Staff presented the draft 10-year capital improvement plan. City facilities make up the largest category at more than $300 million, followed by surface transportation at about $275 million, sewer, water and storm at $177 million, South Loop at just under $100 million, and park development at about $70 million. About 90 projects totaling roughly $260 million are slated for 2027–28, including a fire station rebuild, a clubhouse, a possible animal shelter replacement and pavement management. The planning commission will review the plan for consistency with the comprehensive plan later this month, and it returns to the council December 7 for a public hearing and final approval. Council members stressed that the plan does not guarantee funding for any project.
Following this: 2027-2036 Capital Improvement Plan: Draft goes to council
The animal shelter replacement, long pegged at about $5 million, appears in the draft capital plan at $7 million. Staff said the higher figure is a cushion against cost uncertainty for 2028 and that a feasibility study is underway. The police chief said the department will seek outside funding and cost-sharing partners for the shelter replacement planned for 2028.
Following this: 2027-2036 Capital Improvement Plan: Draft goes to council
In response to resident concerns raised through a council member, staff said the $45 million parking ramp tied to the proposed water park would be financed through Port Authority tax increment financing. No property tax levy is planned for it. Staff noted the ramp would proceed only if the water park moves forward, and that the item has been pushed back in the plan several times.
Following this: Port Authority Gives Mall of America Water Park Project Two More Years
The deputy city manager presented budget requests for the external services departments, which make up about 90% of the general fund. Spending is projected at $116.3 million in 2027, up $7.9 million or 7.26%, for a net general fund impact of $91.4 million, up 8%. Spending would grow another 3.97% in 2028 to $120.9 million. Revenue is expected to decline that year as a state grant for the fire department ends. No decisions were made at the study session.
Following this: 2027-28 budget: Back-office cuts, fewer precincts
Public Works proposed 2027 rate increases of 3% for water, 9% for wastewater, 4% for stormwater and 4% for solid waste. Staff said the wastewater increase is needed mainly for the North Central sanitary sewer project. Fees from a city sewer availability charge approved in 2025 have not yet met expectations, and staff expect rate relief as those fees come in. The city will skip curbside cleanup in 2027 to save on contract costs. Staff also expect lower franchise revenue as fiber buildout reduces cable revenue.
Following this: 2027 utility rates: Sewer bills face a 9% jump
The police chief presented a 3.92% net budget increase, most of it a $500,000 contract discussed at a recent meeting. The chief said the city will now bill visiting dignitaries who use the department's executive protection unit. The department expects AI tools in its Axon system to cut dispatch calls handled by humans and credited its in-house therapist program with a 100% officer retention rate. The chief noted Bloomington has 133 officers for 92,000 residents, compared with 156 in Duluth.
Following this: 2027-28 budget: Back-office cuts, fewer precincts
The fire budget would add nine full-time positions in 2027, including three battalion chiefs and three captains, at a cost of about $1.1 million in new investment. Ten part-time firefighters would be added in 2028. The fire pension fund will be used to offset the levy impact when the federal SAFER grant ends. The department's 90th-percentile response time has dropped from more than 12 minutes to 9, against a 7½-minute goal. The department expects nearly 13,000 incidents this year, with overlapping calls 42% of the time.
Following this: 2027-28 budget: Back-office cuts, fewer precincts
Parks and Recreation reported an 8.7% net general fund increase. Most of that increase comes from moving the forestry fund into the general fund rather than from new spending. Property tax support for the department's enterprise facilities would fall by nearly 20%, as the Bloomington Ice Garden no longer needs operating or debt-service subsidies. The Community Health and Wellness Center is slated to open next fall with about nine new full-time staff and a goal of 100% cost recovery by 2030. Revenue at Dwan Golf Course is expected to dip in 2028 during a closure for improvements.
Following this: Residents Return to the Council Mic Over Health and Wellness Center Construction and the Smith Park Agreement
