The Bloomington City Council narrowed franchise fee increase options to three choices during a study meeting Monday, setting the stage for public hearings on funding retaining walls and sustainability projects.

Council members directed staff to prepare public hearing materials for Option A (no increase), Option B (23-cent monthly increase for retaining walls only), and Option E ($1.86 monthly increase for both retaining walls and sustainability projects). The increases would apply per household per utility, affecting both residential and commercial customers.

City Engineer Julie Long told the council that current retaining wall funding of $45,000 annually cannot address the city's needs, with one upcoming project on 90th Street estimated between $800,000 and $900,000. The proposed retaining wall funding would provide $250,000 annually through franchise fees, which are paid by all utility customers including tax-exempt properties like schools and churches.

Sustainability Coordinator Emma Dross outlined plans for a $1 million annual program to finance residential energy efficiency improvements, including attic insulation, wall insulation and high-efficiency appliances. The program would address an estimated 100-year timeline to complete energy upgrades citywide at the current pace. Staff research found 20 cities offer similar energy financing programs, with some communities reporting significant private investment leveraged by public funding.

The council also received an update on federal grant dependencies totaling over $20 million annually, including $6.5 million for Section 8 housing vouchers, $2.6 million for WIC nutrition programs, and $7 million in fire department SAFER grants. Staff outlined potential strategies if federal funding is reduced, including using city levy funds and adjusting capital improvement timelines.