Staff proposed keeping the franchise fee structure flat-rate (rejecting a usage-based percentage model due to drastic bill swings for high-use customers) with residential rates unchanged since 2023 and modest increases for commercial tiers (up to $18/month for large commercial). Council members Delisandro and Nelson argued the fee is legally a charge for utility use of city right-of-way, not a consumption tax, and the plan adds a new $200,000/year retaining-wall replacement category funded by savings from reduced street overlay work. No formal vote was taken (study session); staff will proceed toward a public open house and a public hearing later this spring with implementation targeted for early fall.
Staff told council that replacing 2026 franchise fee revenue would require a roughly 9% tax levy increase, prompting debate over whether the fee is effectively a hidden tax. Several council members (Rivas, Nelson, