Bloomington Council Allocates $1M Housing Fund, Reviews Franchise Fees

General Interest
Meeting Date: Wednesday, March 19, 2025
Story generated: Oct 8, 2025
Focus: Council's allocation of state housing aid funds and proposed franchise fee increases

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.

This story was created by artificial intelligence (a large language model) based on the proceedings captured in the video below.

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Meeting Analysis

Mayor Tim Busse discusses three key topics from the March 17th City Council meeting: the allocation of new state Local Affordable Housing Aid (LAHA) funds totaling $1 million annually, the Sustainability Commission's 2025 work plan, and proposed franchise fee adjustments that would increase monthly residential fees from $5.95 to $6.88 starting in 2026.

Source Document
Focus: Original document text

[0:05] HELLO BLOOMINGTON. I’M MAYOR TIM BUSSE, AND THIS

IS THE COUNCIL MINUTE FOR THE WEEK OF MARCH 17TH.

[0:10] ON MONDAY NIGHT, THE CITY COUNCIL HAD A

GOOD DISCUSSION ABOUT HOW TO USE A NEW

[0:15] STATE REVENUE SOURCE CREATED SPECIFICALLY

TO PROVIDE HOUSING THAT PEOPLE CAN AFFORD.

[0:20] BACK IN 2023, THE MINNESOTA STATE LEGISLATURE

APPROVED A SALES AND USE TAX FOR THE SEVEN-COUNTY

[0:26] METRO AREA. REVENUES COLLECTED FROM THE TAX

ARE DISTRIBUTED TO CITIES AND COUNTIES AS

[0:32] LOCAL AFFORDABLE HOUSING AID, OR LAHA FOR SHORT.

LAHA FUNDS CAN SUPPORT A WIDE VARIETY OF PROJECTS,

[0:39] AND HOW THE FUNDS GET USED IS UP TO THE CITY.

BLOOMINGTON RECEIVED $567,000 OF LAHA IN 2024 AND

[0:47] THE BEST ESTIMATE IS THAT THE CITY WILL RECEIVE

AROUND A MILLION DOLLARS EACH YEAR GOING FORWARD.

[0:52] BLOOMINGTON HAS NO SHORTAGE OF AFFORDABLE HOUSING

ACTIVITIES THAT COULD BENEFIT FROM THIS FINANCIAL

[0:56] ASSISTANCE. BACK IN DECEMBER THE COUNCIL,

HRA, AND PORT AUTHORITY MET FOR A FACILITATED

[1:03] DISCUSSION ON HOW LAHA FUNDS COULD BE BEST USED.

STAFF CREATED A PROPOSAL FOR HOW TO USE LAHA

[1:10] BASED ON TAKEAWAYS FROM THAT DISCUSSION, AND THE

PROPOSAL WAS BROUGHT TO THE HRA AND PORT AUTHORITY

[1:15] IN FEBRUARY, AND TO THE CITY COUNCIL ON MONDAY.

THE PROPOSAL, APPROVED BY RESOLUTION OF THE CITY

[1:21] COUNCIL, SPLITS OUR ANNUAL LAHA FUNDS –

50 PERCENT FOR AFFORDABLE HOMEOWNERSHIP

[1:27] PROGRAMS AND 50 PERCENT FOR AFFORDABLE

HOUSING DEVELOPMENT AND PRESERVATION.

[1:32] SO, WHAT DOES THAT LOOK LIKE IN PRACTICE?

FOR HOMEOWNERSHIP, THIS COULD MEAN HELPING

[1:37] FAMILIES MAKE THEIR DOWN PAYMENT ON A

NEW HOME, OR SUPPORTING THE DEVELOPMENT

[1:41] OF NEW AFFORDABLE SINGLE-FAMILY HOMES.

FOR HOUSING DEVELOPMENT AND PRESERVATION,

[1:46] THIS COULD BE REHABILITATION OF EXISTING

AFFORDABLE HOUSING TO KEEP IT IN GOOD CONDITION,

[1:50] OR FUNDING NEW HOUSING DEVELOPMENTS

THAT ALIGN WITH THE CITY’S GOALS.

[1:54] THE BLOOMINGTON HRA WILL ADMINISTER

THESE FUNDS AND REPORT TO THE COUNCIL

[1:58] EACH YEAR. I’M EXCITED THAT THESE FUNDS

WILL BE PUT TO WORK IN BLOOMINGTON TO

[2:03] SUPPORT HOUSING THAT PEOPLE CAN AFFORD.

ALSO ON MONDAY NIGHT, OUR CITY’S SUSTAINABILITY

[2:08] COMMISSION PRESENTED ITS WORK PLAN FOR 2025.

AS YOU’VE HEARD ME SAY OVER THE PAST FEW WEEKS,

[2:13] EACH CITY BOARD AND COMMISSION COMES IN FRONT

OF THE COUNCIL ANNUALLY TO PRESENT THEIR WORK

[2:17] PLAN FOR THE COMING YEAR. WE’VE BEEN WORKING OUR

WAY THROUGH OUR BOARDS AND COMMISSIONS OVER THE

[2:22] PAST FEW WEEKS, AND IT WAS NICE TO HEAR FROM

THE SUSTAINABILITY COMMISSION ON MONDAY NIGHT.

