Bloomington approves 9.2% tax increase for 2025 budget
The Bloomington City Council approved an 11.5% preliminary tax levy on Wednesday, translating to a 9.2% property tax increase for homeowners. The decision prioritizes public safety and city services while launching community discussions that will continue through December.
The council's approval of the preliminary tax levy and 2025 budget means homeowners with median-value properties will pay about $131 more in annual property taxes. Mayor Tim Busse explained that this preliminary levy represents the maximum amount the city can collect under state law—the council can lower it later but cannot raise it.
The budget reflects Bloomington's spending priorities. Personnel costs consume 75% of the city's general fund, with police and fire departments receiving the largest share of new spending. Of the $9.2 million total budget increase, more than $6 million—roughly two-thirds—will go to public safety. "For years, the Council has heard that Public Safety is the top priority of this community," Busse said, explaining the allocation.
In other business, the council received an encouraging update on affordable housing. Since adopting the Opportunity Housing Ordinance in 2019, Bloomington has added 693 affordable units toward a regional goal of 842 units by 2030. That represents 82% of the target with five years remaining. The ordinance requires developers to include affordable units in new housing projects and offers incentives like density bonuses. Busse emphasized the philosophy behind the effort: "If someone works in Bloomington, they should be able to afford to live in Bloomington."
The council also congratulated Scramblin' Eggs, a restaurant concept by Grant Veitenheimer and Nick Peterson, as the winner of the inaugural Hatch Bloomington Contest. The business received a $100,000 prize to open a permanent location in the city. The contest drew 60 applicants and featured public pitches and community voting, generating significant local engagement.
The budget discussion will continue through December, culminating in a Truth in Taxation Hearing where the council will finalize the levy amount. Community members interested in the budget process can expect more detailed discussions in the coming months.
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Votes (3)
Approval of Preliminary Tax Levy and 2025 Proposed Budget
The Council approved an 11.5% preliminary tax levy increase for 2025, leading to a 9.2% increase in taxes for a median value home. Key revenue sources include lodging and admission taxes, while permit revenues are decreasing. Major expenditure drivers are personnel costs (75% of the General Fund) and public safety (Police and Fire), with over two-thirds of the proposed budget increase allocated to these services. The preliminary levy represents the maximum amount that can be collected, with further detailed discussions planned until December, culminating in the Truth in Taxation Hearing.
Annual Update on Opportunity Housing Ordinance
The Council received an annual update on the Opportunity Housing Ordinance, which mandates affordable units in new housing and provides incentives like density bonuses. Established in 2019, the ordinance has enabled Bloomington to add 693 new affordable units, achieving 82% of the Metropolitan Council's 2030 goal of 842 units with five years remaining. The Mayor emphasized providing 'housing that people can afford' and the need to address deeply affordable housing (50-30% AMI) and affordable home ownership in future efforts.
Hatch Bloomington Contest Winner Congratulated
Mayor Tim Busse officially congratulated Scramblin’ Eggs, a restaurant concept by Grant Veitenheimer and Nick Peterson, for winning the first Hatch Bloomington Contest. They received a $100,000 prize to open a permanent location in Bloomington. The contest engaged 60 applicants, featured public pitches, and community voting, generating significant buzz and positive media attention, marking it as a successful program for stimulating local business and community involvement.
Notable Quotes (8)
About 75 percent of Bloomington’s General Fund budget goes to personnel costs.
For years, the Council has heard that Public Safety is the top priority of this community.
The proposed increase in the budget for 2025 is $9.2 million. More than $6 million – or two thirds of the proposed budget increase – would go to Police and Fire.
According to state law, the preliminary levy set on Monday night is the maximum amount the City can collect through property taxes for the coming year. The Council can lower that number but can’t raise it for 2025.
Back in 2019, Bloomington adopted an Opportunity Housing Ordinance focused on providing, maintaining, and encouraging housing for all people.
Each decade, the Metropolitan Council sets affordable housing goals for each community in the Twin Cities. The goal for Bloomington is to add 842 new affordable housing units by 2030. That goal was set in 2020 and since then...Bloomington had added 693 new affordable units. That’s about 82 percent of the 2030 goal and we still have five years left in the decade.
Because if someone works in Bloomington, they should be able to afford to live in Bloomington.
Personally, I think Hatch Bloomington was a huge success. Sixty applicants brought their best ideas forward. They had a chance to make their pitches publicly and got feedback and advice on their business plans.
Ordinances & Resolutions (4)
Approved starting point for the city's property tax collection for the coming year, setting the maximum amount.
The financial plan corresponding to the preliminary tax levy, outlining projected revenues and expenditures for the upcoming fiscal year.
Local regulation adopted in 2019 requiring developers to provide affordable units in new or substantially rehabilitated multi-family housing projects.
A fund used to support the creation and preservation of affordable housing units in Bloomington.
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Other Topics from This Document
Opportunity Housing Ordinance Annual Update
Hatch Bloomington Contest Winner Announcement
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