and not allocated? >> Yep. Great question. Uh Mr. Mayor, Council Member Mua, uh actually there is a timeline which is why we're bringing this today. Um it has to be spent by uh next uh believe it's April 2026. And if we don't spend it, if we don't allocate it, then it goes back to the federal government. >> Council member Dellesandro. >> Uh thank you. I apologize if you this was in the earlier slides and I missed it. How many homes are we uh planning to use this money on here in the city? >> Mr. Mayor, Council Member Jalisandro. So, this is the 41 HA homes. >> We're keeping it broader than that. It's better to keep it broader just in case if we need to spend it elsewhere. We're just calling it rehab of affordable rental units, but that is where we're anticipating targeting the funding for. >> Okay. Thank you. >> Any other questions? No questions. Thank you, Mr. Polarmo. This is a public hearing and I will open the public hearing for item 4.4. four regarding a substantial amendment to the 2019 CDBG annual action plan. Is there anyone in the council chambers wishing to speak to item 4.4 tonight? Anyone? Briana, is there anyone on the phone wishing to speak to item 4.4? >> Mayor, we do not have anyone online. >> Last call for anybody in the chambers. Council, no one on the phone. No one coming forward in the chambers. I would look for a motion to close the public hearing at 4.4. Four. >> Motion by council member Mua, second by council member Dalisandro to close the public hearing on item 4.4. No further council discussion on this. All those in favor, please signify by saying I. I. >> Opposed. Motion carries. 70. Closing the public hearing. Additional questions on this council. Any additional information needed? Council member Mua. >> Uh mayor, just a comment. Um and then if there's anything else, I'd be happy to move this one. Um but uh I'll be supporting this. um if we don't use these dollars, they go back to the federal government. And there was a com comment that these aren't just free dollars. And you're absolutely correct. They're our dollars. Instead of sending them back to the black hole that is the federal government, I'd rather see those dollars stay here because we've already paid those dollars. So instead of spending taxpayer dollars again, I want to keep those dollars here. So I'll be fully supporting this. Council >> member Rivas, >> just one quick comment. I probably didn't hear you, but why wasn't the money spent before since you had it for years already and then we increase the budget this year? Those are the questions that boggle my mind because I don't understand if there are existing funds and they don't get put to use and then we're risking losing them because they haven't been utilized up until this moment and now you're rushing to get them used. I I'm forgive me for being this blunt, but I mean that's what bothers me. Uh that's what I don't want to see happening. If you have funds and you have purpose for it, utilize it so that we don't have to be uh continually raising taxes and have the residents take the burden on it. It really bothers me to to learn that we have funds that we they haven't been utilized for years. >> Mr. Polarmo. >> Yeah, thank you, Mr. Mayor, Council Member Rivas. That that is an excellent point. Uh I think what happened was just a lot of extreme transition in the HA staff. So we were in height of a pandemic where previous funds those were spent on uh mortgage assistance, foreclosure prevent or well mortgage foreclosure prevention, uh emergency rental assistance. So things that were directly tied to the pandemic. But as we were starting to get out of the pandemic, staff was transitioning. There wasn't a clear activity that was directly toward the pandemic. you know, 23, 24, we're no longer in these kind of emergency situations where we can immediately tie the funds. So, now we're getting creative. We're a few years out, we've identified what those issues were that have been lingering from the pandemic rather than an emergency situation. But because there had been staff transition, it just kind of languished for a little while as new staff got some more. You know, I've been in this role almost a year now, and it's this has been on my mind since I started a year ago. How do we spend these funds? How do we allocate these funds? And how do we get through the process knowing that HUD right now is is what it is, you know? So, uh, it it's been on our mind, but I think right now it's just taken a little time to actually get the push to get that done because we had staffed nowhere. >> All right. Thank you. Thank you, Mayor. >> Additional questions, council. >> I've lost track of where we are. >> Oh, thank you, Council Member Mo. >> Thank you, Mayor. Uh, I'd move to adopt a resolution approving a substantial amendment to the 2019 community development block grant action plan approving the allocation of CDBG CV3 funds to develop a rehab affordable rental housing. Second >> motion by council member Mua, second by council member Lman to adopt a resolution uh approving a substantial amendment to the 2019 community development block grant action plan. No further council discussion on this hearing none. All those in favor please signify by saying I. >> I opposed. Motion carries 70. Thank you very much Mr. Polarmo. And our last public hearing of the evening, item 4.5. This is a public hearing regarding small business codes and processes phase 2 ordinance. Dakota Castende from our planning department is here. Good evening. Welcome. Thanks for sticking it out with us tonight. >> Yeah, thank you, mayor and council. Thanks for um sticking with it with me, too. So, we're going to um I'll try to keep this um really short because I know it's been a long meeting. U so we're talking trash enclosures. This is the the final piece of our small business code uh project. And again, the goal of that project was to help lower barriers for business formation and operation in the city. Um, as you're probably well aware, our existing standards for um, refuse or trash and recycling facilities is that it must be attached to a principal building. It must be internally accessible from the building. And then there's some additional finishes required um, inside that trash room for food and grocery store uses. And so what the proposed ordinance would do is to allow um all non-residential uses and all zoning districts to instead provide an exterior refuse enclosure and it also establishes performance standards for said enclosure. So this um on the previous slide again kind of a typical example that you see here in Bloomington of the