StoryFranchise fees rate discussionJune 12, 2026

Bloomington Council debates utility fee structure, retaining wall funding

The Bloomington City Council met Tuesday evening to discuss how the city charges utility companies for operating in the city and how to fund repairs to over 500 deteriorating retaining walls. The meeting revealed disagreement among council members about whether to shift from flat-rate fees to percentage-based charges.

Published Jun 12, 2026

The council unanimously approved the meeting agenda 6-0, with Council Member Lman absent. The main focus was franchise fees—charges the city collects from utility companies like CenterPoint Energy and Xcel Energy for the right to operate in Bloomington.

City staff, led by Lori Economy Scher, presented a proposal to adjust how these fees are calculated. Currently, the city charges a flat rate. Staff suggested switching to a percentage-based system, but representatives from both utility companies warned this could create significant financial swings. According to the data presented, some commercial entities could see fee increases of up to $600,000 annually under a percentage-based model—what staff called "drastic variability."

Council Member Nelson questioned the rationale behind moving away from flat rates, while Council Member Dalisandro asked whether the city had previously discussed this approach. The Mayor and several council members said they had no memory of prior conversations about percentage-based rates, despite staff claims that such discussions had occurred.

A secondary issue involved funding for retaining wall maintenance. The city is proposing to allocate $200,000 annually from franchise fees toward replacing or maintaining the city's aging retaining walls. Council Member Carter supported this funding but questioned whether removing some structures might be more cost-effective than repairs. Council Member Dalisandro also raised questions about how this funding would be structured.

Late-arriving Council Member Lman asked whether nonprofit organizations could receive different franchise fee treatment than commercial entities. The council did not vote on any franchise fee changes or retaining wall funding during this meeting. The discussion suggests further deliberation is needed before any decisions are made on how Bloomington will charge utilities and fund infrastructure repairs.

Our proprietary artificial intelligence agent analyzed publicly available documents including meeting agendas, minutes, and transcripts to write this story to help inform local residents. Feedback helps us improve, so please consider rating how we did with the thumbs up or down below.

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Full analysis

Votes (1)

Approval of the agenda

Passed6-0 (Council Member Lman absent)

Moved by Mayor · Seconded by Dalisandro

People (10)

Lori Economy ScherCity Staff

Presented franchise fee history, financial considerations, and proposal for flat rate adjustments.

Bob SimonCity Staff

Presented technical details on pavement management programs, trails, and retaining wall conditions.

Julie LongCity Staff

Available for questions regarding franchise fees.

Cat KudsonRepresentative

Provided data on utility categories and fee modeling.

Scott JohnsonRepresentative

Provided technical explanation of electricity demand meters and commercial rate categories.

DalisandroCouncil Member

Seconded the motion to accept the agenda; questioned the nature of the franchise fee and retaining wall funding.

RelasCouncil Member

Accepted the agenda.

NelsonCouncil Member

Discussed the rationale behind percentage-based franchise fees vs flat rates.

CarterCouncil Member

Supported retaining wall funding and questioned cost-saving measures regarding structural removal.

LmanCouncil Member

Arrived late; questioned if nonprofit organizations could have separate franchise fee categories.

Places Mentioned

BloomingtonNormandale BoulevardOld Shakopee Road98th Street (between Xerxes and Upton)Nicollet AvenueNine Mile CreekWest Bush Lake Road

Events & Meetings (1)

  • (Monday, March 9th, 2026)
Source document

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Other Topics from This Document

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  • City manager performance evaluation

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