[0:06] HELLO BLOOMINGTON. I’M MAYOR TIM BUSSE AND THIS  IS THE COUNCIL MINUTE FOR THE WEEK OF SEPTEMBER 8.  [0:11] ON MONDAY NIGHT, THE COUNCIL APPROVED  BLOOMINGTON’S PRELIMINARY TAX LEVY AND   [0:15] PROPOSED BUDGET FOR 2025. IT’S SOMETHING WE DO  EVERY YEAR ABOUT THIS TIME AND IT SERVES AS A   [0:20] STARTING POINT FOR OUR COMMUNITY DISCUSSION. THE COUNCIL APPROVED A PRELIMINARY TAX LEVY   [0:25] INCREASE OF 11.5 PERCENT  AND A PROPOSED 2025 BUDGET   [0:30] THAT CORRESPONDS TO THE PRELIMINARY LEVY.  THAT TRANSLATES INTO A 9.2 PERCENT INCREASE   [0:35] IN TAXES FOR A MEDIAN VALUE HOME AND WOULD EQUATE  TO AN ANNUAL INCREASE OF $131, OR $2.53 PER WEEK.  [0:44] LIKE ANY BUDGET DISCUSSION, IT’S  IMPORTANT TO FRAME UP THE CONVERSATION   [0:47] BASED ON REVENUES AND EXPENDITURES. ON THE REVENUE SIDE, THE CITY CONTINUES   [0:52] TO SEE INCREASES IN OUR COLLECTIONS FROM  LODGING AND ADMISSION TAXES. IN BOTH CASES,   [0:58] WE’RE AT OR ABOVE 2019 LEVELS WHICH TELLS ME THAT  OUR HOSPITALITY INDUSTRY IS BACK TO PRE-PANDEMIC   [1:03] NUMBERS. THAT’S GOOD NEWS. THE CITY COLLECTS ABOUT  $10 MILLION EACH YEAR FROM THOSE TWO SOURCES SO   [1:10] IT’S A SIGNIFICANT SOURCE OF REVENUE. ON THE FLIP  SIDE, WE’LL SEE A DECREASE AGAIN THIS YEAR IN   [1:15] REVENUES FROM PERMITS. THAT’S THE RESULT OF FEWER  BIG CONSTRUCTION PROJECTS UNDERWAY IN THE CITY.  [1:21] FROM AN EXPENDITURE PERSPECTIVE, THE TWO  BIGGEST EXPENSE DRIVERS ARE VERY SIMILAR   [1:26] TO WHAT THEY HAVE BEEN IN RECENT YEARS AND  THEY’RE BOTH RELATED TO CITY SERVICES THAT   [1:30] RESIDENTS HAVE COME TO EXPECT FROM BLOOMINGTON. CITY GOVERNMENTS ARE IN THE SERVICE INDUSTRY.   [1:36] THE CITY OF BLOOMINGTON DOES NOT MAKE THINGS BUT  INSTEAD PROVIDES SERVICES LIKE POLICE AND FIRE   [1:41] PROTECTION, SNOW PLOWING, PARK MAINTENANCE,  WATER DELIVERY, AND MANY OTHERS. FOR DECADES,   [1:47] BLOOMINGTON RESIDENTS HAVE MADE IT CLEAR THAT  HIGH QUALITY CITY SERVICES ARE A PRIORITY AND   [1:53] I AGREE THAT’S HOW IT SHOULD BE. SO  THE CITY PAYS A COMPETITIVE WAGE TO   [1:58] THE OUTSTANDING EMPLOYEES WHO PROVIDE THOSE  HIGH QUALITY SERVICES AND THAT COSTS MONEY.  [2:03] ABOUT 75 PERCENT OF BLOOMINGTON’S GENERAL FUND  BUDGET GOES TO PERSONNEL COSTS. AND YOU WON’T   [2:09] BE SURPRISED TO HEAR THAT THE PUBLIC SECTOR IS  A VERY TIGHT JOB MARKET RIGHT NOW. COMPETITIVE   [2:14] SALARIES AND BENEFITS ARE NEEDED TO ATTRACT  AND RETAIN THE GREAT EMPLOYEES WHO PROVIDE   [2:19] THE SERVICES YOU’VE COME TO EXPECT. AND ON THE TOPIC OF SERVICES WE’VE ALL   [2:24] COME TO EXPECT, BLOOMINGTON’S INVESTMENTS IN  PUBLIC SAFETY ARE ALSO A MAJOR EXPENSE DRIVER.   [2:30] FOR YEARS, THE COUNCIL HAS HEARD THAT PUBLIC  SAFETY IS THE TOP PRIORITY OF THIS COMMUNITY.   [2:35] INVESTMENTS MADE IN RECENT YEARS AND PROPOSED FOR  2025 SUPPORT THAT. YOU ALL KNOW WE HAVE ONE OF THE   [2:42] BEST – IF NOT THE BEST – POLICE DEPARTMENTS  IN MINNESOTA. WE’RE BUILDING A LONG-OVERDUE   [2:47] FIRE DEPARTMENT THAT IS A COMBINATION OF  FULL-TIME AND PAID ON-CALL FIRE FIGHTERS.   [2:51] THESE ARE SIGNIFICANT INVESTMENTS. OF THE  PROPOSED 11.5 PERCENT INCREASE IN THE TAX LEVY,   [2:57] ALMOST SEVEN AND A HALF PERCENT WOULD GO TOWARD  POLICE AND FIRE. IF YOU PREFER RAW NUMBERS; THE   [3:03] PROPOSED INCREASE IN THE BUDGET FOR 2025 IS $9.2  MILLION. MORE THAN $6 MILLION – OR TWO THIRDS OF   [3:10] THE PROPOSED BUDGET INCREASE – WOULD GO TO POLICE  AND FIRE. THIS COMMUNITY HAS MADE IT CLEAR THAT   [3:17] PUBLIC SAFETY IS A TOP PRIORITY AND ONCE AGAIN  THIS YEAR, THE PROPOSED BUDGET REFLECTS THAT.  [3:23] ACCORDING TO STATE LAW, THE PRELIMINARY LEVY  SET ON MONDAY NIGHT IS THE MAXIMUM AMOUNT THE   [3:28] CITY CAN COLLECT THROUGH PROPERTY TAXES FOR THE  COMING YEAR. THE COUNCIL CAN LOWER THAT NUMBER   [3:33] BUT CAN’T RAISE IT FOR 2025. AND IT’S JUST THE  START OF AN IN-DEPTH CONVERSATION. JUST ABOUT   [3:40] EVERY COUNCIL MEETING BETWEEN NOW AND DECEMBER  WILL INCLUDE DETAILED BUDGET DISCUSSIONS. I   [3:45] ENCOURAGE YOU TO TUNE IN IF YOU WANT TO BETTER  UNDERSTAND THE PROCESS AND HEAR THE THOUGHTFUL   [3:50] CONVERSATIONS ABOUT THE MOST IMPORTANT WORK WE DO  AS A COUNCIL. I’D ALSO ENCOURAGE YOU TO VISIT THE   [3:56] CITY’S BUDGET WEBSITE. IT INCLUDES GREAT DETAILS  ON BACKGROUND, THE PROCESS, AND PUBLIC ENGAGEMENT.   [4:02] ALL OF THIS WORK WILL CULMINATE ON DECEMBER  16 AT THE CITY’S TRUTH IN TAXATION HEARING.  [4:08] ALSO ON MONDAY, THE COUNCIL  RECEIVED THE ANNUAL UPDATE ON THE   [4:11] CITY’S OPPORTUNITY HOUSING ORDINANCE. SOME QUICK BACKGROUND; BACK IN 2019,   [4:16] BLOOMINGTON ADOPTED AN OPPORTUNITY HOUSING  ORDINANCE FOCUSED ON PROVIDING, MAINTAINING,   [4:22] AND ENCOURAGING HOUSING FOR ALL PEOPLE. THIS  ORDINANCE REQUIRES DEVELOPERS OF NEW HOUSING AND   [4:28] ANYONE DOING SUBSTANTIAL MULTI-FAMILY HOUSING  REHABILITATION PROJECTS TO PROVIDE A MINIMUM   [4:33] NUMBER OF AFFORDABLE UNITS. THE ORDINANCE PROVIDES  A VAREITY OF INCENTIVES TO ADD AFFORDABLE UNITS,   [4:39] SUCH AS DENSITY BONUSES OR TAX INCREMENT FINANCING  AND THE GOAL IS TO INCREASE THE SUPPLY OF   [4:45] AFFORDABLE HOUSING UNITS THROUGHOUT THE CITY. WE HEARD VERY CLEARLY ON MONDAY THAT THE   [4:49] OPPORTUNITY HOUSING ORDINANCE HAS  BEEN EFFECTIVE AND SUCCESSFUL.  [4:53] EACH DECADE, THE METROPOLITAN COUNCIL SETS  AFFORDABLE HOUSING GOALS FOR EACH COMMUNITY   [4:57] IN THE TWIN CITIES. THE GOAL FOR BLOOMINGTON  IS TO ADD 842 NEW AFFORDABLE HOUSING UNITS BY   [5:04] 2030. THAT GOAL WAS SET IN 2020 AND SINCE  THEN 15 MULTI-FAMILY HOUSING PROJECTS HAVE   [5:11] BEEN COMPLETED OR ARE UNDERWAY IN BLOOMINGTON.  BECAUSE OF THE FLEXIBILITY AND INCENTIVES IN THE   [5:17] OPPORTUNITY HOUSING ORDINANCE AND BECAUSE OF  BLOOMINGTON’S AFFORDABLE HOUSING TRUST FUND,   [5:22] AS OF MONDAY NIGHT BLOOMINGTON HAD ADDED 693 NEW  AFFORDABLE UNITS. THAT’S ABOUT 82 PERCENT OF THE   [5:30] 2030 GOAL AND WE STILL HAVE FIVE YEARS LEFT IN  THE DECADE. THAT’S SOMETHING TO BE PROUD OF.  [5:36] I’VE SAID IN THE PAST THAT I DON’T LIKE THE  TERM AFFORDABLE HOUSING. I THINK IT STEREOTYPES   [5:41] OR PIEGONHOLES PEOPLE WHO LIVE IN AFFORDABLE  HOUSING IN WAYS THAT ARE PREJUDICIAL AND HARMFUL,   [5:47] OR FLAT OUT WRONG. I PREFER TO USE  THE PHRASE HOUSING THAT PEOPLE CAN   [5:52] AFFORD - AND LET ME PROVIDE SOME CONTEXT FOR THAT. A KEY METRIC USED TO DETERMINE THE AFFORDABILITY   [5:58] OF HOUSING IS AREA MEDIAN INCOME OR AMI. THE  AMI FOR THE TWIN CITIES IN 2024 IS $124,000.   [6:08] THAT’S THE MEDIAN, SO HALF OF HOUSEHOLDS  EARN MORE THAN $124,000 AND HALF EARN LESS.  [6:14] FOR HOUSING POLICY, INCOME LEVELS SET RELATIVE  TO THE AREA MEDIAN INCOME – FOR EXAMPLE   [6:20] 80 PERCENT OF AMI – IDENTIFY HOUSEHOLDS  ELIGIBLE TO LIVE IN AFFORDABLE HOUSING.  [6:26] BUT WHEN YOU DO THE MATH, YOU SEE THAT HOUSEHOLDS  AT 80 PERCENT OF AMI ARE MAKING $97,800 EACH YEAR.   [6:35] HOUSEHOLDS AT 60 PERCENT OF AREA MEDIAN  INCOME ARE MAKING MORE THAN $74,000 EACH   [6:42] YEAR. THESE FOLKS ARE OUR TEACHERS, PEOPLE ON  THE PRODUCTION LINES OF OUR TECH COMPANIES,   [6:48] OR PEOPLE IN OUR HOSPITALITY INDUSTRY.  