StoryBond approval and franchise fee rejection as primary financial decisionsJuly 15, 2025

Bloomington Council Approves $91.6M Bonds, Rejects Franchise Fee Hikes

Meeting date: Jul 15, 2025
Published Aug 23, 2025

The Bloomington City Council approved $91.6 million in bond sales Monday to fund the Community Health and Wellness Center while rejecting proposed franchise fee increases and voting down a controversial sidewalk plowing reduction plan.

The council unanimously approved two bond series: $63.5 million in sales tax revenue bonds and $28.1 million in general obligation bonds. Chief Financial Officer Laurie Economy Scholer reported strong market response with 15 bidders for one series, calling it "a record for the city." The bonds received favorable interest rates of 4.21% and 3.92% respectively, both lower than anticipated.

Council members voted 7-0 to maintain current franchise fee rates for both Xcel Energy and CenterPoint Energy, directing staff to return in spring 2026 with future fee analysis. The fees currently generate $8.2 million annually for road maintenance and infrastructure projects. One resident criticized the fees as representing 10-15% of typical property tax bills, calling them "a huge burden."

The council also received updates on the $37.2 million Ice Garden renovation, which remains on schedule for an October 1 opening. Deputy Parks Director Via Hughes showcased construction progress including completed ice rink floors, new ammonia cooling systems, and expanded locker facilities.

In the evening's most contentious debate, the council rejected a staff proposal to reduce residential sidewalk plowing services. The plan would have focused city crews on high-traffic areas while requiring residents to clear neighborhood sidewalks. Staff cited safety concerns for operators working 12-hour shifts and estimated $100,000 in annual savings, but council members expressed concerns about community impact and enforcement challenges.

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Areas of Interest (4)

  • City of Bloomington successfully sells over $90M in bonds with record-breaking investor turnout.
  • Proposed franchise fee hike for 2026 to fund retaining walls and climate-focused home energy programs.
  • Internal city audit identifies $200k-$300k in savings within the Pavement Management Program.
  • Sustainability debate: Should franchise fees be used to subsidize private home insulation upgrades?

Votes (4)

Approval of tonight's agenda

Passed7-0

Moved by Mayor · Seconded by Councilmember Carter

Accept consent business items 3.1 through 3.13

Passed7-0

Moved by Councilmember Lowman · Seconded by Councilmember

Adopt resolution authorizing issuance of Sales Tax Revenue Bonds Series 2025 A

Passed7-0

Moved by Councilmember Dallessandro · Seconded by Councilmember

Adopt resolution authorizing issuance of General Obligation Sales Tax Revenue Bonds Series 2025 B

Passed7-0

Moved by Councilmember Dallessandro · Seconded by Councilmember

Notable Quotes (2)

These are to fully fund the bond portion that the council and the residents are authorized per our sales tax referendum $100 million for this project.

— Lori Economy-Scholer
Bond SalesClarifying the purpose of the bond sales for the Community Health and Wellness Center.

15 bidders today was I think a record for the city.

— Elizabeth Bergman
Bond SalesDescribing the high level of investor interest in Bloomington bonds.

People (5)

Declan MonahanBoy Scout

Member of Troop 374 attending to work on a merit badge.

Lori Economy-ScholerCFO

Presented financial data regarding bond sales and franchise fee revenue options.

Elizabeth BergmanRepresentative

Explained the bond marketing process to potential investors.

Bob SimonsSenior Civil Engineer

Presented on franchise fees, pavement management, and sustainability goals.

Julie LongCity Engineer

Assisted with the presentation regarding infrastructure and franchise fees.

Places Mentioned

Bloomington City Hall ChambersBloomington Ice GardenNormandale BoulevardOld Shakopee RoadBryant ParkCentral Park

Events & Meetings (2)

  • July 14, 2025: City Council Meeting
  • April 17, 2025: Franchise Fee Open House

Ordinances & Resolutions (3)

2025 A

Resolution authorizing issuance of $63,500,000 in Sales Tax Revenue Bonds.

2025 B

Resolution authorizing issuance of $28,125,000 in General Obligation Sales Tax Revenue Bonds.

Chapter 20

Ordinances amending CenterPoint Energy and Xcel Energy franchise fees.

Source document

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Other Topics from This Document

  • Approval of City Council agenda

  • Consent business (13 items)

  • Resolution awarding sale of taxable sales tax revenue bonds series 2025 A and B

  • Public hearing on ordinances amending Chapter 20 (CenterPoint Energy and Xcel Energy franchise fees)

  • Update on Bloomington Ice Garden construction

  • Sidewalk plowing reduction evaluation plan

  • City Council policy and issue update

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