[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.