The Bloomington City Council approved a plan Monday to split new state housing aid funds equally between homeownership programs and affordable housing development, Mayor Tim Busse announced in his weekly council summary.

The council passed a resolution allocating the city's annual Local Affordable Housing Aid funds, estimated at $1 million per year, with 50 percent supporting affordable homeownership programs and 50 percent for housing development and preservation. The state legislature created the funding source in 2023 through a seven-county metro area sales tax, with Bloomington receiving $567,000 in 2024. The Bloomington Housing and Redevelopment Authority will administer the funds and provide annual reports to the council.

The council also heard the Sustainability Commission's 2025 work plan, which focuses on five priorities: enhancing alternative transportation, incentivizing sustainable behavior, community education and engagement, policy review and updates, and ongoing outreach efforts. The commission is part of the city's annual board and commission work plan presentations.

Council members reviewed proposed franchise fee adjustments that would increase monthly residential fees from $5.95 to $6.88 per utility starting in 2026. The increases would fund two new categories: retaining wall repairs and sustainability programs including a city-wide home insulation loan program aimed at reducing heating costs and carbon emissions. Commercial properties would see similar increases.

The city will conduct community engagement through April, including a dedicated page on Let's Talk Bloomington and a public open house. A public hearing is scheduled for May 19 before final decisions are made, with any changes taking effect in January 2026.