The Bloomington City Council discussed proposed franchise fee increases Monday that would fund pavement management, retaining walls and new home energy efficiency programs.

The council approved routine business including appointments to the Local Board of Review and the Sustainability Commission's 2025-2026 work plan. Andrew Robinson, Jason Oliver and Marge Bates were appointed to serve on the Local Board of Review, which handles property assessment appeals.

Sustainability Commission Chair Angie Ghosh presented the commission's annual work plan, highlighting priorities including alternative transportation enhancement, sustainable behavior incentives and policy discussions with the council about the commission's role.

The major discussion centered on proposed franchise fee increases that would raise monthly utility bills by 93 cents per utility, bringing the total to $6.88 monthly for both Centerpoint Energy and Xcel Energy customers. The increases would fund existing pavement management programs, retaining wall repairs and a new $1 million sustainability initiative focused on home insulation loans.

Staff presented data showing over half of Bloomington's homes are under-insulated, creating opportunities for energy savings and carbon reduction. The proposed loan program would target middle-income households earning between 50% and 150% of area median income, with payback periods of six to 10 years. Council members expressed mixed reactions, with some questioning whether the city should subsidize private home improvements while others supported the community infrastructure investment approach. The council directed staff to conduct public engagement and schedule a public hearing for May before making final decisions.