current kind of attached trash room. What this ordinance would do is provide a second option um for commercial and industrial and office uses uses to provide an enclosure something similar to you see on on this this image here. So again we're talking all commercial industrial institutional office uses to provide that second option. They could still provide an interior trash room if they would like. This just gives them that second option for more flexibility. Um and again that enclosure will have to meet all of the performance standards outlined in the ordinance. So, um I won't walk through all of these. I'm happy to answer any um clarifying questions that you have on them. But these are the 1 2 3 4 5 nine performance standards um for those enclosures. Um so there are things related to setbacks um access and circulation, lighting, screening, exterior materials um and the floor surface for those. Um, one item I do just want to highlight from the planning commission public hearing is they did um recommend an amendment to staff's original ordinance. And so that language is here in the the ordinance in front of you um with the motion language. So it it focused on the the general setback. We had 20 feet from a property line along a street and then five feet from a property line not along a street to kind of match typical um landscape buffers and and setbacks in more of those commercial and industrial areas. Um staff kind of left that intentionally open um because a lot of commercial and industrial uses are on corner lots or through lots where you have a a street on the front and rear property line. Um and so it could really limit where you place an enclosure. Uh, and so in some cases that enclosure could have been closer to the building than the street. And there were a couple of commissioners that had some concern with that. And so what this language here is to clarify that the trash enclosure cannot be closer to the property line along a street um from the principal building um with an exception on that through lot um as long as the enclosure is behind the building. Um, and so I have an image here just to kind of show that example. Um, what the original ordinance was from staff with the recommended um, language from the planning commission. And if we wouldn't create that um, exemption for through lots, you could see in this example of a property on Lindale A, it really restricts where they could um, provide a um, detached trash enclosure. And so um in this kind of middle the middle image here again just to show technically if they would put it behind the building it would be closer to the to the street than the building but in this case it's the the back side of the building that's all the loading and and things anyway. Um and wanted to create that that exception. So that's kind of the the clarity there. Um and so really with that I I'm happy to answer any questions that you have. There's kind of two motions here. The first is for the ordinance itself and then of course we always have our um uh authorizing summary publication of the ordinance as well. So >> thank you Mr. Castend day. Council questions on this uh specifically with the the amendment from the planning commission. Any questions around that? >> Council member Rivas. >> I do have one. Sorry I'm making this meeting longer today. Um, in regards to the building that has two roads on the front, one in the front, one in the back, and then you're allowing or making an amendment to have the trash on the side. And you mentioned that that would be the side where they get deliveries. And uh, wouldn't that hinder the delivery process to them? If an 18-wheeler comes in that side and there is a building in there, that would be some kind of an impediment for the property for the owners to have that trash in there. >> Yeah, sure. U Mayor, Council Member Revas and Council, um it's a good question. I think um there is language on one of the performance standards around access and circulation so that the enclosure itself and the the dumpsters that would be inside the enclosure can't block um vehicle or pedestrian circulation on the site. So um yeah, this is just an example. I don't know where exactly they would put it, but if they put it on this backside, it would also have to make sure it doesn't conflict with the the truck circulation or vehicle circulation on the back side of the building. more just kind of wanting to try to offer that exemption on the through lot um to hopefully reduce like variance requests and things in the future um kind of given that backside is more of that the loading and and kind of some of those operational uses of a of the business versus the kind of front facade. >> So so in other words they will have to ask for a variance to be allowed to to build this particular outside trash building. Uh so that would make it difficult more difficult for them to [snorts] get their facilities up and running in a proper time, right? They will have to come back to the city and ask for a variance. Why not allow them right off the bat to be able to build it on one of the side streets if they need to only if they need to? >> Yeah, Mayor, Council Member Revas, that that was kind of why staff had encouraged the planning commission to make that exception for the through lot. Um, so what in the proposed ordinance that's in the staff report would allow this kind of middle image to give a little bit more flexibility on where that could be located to try to avoid the need for a variance. Um, um, with the corner lot between the building, the way that the ordinance is written, that might mean someone would need a variance on the the corner lot example. if it was just a really unique situation that they really couldn't put it anywhere else. Um there would be that option for them. But um I think the idea here was to at least create some exemption to just help reduce the need for variance which is yeah just another another application and another process that a business would have to go through before opening. So um staff felt really comfortable with kind of this this direction that creates more flexibility for for businesses to just have it outright be able to construct it without a variance. Right. >> Thank you. Additional questions, council? >> If not, thank you much. Don't go far in case there's any additional questions. I will open this public hearing on item 4.5. It's a public hearing regarding small business codes and processes phase 2 ordinance. Anyone in the council chambers wishing to speak to item 4.5 tonight? >> Priyanka, do we have anyone on the phone? >> Mayor, we do not have