[2:26] IN 2025, THE SUSTAINABILITY COMMISSION WILL FOCUS

ON FIVE KEY PRIORITIES TO MAKE BLOOMINGTON A

[2:32] GREENER, MORE RESILIENT COMMUNITY. THE COMMISSION

AIMS TO ENHANCE ALTERNATIVE TRANSPORTATION,

[2:38] INCENTIVIZE SUSTAINABLE BEHAVIOR, EDUCATE AND

ENGAGE THE COMMUNITY, REVIEW AND UPDATE POLICIES,

[2:44] AND SUPPORT ONGOING OUTREACH AND EDUCATION.

THE SUSTAINABILITY COMMISSION IS ONE OF THE

[2:49] MORE HANDS-ON COMMISSIONS HERE IN BLOOMINGTON

AND THE IMPORTANT WORK THEY DO HELPS ENHANCE

[2:54] RESIDENTS' QUALITY OF LIFE, PROTECT OUR CITY'S

NATURAL RESOURCES, AND ENSURE LONG-TERM ECONOMIC

[3:00] AND ENVIRONMENTAL RESILIENCE. THE CITY COUNCIL

FULLY SUPPORTS THE COMMISSION’S AMBITIOUS PLAN

[3:05] AND LOOKS FORWARD TO SEEING THESE INITIATIVES

DRIVE POSITIVE CHANGE ACROSS OUR COMMUNITY.

[3:10] FRANCHISE FEES HAVE BEEN A CRITICAL PART

OF FUNDING INFRASTRUCTURE IMPROVEMENTS IN

[3:14] BLOOMINGTON SINCE 2016. ORIGINALLY IMPLEMENTED

TO SUPPORT STREET OVERLAYS, SEAL COATING,

[3:20] AND TRAIL MAINTENANCE, THESE FEES HAVE HELPED

KEEP OUR ROADWAYS AND PATHWAYS IN GOOD CONDITION.

[3:26] AND BECAUSE A VISUAL IS ALWAYS NICE, HERE

IS A MAP SHOWING THE STREETS THAT HAVE BEEN

[3:31] SEALCOATED SINCE 2016, AND THIS MAP SHOWS THE

STREETS THAT HAVE HAD OVERLAYS DONE SINCE 2016.

[3:38] DOING THIS KIND OF PREVENTATIVE MAINTENANCE

WORK AND UPKEEP KEEPS BLOOMINGTON STREETS

[3:43] IN GOOD CONDITION AND HELPS EXTEND THE LIFE OF

THE PAVEMENT. FRANCHISE FEES PAY FOR THIS WORK

[3:49] AND THERE’S NO DOUBT IT’S MONEY WELL SPENT.

AT MONDAY'S MEETING, WE REVIEWED POTENTIAL

[3:54] ADJUSTMENTS TO FRANCHISE FEES FOR 2026 AND BEYOND.

A KEY PART OF THIS DISCUSSION WAS THE INTRODUCTION

[4:01] OF TWO NEW FUNDING CATEGORIES – RETAINING WALLS

AND SUSTAINABILITY AND ENERGY EFFICIENCY. IN A

[4:07] NUTSHELL, BLOOMINGTON HAS A LOT OF RETAINING

WALLS IN THE CITY THAT ARE IN NEED OF REPAIR,

[4:12] AND THIS WOULD BE A FUNDING SOURCE TO HELP DO

THAT WORK. FROM THE ENERGY EFFICIENCY SIDE,

[4:16] STAFF PROPOSED A CITY-WIDE LOAN PROGRAM

THAT WOULD HELP HOMEOWNERS ADD INSULATION

[4:21] TO ATTICS AND IN THEIR WALLS. THE GOAL IS TO

REDUCE HOME HEATING COSTS, CARBON EMISSIONS,

[4:27] AND STRESS ON THE ELECTRICAL GRID.

WITH THESE PROPOSED ADJUSTMENTS,

[4:31] MONTHLY RESIDENTIAL FRANCHISE FEES WOULD RISE

FROM $5.95 TO $6.88 PER UTILITY STARTING IN 2026,

[4:40] WITH SIMILAR INCREASES FOR COMMERCIAL PROPERTIES.

WE’VE NOTIFIED AREA MANAGERS AT CENTERPOINT AND

[4:45] XCEL ABOUT THESE PROPOSED CHANGES, AND NOW WE

WANT TO HEAR FROM YOU. COMMUNITY ENGAGEMENT

[4:50] WILL TAKE PLACE THROUGH APRIL, INCLUDING A

DEDICATED PAGE ON LET’S TALK BLOOMINGTON THAT

[4:55] WILL BE LIVE SOON AND A PUBLIC OPEN HOUSE. THE

COUNCIL WILL HOLD A PUBLIC HEARING ON MAY 19,

[5:01] BEFORE FINAL DECISIONS ARE MADE. ANY CHANGES

WOULD TAKE EFFECT STARTING IN JANUARY 2026.

[5:07] WE HAVE A LOT OF WORK TO DO ENSURE A

BALANCED AND SUSTAINABLE FUNDING MODEL

[5:11] FOR BLOOMINGTON’S FUTURE. PLEASE STAY ENGAGED

IN THIS DISCUSSION, ASK QUESTIONS, AND SHARE

[5:17] YOUR INPUT AS WE WORK THROUGH BOTH THIS

FRANCHISE FEE DISCUSSION, AND THE LARGER

[5:22] DISCUSSION OF BLOOMINGTON’S FINANCIAL FUTURE.

THAT WRAPS UP THIS WEEK’S COUNCIL MINUTE.

[5:27] THANKS FOR TUNING IN, AND UNTIL

NEXT TIME, STAY SAFE, BLOOMINGTON!

This story was created by artificial intelligence (a large language model) based on the proceedings captured in the video below.

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