BLOOMINGTON’S OPPORTUNITY HOUSING ORDINANCE   [6:53] HELPS CREATE HOUSING THAT THESE PEOPLE CAN AFFORD,  BECAUSE IF SOMEONE WORKS IN BLOOMINGTON, THEY   [6:59] SHOULD BE ABLE TO AFFORD TO LIVE IN BLOOMINGTON. BLOOMINGTON STILL HAS WORK TO DO. WE NEED MORE   [7:05] HOUSING FOR PEOPLE AT DEEPLY AFFORDABLE LEVELS  INCLUDING HOUSEHOLDS AT 50 OR 30 PERCENT AMI, AND   [7:09] WE NEED TO FIND A PATH TOWARD AFFORDABLE HOME  OWNERSHIP. BUT BLOOMINGTON’S OPPORTUNITY HOUSING   [7:15] ORDINANCE HAS BEEN A SUCCESSFUL PROGRAM THAT  IS DOING EXACTLY WHAT IT WAS INTENDED TO DO.  [7:21] AND FINALLY TODAY, BECAUSE OF THE WAY THE  SCHEDULE HAS WORKED OUT, I HAVEN’T HAD A   [7:25] CHANCE YET TO CONGRATULATE SCRAMBLIN’ EGGS, THE  WINNER OF THE INAUGURAL HATCH BLOOMINGTON CONTEST.  [7:30] SCRAMBLIN’ EGG IS A RESTAURANT CONCEPT  DEVELOPED BY FOOD TRUCK OWNERS GRANT   [7:34] VEITENHEIMER AND NICK PETERSON. I’M SURE YOU’VE  SEEN THEM AROUND TOWN OR AT THE FARMERS MARKET.  [7:39] AFTER THREE ROUNDS OF PITCHES TO JUDGES  AND TWO ROUNDS OF COMMUNITY VOTING,   [7:43] SCRAMBLIN’ EGGS WAS NAMED THE WINNER OF THE  $100,000 TOP PRIZE. GRANT AND NICK PLAN TO USE   [7:49] MONEY TO ESTABLISH A PERMANENT BRICK-AND-MORTAR  LOCATION IN BLOOMINGTON AND THEY SAY THAT   [7:53] THE BLOOMINGTON LOCATION IS JUST THE START. PERSONALLY, I THINK HATCH BLOOMINGTON WAS A HUGE   [7:58] SUCCESS. SIXTY APPLICANTS BROUGHT THEIR BEST IDEAS  FORWARD. THEY HAD A CHANCE TO MAKE THEIR PITCHES   [8:04] PUBLICLY AND GOT FEEDBACK AND ADVICE ON THEIR  BUSINESS PLANS. THE COMMUNITY HAD A CHANCE TO   [8:08] WEIGH IN THROUGH TWO ROUNDS OF ON-LINE VOTING AND  THE COMPETITION CERTAINLY GENERATED A LOT OF BUZZ   [8:13] AROUND TOWN. IT’S GREAT TO SEE SCRAMBLIN’ EGGS  GETTING A TON OF ATTENTION FROM THE TWIN CITIES   [8:18] MEDIA. AND I’VE TALKED TO A HALF DOZEN MAYORS WHO  WOULD LOVE TO DO SOMETHING SIMILAR IN THEIR CITY.  [8:24] CONGRATS TO SCRAMBLIN’ EGGS AND TO EVERYONE WHO  STEPPED UP AND PARTICIPATED IN HATCH BLOOMINGTON.   [8:30] THANKS TO OUR JUDGES, BLOOMINGTON CITY  STAFF, AND THE MINNEAPOLIS REGIONAL   [8:34] CHAMBER FOR THEIR HARD WORK ON THIS. AND  THANKS TO YOU FOR YOUR EXCITEMENT AND   [8:38] ENTHUSIASM AROUND THIS UNIQUE PROGRAM. THAT WILL DO IT FOR THIS WEEK’S COUNCIL   [8:43] MINUTE. THANKS SO MUCH FOR JOINING ME TODAY.  UNTIL NEXT TIME, STAY SAFE BLOOMINGTON.