anyone online. Last chance for anybody in the council chambers. Council, no one coming forward. No one on the phone. The motion to speak to item 4.5. I would look for a motion to close the public hearing on item 4.5 tonight. >> Second. >> Motion by council member Reevas. Second by council member Lman to close the public hearing on item 4.5. No further council discussion on this. All those in favor, please signify by saying I. I. >> Opposed? Motion carries 70. >> Council, anything on this one? Council member Lment. >> Uh, thank you, Mayor. You know, I've in the past uh had mentioned um my opposition uh to this. I want to thank staff uh for the responses uh that that they gave me. Um I'm just not there tonight. And looking at the time, I can count noses. I know where we're at on this. Um I I certainly am in favor of uh the direction in which that we're going uh with trying to to make it so that uh our uh small businesses and other businesses have the opportunity for some flexibility. And so the spirit of that I agree with. Uh but the details of it I just feel that as we move towards our changing our zoning and increase our land use density uh it's going to create unforeseen uh conflicts uh when it comes to odor and just a number of other things. I'm not trying to argue with anybody here up here. I think, you know, I I maybe I'm wrong. Uh but let's kind of move this along tonight and kind of get this thing uh passed, but uh I will not be in support of this this evening. >> Thank you, Council Member. Council Member Dellesandro. >> Uh thank you, Mr. Mayor. I am for one very excited about this ordinance. I've been asking for it for a while, and I appreciate you all working so hard to get it done. I hope that we do get it passed tonight. Um, most specifically I'm excited about it because of the avaluable assets that we have that we can't turn into new types of building and function because of this ownorous fun this ownorous requirement. Um, uh, this way, you know, a building that otherwise would not be able to house a restaurant can house a restaurant or some other facility and move very quickly into building out the density that we're interested in. Um, I I'm not a I'm not a huge fan personally of of of concerns around pest and odor and stuff like that. I mean, you're in a city. Uh, those things happen. I completely understand them and we do have to put safeguards in place. But, um, but I think our environmental health team does a great job with that already. And we have a ton of places that serve food today that have outdoor places. We just called them hotels and things like that and then we don't hold them to the same standard. So, um, my garbage goes outside, by the way, every day, as does everybody else's. And, you know, that's where we're at. So, anyh who, uh, if anybody, no, I'm thrilled to make the motion if nobody else has any comments. >> Council member Carter does. Council member Carter. >> Thank you, Mayor. I'll be very, very quick and then I'll turn it back over to you. Um, I just want to say that I agree with Council Member Dislesandre's comments. Um this, you know, as we have focused the last couple years on being more businessfriendly and especially more friendly to small businesses in Bloomington in my conversations, uh this is one of the biggest things that has come up as a barrier. Um it's very expensive. Uh so the fact that uh we are allowing this flexibility but continuing to maintain strong standards for health and safety, uh I think makes a lot of sense. So um I'm going to be happy to support it. >> Anybody else? Council member Dellesandro. >> Right. Go ahead. >> Uh I move to adopt an ordinance establishing allowances and performance standards for exterior refuge solids, waste, and recyclable material enclosures for non-residential uses in all zoning districts, thereby amending chapter 21 of the city code. Second. >> Motion by council member Dalisandro. Second by council member Mua to approve an ordinance establishing allowances for and performance standards for exterior refuge, solid waste, and recyclable material enclosures for res non-residential uses in all zoning districts. No further council discussion on this. All those in favor, please signify by saying I. >> I. >> Opposed. Motion carries 70. Oh, excuse me. 61. I apologize. Motion carries 61. Council member Lman in opposition. Council member Dallasandro. Yeah, I'm going to start calling this Bob Countryman's bill. [laughter] I move to adopt resolution uh authorizing summary publication of the adopted ordinance, thereby amending chapter 21 of the city code. >> Motion by council member Dallas, second by council member Mua for summary publication of item 4.5. No further council discussion. All in favor, please signify by saying I. >> I opposed. >> Motion carries 70. >> Great. >> Thank you very much. >> Thank you. >> Again, thanks for sticking with us. >> I'm going to ask staff here. Uh do we have time to get to item uh 5.1? Okay, I will call item 5.1 then. This is a resolution to revise compensation plan for full-time, part-time, seasonal, and temporary, non-union employees for the city of Bloomington. Mr. Steve Barrett, our HR manager, is going to lead us through this one. Good evening, Mayor of the Council. Um I'm going to go fast, which is out of character for me on a [snorts] presentation like this. I'm going to do my best. Uh going to talk to you tonight about a new compensation plan for our non-represented employees. It's a result of a thorough compensation study conducted by Baker Tilly and this relates to implementing their recommendations. So, oops, here we go. Uh why we're here to create a new compensation plan. Number one is to address inequities in the current structure. Right now, our non-represented employee compensation plan uh essentially has six salary steps and then a what's called a performance range after that to a maximum salary. And what has happened over time is when employees get to that performance range, um it's been all over the map on what kind of uh salary increases employees would get within that performance range. There was a lot of discretion by department heads and such. And so we want to address those inequities. uh we always want to rem remain competitive in the job market but I will say uh the compensation schedule is important you know earning money is important to every employee it's one piece to the puzzle of the total compensation structure it's a big piece but there's also uh group benefits paid time off flexibilities we can offer things like that so this is one big piece to the puzzle uh we also want to create a fair and