Bloomington City Council Study Meeting: 2027–2036 CIP and External Services Budgets (October 19, 2026)

On Monday, October 19, 2026, the Bloomington City Council held a study session to review the draft 2027–2036 Capital Improvement Plan (CIP) and 2027–2028 budget requests for external services departments. The council approved the agenda 7-0 and heard staff presentations; no substantive decisions were made.

Capital Improvement Plan Review

• CIP staff presented the annual 10-year CIP, a planning tool covering capital projects over $50,000 expected to begin during the plan period. It is aligned with strategic priorities for a connected and welcoming community, a healthy community, and equitable economic growth.
• Category totals included surface transportation at $275 million, sewer/water/storm at $177 million, South Loop at just under $100 million, park development at about $70 million, and housing and redevelopment authority at just under $4 million.
• The 2027–2028 portion contains 90 projects totaling about $260 million, including $75 million for the water park parking ramp and $45 million in bonding; a large portion is in the South Loop.
• Staff noted debt-related future projects including Fire Station 2 rebuild, Dwan Clubhouse, animal shelter, pavement management, and water park financing/parking ramp. There are 35 new projects listed for 2027.
• A councilmember asked whether projects had changed since last year; staff said bonding projects remained the same except for inflation and pricing. The animal shelter estimate moved from about $5 million to $7 million due to inflation, and its feasibility study is underway. Another councilmember asked for follow-up on Bri Park and on the Bloomington Center for the Arts business plan; staff committed to follow up.
• The mayor emphasized the CIP is a planning document, not a funding commitment; projects require future council approval and funding. Final CIP consideration is scheduled for December 7.

External Services Team Budgets

• Deputy City Manager Kathy Hadeen introduced the external services team, which accounts for about 90% of the city’s general fund budget. External services 2027 expenditures are projected at $116.3 million (+7.26%), with a net general fund impact of $91.4 million (+8%). For 2028, expenditures are projected at $120.9 million (+3.97%), with a net general fund impact of $97.8 million (+7% over 2027); 2028 revenues are expected to decline by about 1.8%, partly due to the SAFER grant ending. Personnel is 71% of the external services budget.

Public Works

• Public Works has 164 employees. General fund expenditures increase 4.5% in 2027 and 2.8% in 2028, with over $200,000 in reductions. New investments include $150,000 annually for climate action plan implementation.
• Utility funds show combined expenditure increases of 5.5% in 2027 and 9.3% in 2028, driven by capital, materials, and debt service. Proposed utility rate increases are 3% for water, 9% for wastewater, 4% for stormwater, and 4% for solid waste. The wastewater increase is tied to the North Central Sanitary Sewer Project; no curbside cleanup in 2027 helps offset costs.
• A councilmember asked about the projected decline in public works general fund revenue; staff attributed it largely to the fiber buildout reducing expected revenue.
• Accomplishments highlighted included $4 million in state bonding for the North Central Sanitary Sewer Project, construction of a fleet garage and salt storage facility, $600,000 in federal funding for the Normandale Boulevard Sidewalk and Trail Project, and delisting Highland Lake from the impaired waters list.

Police Department

• Police Chief Booker Hodges said the department’s net general fund impact rises about 3.92%, with salary and benefits up 3.73% and materials, supplies, and internal services up 3.55%. Reductions of $34,000 offset a $545,000 increase, leaving a $510,000 total increase, about $500,000 of which is the Axon contract.
• He compared staffing with Rochester (161 officers, about 123,000 residents) and Duluth (156 officers, 88,000 residents) versus Bloomington’s 133 officers for about 92,000 residents.
• Strategies and accomplishments included the in-house therapist program, executive protection unit, Axon and AI efficiencies, expanded drone capability, about $2 million in grant applications, hybrid fleet savings, 100% retention, and growth in staff therapist use from 1 in 20 to 1 in 4.

Fire Department

• Deputy Fire Chief Forrester presented. The 2027 budget adds 9 full-time firefighters, including 3 battalion chiefs and 3 captains, plus equipment, supplies, and a fire cadet program, for about $1.1 million in new investments; 2028 would add 10 part-time firefighters. Reductions of about $64,000 lower the 2027 increase to about $392,000.
• Revenue declines in 2028 are tied to the end of the SAFER grant, with the fire pension fund used to help offset levy impacts.
• The 90th percentile response time has improved from about 12 minutes to 9 minutes, still above the 7:30 benchmark. Call volume is up 4–5%, nearing 13,000 runs, with overlapping calls 42% of the time and up to seven simultaneous calls. The goal remains six stations staffed with four personnel per truck.

Parks and Recreation

• Parks and Recreation has 66 full-time, 53 part-time, and about 300 seasonal employees. The 2027 general fund net impact increases about $1.1 million (8.7%), partly because the forestry fund moved into the general fund. Tax support decreases by almost $400,000 due to earned revenue growth; reductions total $175,000.
• Enterprise facilities are presented together: property tax revenue supporting the golf course, Ice Garden, Center for the Arts, aquatic center, and future community health and wellness center drops almost 20%. The Ice Garden no longer needs an operating or debt-service subsidy, and Dwan closure affects 2028 revenue.
• Staff discussed pricing policy, cost recovery, naming and sponsorships, consolidated food and beverage operations, new recreation software, and a target of 100% cost recovery for the community health and wellness center by 2030. Councilmembers asked about cross-subsidization and park maintenance service tiers; staff said cost recovery decisions will come back to council and service-level tier work may affect the 2028 budget.

Public Health

• Dr. Nick Kelly presented. Public Health serves Bloomington and Richfield with 39 full-time and 15 part-time employees, expects about $6.4 million in revenue in 2027, and receives 67% of its budget from contracts and grants. The department identified $130,000 in reductions.
• The budget increase includes investments in vaccines; Dr. Kelly cited vaccine resources declining from 16,000 to about 9,000 to about 4,000 over three years and framed the spending as prevention against a vaccine-preventable outbreak.
• He projected uninsured rates could double over five to ten years and said the department is exploring expanded billing, legislative changes, and partnerships to manage funding pressures.

Community Development

• Kim Bergren presented. Community Development has six divisions and about 90 staff, and the budget excludes HRA and Port Authority. Total spending increases 5% in 2027, with a similar revenue increase; net increases are $313,000 in 2027 and $317,000 in 2028.
• A full line-item review reduced spending by $36,000, offset by $73,000 in increases, for a net $36,000 operating cost increase. Most costs are staffing, and no staffing changes are proposed. Focus areas include customer service, housing creation and preservation, technology, code updates, and process improvements.

Public Comments and Visitors

• No public testimony was offered. Four Hill-Murray High School students attended as part of a government and economics project and introduced themselves during the meeting.

Key Outcomes

• The council approved the agenda 7-0. No votes were taken on the CIP or budget requests.
• The CIP is scheduled to return for final approval on December 7, with a public hearing in December.
• Budget discussions will continue ahead of the city’s truth-in-taxation hearing in mid-December.