transparent system for employees wages to increase over time. Uh we want stable budget projections as always. Uh we want it to be sustainable. We don't want to do a compensation study every four years and come up with a new compensation plan every four years. We want to create something now that's sustainable far into the future. and that will in turn improve our long-term financial sustainability. So, we partnered with Baker Tilly, signed a contract back in the fall of last year, 2024. We had a kickoff session with employees in November of 2024, uh, explaining the process. A lot of it was predicated on a job questionnaire that we invited every employee to fill out so that they could explain in their own words, what they do, what their day-to-day work is like, uh what sorts of things they're working on, and things like that. These questionnaires were reviewed by supervisors and the review went all the way up to our deputy city managers. In addition to the questionnaires, Baker Tilly reviewed every job description in the city. And from that information, they evaluated every job based on nine factors. Uh factors such as what are the minimum requirements for the job? Does a position supervise people? How many people does it supervise? What's the level of decision-m uh does a position have? Does do decisions impact the entire city or does it impact uh a division within the city? Things like that. And from there they assign points to every position. And then we group positions based on these points into the proposed pay grades uh that you'll see with the new compensation plan. They also did a market study to make sure that whatever pay plan we come up with is competitive in the market and will stay competitive in the market. And then we went through a number of implementation scenarios. I will say uh the implementation scenario that we're bringing forward tonight is factored in to the 2026 budget and so uh it's already it's already baked in to the 2026 budget. So the new compensation plan that we're talking about tonight meets uh meets our needs. We're looking at a single compensation plan for all city employees. Right now, we have one compensation plan for regular status employees and we have a separate comp compensation plan for seasonal part-time employees. We're going to put that together, have one compensation plan that applies to all city employees. So, grades one through three are devoted to those seasonal temporary positions and grades 4 through 23 are for the regular status positions. So every city employee will have the same will be in the same compensation system as our [snorts] highest earning department heads. We're all going to be in it together. The plan is predicated on nine steps, a nine-step structure. So step five is the midpoint of the pay range and every step has a 4% step increment. Now that 4% increment is higher than the current step increment we have which is around 3%. So that uh that will have implications as I'll talk about here in a second. Uh number one as far as benefits uh having a more simplified predictable structure employees will know they know what pay grade they'll go in what step they'll go in and they'll get their step next step increase on their anniversary date. [snorts] So that will spread the step increases throughout the year depending on what your anniversary date is. But it's predictable. Everyone will be able to see that. Um, and it eliminates these con inconsistent wage progression patterns that we had with these performance ranges that that we've had for the last four or five years. Also, we want to remain competitive. Uh, I mentioned pay is an important piece of it. It's not the only piece. Uh, but the 4% step increases will keep us competitive. colas, cost of living adjustments because our steps are 4%. We may not need high colas from year to year. Right now for 2026, our neighboring cities are looking at 3% 3 and a.5% colas, but they don't have 4% steps like we're looking to do. So, we can do a more modest 2% cola, move people into this pay plan, and they'll be getting 4% step increases on their anniversary dates. We want fair and transparent wage progression. We want employ excuse [clears throat] me, we want employees to know ahead of time how much my pay increase will be, what step am I going to move to. It's all going to be there, transparent, open for everybody. It'll create more predictable budgeting down the road because we have less things to factor in. It's what kind of cola are we thinking about and how much will steps cost for all city employees. And that's a fairly simple calculation. Improving financial stability and equity uh is an important piece to this. The cost savings um by by partnering with Baker Tilly uh it it came in Thank you. it came in less than what we budgeted for. And so we're using uh those savings, a chunk of those savings to help implement moving people into this new salary schedule. It's a one-time cost to move people into it. And lastly, uh sustainable long-term budgeting. I know Kari likes to project out you know 15 20 years and this will will give us a better opportunity to have more accurate forecasting for our salary and wage increases over time. With that um I went through it very quickly but uh my voice is going to fail fairly quickly and uh the requested action is here. I want to leave as much time for discussion from all of you. >> Thank you Mr. Barrett, Council Member Revis, >> I have a couple of questions for you if you don't mind. Um, the the one thing I help me understand is this is a 4% automatic raise at the one-year anniversary. You don't consider any evaluation whether performance is great, mediocre, or totally a failure. Uh, they automatically get a 4% raise on an annual basis based on their anniversary. Right. >> Yes. They will not be. >> There's no evaluation behind the race. It's an automatic race. >> Yes. Council member Rivas, Mr. Mayor, members of the council, uh these step increases are automatic on the anniversary date. However, uh we are looking at different ways to manage employee performance uh in more effective ways because when when we leave it up to supervisors on whether you get a step increase or not, we ended up with arguably some inequitable results throughout the city and we need to address that in a different way. >> So, in other words, the city doesn't have a system to evaluate its own uh um staff members. I mean it has been left up to every individual supervisor or manager man department manager to decide on the criteria how you uh give a raise to a p to an employee based on performance. It was just left to the managers and supervisors to do so. Right. >> Excuse me, Mr. Barrett. Um Mr. Mr. Walker. >> Yeah, just to to clarify on on your behalf, Mr. Um the city already currently has a a step system. Um right now it's um six steps. This is prolonging that out now to nine steps. So it'll spread some of that fiscal impact over a longer period of time. And then instead of uh 3% between those steps, this is proposing to go to 4%. And then uh our employees and again I want to stress this is um applicable to our non-represented employees and and we do have a robust performance evaluation process for each of our employees. >> I you know I just have a hard time understanding it because uh anywhere you work uh you get a raise based on your performance anywhere from zero to 5% I guess depending on the company. Um, I mean, if we're going to be automatically giving a raise to the staff, it just doesn't make any sense to me. It's not a way to run any business, uh, I just have a hard time. But, you know, and on based on that, how does it improve the long-term financial financial sustainability of a city if you know, this is automatically being given to them? I mean the only thing that I see that it helps is coming up with budget because you know you have an idea how much you can put aside for payroll purposes only. However, when it comes to the financial sustainability of the city, it doesn't really make me gives me the understanding or the tools to understand what the purpose of this is other than giving them a 4% on a a year year anniversary. It just, you know, doesn't make any sense to me. So, please help me understand or whoever can explain it better to me. It just doesn't make sense to me. >> And council member Rivas, members of the council, um you touched on an important point that it does provide greater accuracy in predicting uh what future wage costs will be over time. Um now whether whether anyone thinks 4% automatic step increases is good or not um that's not for me to debate right now. But it does provide greater accuracy in predicting what these payroll costs will be so that uh we could have better accuracy for the cost of everything else. Again, it just helps produce a, you know, a budget with a better idea of what the expenses could be, but it doesn't really save help with city's financial uh sustainability in in the future. It really doesn't because it just it's not the purpose of it. It's just to be able to to come up with a budget in a more accurate way because you have a better idea what you could be spending. But to me, if we're going to do this, it will have to be based on evaluation, performance evaluation. You can't just be giving people a 4% uh raise uh just because uh we want to be competing with other cities. I think it should be based on performance at any time, anywhere you work. If you don't perform well, you don't get a raise at the end of a year or at the beginning of a year, however it may be. That's all I got, Mr. Mayor. Thank you, >> Council Member Lman. >> Thank you. Um, if I have a little time I want to swing back on that, but I got other things here I want to uh ask about. Um, so this is just the beginning of this process. I imagine I know that we've got the study here, but there'll be more conversation. You know, there'll be an opportunity for us to to re-evaluate this after this has been out there for a couple years, right? >> Council member Lman, members of the council. Yes. Uh we we have a a cadence of doing a compensation study every four years lately. Um that's more or less industry standard. There's nothing preventing us from doing a study every three years if we wanted to address it sooner. So you know >> nothing's carved in stone. We're always going to be assessing what's best for the city. >> You may have read my mind, but that's sort of I wonder if we need to do a little sooner because of this this new process. One of the other things that has been raised with me and I want to thank staff for answering my other questions and I'm not going to raise those here. So if anybody wants to read those, please read the agenda at the end. Um uh I'm curious about you talked about these different buckets that are out there that attract workers here. And I'm always concerned about how we are being competitive uh with other cities and drawing the best employees we can possibly get here. Um, you know, for example, we've got some folks who are able to work from home and others who have to come into the office. Are are there any, you know, and I didn't I didn't see it here, maybe it was in there, but uh uh is there any way to kind of and I don't want to put you on the spot, so if you don't have the answer today, we can get it later, but is there any way to kind of balance some of that stuff out? So for those folks who maybe drive in, you know, have you seen other cities do anything around, you know, credits for that, you know, since, you know, to make, you know, make that more attractive to to come into into work as opposed to, you know, working from home and those folks who don't have to have that. I guess the the idea is the wear and tear on their car and that type of thing. >> Council member Lman, members of the council, we are looking at um all those aspects. Um the number one nationally in surveys still the number one interest of employees where they are and when they're looking for a job is is what the pay is going to be. That's still number one. >> Flexibilities uh are second. And anecdotally, uh, when I'm answering questions from job applicants for various positions, by far the number one question I get is what kinds of flexibilities can I have when it comes to working remotely and things like that. So we're those flexibilities uh are in the mix as well as you know we're looking at different approaches to uh how we account for paid time off and are are the acruals of vacation time and personal leave is it is it how does it compare to our comparison group of cities um can we do that address that in different ways uh so those are the sorts of things we're looking at >> I've been a lot of national conferences and they talk about that just briefly mayor Um, and I know we're getting really close on time here. uh you know this step pro process that that's here has been a huge issue here and I know that uh past leadership has had that conversation um about that and I know this is a really complex uh topic but I want to you know I think this is a good uh a good conversation for step uh with those inequities that have been across our entire and I and I think if we look at our our uh our mission and our core values. This begins to start to address some of those things. And I think that's really important that we we uh address this. And this is kind of a very first step in terms of doing that. I think we've got to to kind of move this from where we were at to where we can be with this. That's all. Thanks, Mayor. >> Council member Delis. >> U before I do, [clears throat] Mr. Mayor, I know we were had a 10 o'clock thing and did you want to did you want to make a motion? Uh, I'm I'm going to have to move that we suspend the rules because officially we're supposed to be done by 10. I'm going to suspend the rules and say we'll be done no later than 10:15. How about that? Can we do that, council? >> Yes, sir. >> We've got a motion in a second. All in favor? >> I >> opposed. >> Thank you, council member. >> Thank you, Mr. Mayor. So, um, I'm going to ask I'm going to ask a question that's been asked a little bit more gently if I if I could because I understand that this is complex. First off, I just have to say I understand why every we have a we have a capitalistic society and we have corporate culture and I and we're all part of that. I work as a product leader myself. I get it. Cities are not businesses. You cannot hold them to the same standards and I understand why people want to do that because that's what we live. We live in a capitalistic society. We want to do that. But we really can't do that. It's not fair to the people who work here and it's not fair to you as residents to to constantly be told that we can operate the city that way and then not do it and get you frustrated. Like that's just not fair. So can we really need to stop trying to compare what we do here as the city of Bloomington to a business. We do not make profit. We that's not our goal. We do not have stakeholders and shareholders who can vote us out. We're you the people and that's everybody in this in this place regardless of their ability to pay for the service. So we are not a business. It's frustrating to me to hear it. Now I'm going to do math because I like math, too. If I have three employees that I pay $100,000 each and I want to give them a 5% raise because of performance, I'm spending $15,000 to do that. If I have four employees that make $100,000 and I'm giving them 4% guaranteed, I'm spending $16,000 and I'm I'm achieving that objective for four people, not three people. So for want of $1,000, I'm going to maintain four high performing individuals. I also am guessing that if this is in place, and I'm assuming this is true, you tell me if it's not true, that if I if if four people get $100,000 and by the end of that year they are not performing to the standard we expect, I don't expect them to be here, I expect that they are no longer employees and that we've replaced them with higher performing people for which we will get 4% raises to them. And so I might be wrong and I'm okay. I'm somebody can bring the math to me and tell me if this is not the case. But what you do when you have this multi-system, 3% here, 2% to this guy, and you know, I've done it before. I've done it a million times. 20 employees got to take I get one bucket and I have to spread it across 20. And good luck to you. You try to get to an average of three, but somebody's getting screwed and somebody's getting paid extra, right? That's what happens. And so, and so I understand it. I understand the predictability of it. And we know that 4,000, you know, four people getting 16 gay every year. we know exactly what that money is. But I also expect that they're not going to be here if they're not performing to our standard. That's the that's the most important thing. And I if if we don't have a a high quality performance program in place, then I do have questions for that. But I don't think that that's true. I just want to be clear that that's my expectation. All that having been said, the the the more important thing is that if you take that same $16,000 and you try to spread it across five, six, eight people, invariably really really good people who just happen to end on the lower end of that because you only had so much money, they leave. They leave and now we have turnover and turnover costs money. So, I I really really want us to pay attention to how this works, and I'm excited to see it go through a year. And I want you all to come back and show us how it is stabilizing the employee financial cost to this city. 76% of the burden of the of the of the budget is people. So, having a very predictable model will help us get better at this in my opinion. But tell me, number one, tell me if I got the math wrong. And number two, please bring this back in a year and show us how it's changing the way that you can be predictive and also how you can be sure that we are not keeping people around who aren't earning that 4%. >> Council member Dellesandro and members of the council, I'd be happy to come back in a year. Uh any metrics that you want us to measure, we will measure them. And uh I'd be happy to come back, not only to show you the predictability, but also to talk to you about different approaches we're going to take to employee performance and uh utilizing the skills within the human resources department to help employees be successful and supervisors be successful. Uh I'd be happy to come back in a year and talk to you about that and show you the results. >> One one other quick question, Mr. Mayor. What I don't think I saw in this packet that we were talking about um um the issues associated with um the uh the liability that we carry the retention liability we carry for acred benefits. Um is that coming back to us anytime soon? Um because that that's where I feel like we have a lot of opportunity for re uh reformation. >> Mr. Walker, >> uh Mr. Mayor, Council Member Dellesandre, uh you're right. This is just about um wages for employees. Um council's expectations around benefits is certainly understood and on our radar and something that we'll be working on as we start 2026 and have more dialogue with you about that. >> Council member Carter. >> Uh thank you, Mayor. So, um I will be really honest that I also am struggling with this idea that everybody just once a year gets a 4% raise and it's not based on performance. Um, and so, um, I would love, maybe we could maybe delay this vote until we get more information, but I would love more information on the performance system. Um, I am in a leadership role and I know how hard it is um, when you have employees who are not performing um, like to move them out the door, right? It can be really hard sometimes. There's lots of considerations, including legal considerations. And so, um, I have some concerns there. I would like to know more about the performance systems that we have in place and how we're going to hold people accountable. [snorts] Um I also am just wondering, you know, you talk you've talked about um that it's predictable budgeting and I would love to just better understand like maybe see the modeling. Maybe we could see the study that Baker Tilly did um that shows that this will be more beneficial long term for the city. I believe you. But just in terms of processing it, I just feel like it would be helpful for me to see it and be able to review it. Um, including the information about the inequities, I totally understand what you're saying, but I'm I'm still trying to wrap my head around like how do we get to a point where everybody is in more of an equitable position and then how do we and then I can see how this sustains that over time. Um, but yeah, I'm really I and maybe it's because I work I lead a nonprofit and so like the idea of being able to give all my employees a 4% increase every year plus COLA is like woohoo, that would be amazing. Um, and I think that there are probably um others out there right now in the same position. So, um, again, I don't I'm not saying I'm I don't want to say I'm not supportive, but I would like more information. I also am just interested in like in why you went with three or 4% instead of 3%. So that's kind of where I'm at. [clears throat] >> Council member Nelson and Council Member Mu and we got to move this along if we and and I don't necessarily disagree with Council Member Carter that this it feels like a rushed vote and an incomplete discussion if we ran it to a vote now. So we might want to think about uh holding this off until a future meeting. Council member Nelson. >> Yeah, thank you, Mayor. I would agree with that as well. Um so just a couple quick questions that haven't been asked. Um, in terms of this uh compensation study, uh, did compensation for particular positions change? Did some of them go down? Did some of them go up? Can we get some type of sense of of what the impact of that both the compensation study, the the market study, how that impacted things? Oops, sorry. Um, my second question is you indicated that this was uh used for the 26 budget. um did that provide an increase in costs over what we would have seen if we didn't make this change or a decrease in costs and how much um if we didn't implement it and then you know to some of the points here the thing that I see that's predictable is if 75% of our costs are labor and everyone gets a 4% increase what's predictable is we have a baseline 3% levy increase and then add in the bonding of a couple percent so our baseline is 5%. That's where we start if we have this plan at 75% labor at 4% increase. And that's not very comfortable for me to start at 5%. So, um, you know, I'd like to get our current one to 5%, but I don't want to start at 5%. So, um, those are my questions. And the only reason I did that quick, mayor, is I know we're running out of time and maybe that could just be as followup because it sounds like we might go and have more conversation later. >> Yes. >> Uh, Council Member Mu and then Council Member Rivas. Quickly, guys. >> Thank yep. No, everything's been said. The The thing I just want to say is we know the current setup isn't great. We have to do something different. I don't For me, I'm having a hard time around seeing how this is different from that. So, I want to continue to have the conversation um before we make this vote because uh I'm not seeing it as well. >> Council member Rivas, >> just for the record, just to throw some numbers out there, assuming that 650 employees make $100,000 a year, I think it's close enough to that. Um it's $2.6 million extra to the budget given the 4%. So that's two points of a percent increase on the levy just for thoughts. Thank you. >> So council, uh I I would suggest uh and tell me if if you agree on this. I mean, if we want to put this to a vote, we could do that now. I would suggest that we we hold this over until uh at least the next meeting. Uh I understand there might be some time implications based on the implementation here but uh I do think this is a an incomplete discussion on all this and I would like to uh like to make the motion that we hold this over until the meeting on the 15th or perhaps even the meeting on the 22nd. >> Second >> motion and a second to hold this over to uh date to be determined and uh we'll leave that up to staff where it might fit in best. Any further discussion on this? If not, all those in favor please signify by saying I. I >> opposed. Motion carries 70. Thank you. >> We're now to our city council policy and issue update council. Uh I'll go quickly because I know others would like to speak also at our listening session earlier this evening. We had four speakers. Matthew Howlet uh followed up on his comments from last week and he was talking specifically about the the separated bike lanes for Nick Nicollet Avenue that transit plan sustainability just in in general. Uh Matthew certainly has interest in that. Pam Palmer was with us this evening. She talked specifically about commercial vehicles and residential neighborhoods and uh also talked a bit about trash collection uh within uh within the neighborhood also. And finally, Dr. or excuse me, third uh Dr. Karen Willis uh spoke about the recent um as she put it systemat systemic terrorizing of Bloomington residents by federal agents and what neighbors can do to help keep us all safer. Uh she does uh represent the group Indivisible South Metro Minnesota which is based here in Bloomington. And then finally, Andy Thu spoke to us about uh traffic safety work that was done and the uncontrolled intersections and expressed his appreciation for that. Uh that is all I've got for the uh the listening session. Uh Council Member Carter, I know you wanted to speak. >> Yeah, thank you, Mayor. Uh >> excuse me. I'm going to throw to Mr. Walker first. I apologize. Didn't mean to. >> You're quite all right. And nothing tonight, sir. >> Good enough, Council Member. >> Thank you, Mayor. So, I just wanted to make some comments about um related comments to what Karen Wills was saying in the uh listening session today. Um, so I think we all know that Bloomington is home to many immigrants, many who live here very much legally, many who are citizens. Um, they own businesses, they are leaders in our community. Uh, their children go to our school, they provide very valuable services. Um, and they are upstanding neighbors. And I I feel very confident that everybody up here agrees with that. Um, but right now, because of the actions of ICE, not only in Bloomington, but in St. Paul in Minneapolis and the really horrible and racist comments made by the president of the United States. Our neighbors are living in fear and there are children in our community living in fear. Um they need to know that their local city government has their back. They need to know um that we appreciate them uh that we value them. Uh that when we celebrate things like we did earlier tonight around human rights and when we talk about our commitment to equity and inclusion, we don't do it just when it's convenient for us. So, I believe, you know, at a minimum, I appreciate the statement that the city put out. I greatly appreciate the work of our police department. Um, but we really made we really missed an opportunity in that statement to make sure that our immigrant neighbors know exactly how much they're valued, that we believe that they belong here, and that our police officers are out there to protect our community, and that means to protect them and to keep them safe. Uh, so I just wanted to say that um, you know, I wish that our statement had been stronger. I understand we're probably not trying to make too much of a fuss and put a target on the city of Bloomington's back by, you know, all kinds of politicians, but um, I also just think it's really really important because people are really hurting in our community. Um, I have heard explicit stories from people and and they're real. These are real human lives. And so, um, I just wanted to say that out loud. So, thank you. >> Thank you, Council Member, Council Member Rivas, and Council Member Delisandro. Council member Rivas, >> I just had a, um, a lady in charge of a Cornerstone Association. Are you familiar with that? Yes. >> And they approached me asking if it could be possible to have the same relationship that the city had with them in the past. uh that they continue to provide the same services assisting uh abuse women and providing housing and facilities for them when they with when they need it. Uh and so they asked me to inquire um whether the city was willing to continue with the relationship they had in the past granting them some funds. I believe um you know we can talk about the amount later I guess but uh I just wanted to mention that this opportunity that's it. Thank you. >> Thank you council member. Council member Dellesandro. >> Uh thanks Mr. Mayor. I just uh appreciate um uh Council Member Carter's comments and I would like to be a little bit more explicit if I can on that front. Um you know my my expectation I think this is reasonable. I hope that this is reasonable to everyone else. um is that if if I was in a public place like our Walmart for example and and somebody in a mask came up to me and physically, you know, tried to pull me out of that store that if there were police people from Bloomington there that they would be like, "What in the world is going on?" Um, so I'm hoping that we can find a way to hold to to to ensure that when we do what we do as law enforcement, as as fire, as any public safety official, uh, including our us as city council members, um, who are responsible for the well-being of the the citizens around here and and and our residents in general, that that we would would have a certain set of expectations that, you know, if if there is an action, which is none of our maybe not our purview because we don't do le, you know, federal enforcement that we would expect that they would identify themselves, that they would show the warrant, that they would show the badges, that they would do all the things that our own police officers are held to as a standard. Um, and I just wonder, I don't know what the answer is, but I wonder how we could be more supportive. But that's certainly my expectation. And that if that's not happening and I was if I was being pulled out of a place by somebody who did not look like a legal entity that if a police officer was nearby that they would intervene and I'm hoping that that's what our people will do. I would I think so. I mean I know these folks. I ride along with them every every month. You know that I would hope that that's happening. If that's not happening or if we haven't told them that it's okay for them to do that I think we should I guess is what I'm saying. Thanks. Uh, council member, we're we're wrapping up here. Council member Lman, >> I know it's late, but I I think this needs to be said, though. And I will say I don't I don't I don't think we can put our police department in that position. If a federal government comes over to pick somebody up, they don't need a a uh what do you call this? A uh search warrant to take anybody. The federal law specifically says that they can be picked up anywhere. If we're gonna ask our police department to put theirel themselves in a position that they're violating the the federal law, it's not a good position to put the city on. >> So I I need to say this. I I'm >> we can I'm I'm sympathize with the necessity of whatever is going on out there. I haven't seen anything. I haven't spoken to a lot of people. I haven't experienced and I nobody has told me that they have experienced it. And I talked to a lot of Hispanics in the city. So based on what I know, whatever I hear on the news, I don't believe it because I haven't seen it and nobody has told me that it has happened. But I wouldn't want to put our police department in a position that they will be breaking the federal law. As a city, we cannot encourage that. >> Thank you. >> I think you're slightly mischaracterizing what council member Dellesandro said, but council member Lman, let's wrap this up. Let's get out of here. >> Yeah, I think it's time to go. I was going to suggest maybe it makes some sense. Mayor, I turned both to the mayor and our our city manager. Maybe it makes some sense to have some conversation. Um, and I think this might qualify for a offline discussion maybe, uh, from a security standpoint. Uh, based on what my two fellow council members have have have brought forward. Um, so I'll let you guys kind of think about that. We're out of time, so we'll leave it there. >> Council, we are actually overtime here and I'm going to look for a motion to adjurnn. >> So moved. Second >> motion and a second to adjourn tonight. No further discussion. All in favor, please signify by saying I. >> Opposed. Motion carries 70. Thanks much for the conversation tonight. >> Thanks to everybody who participated. Thanks to everybody watching online. Everybody have a great Tuesday. [music] >> [music]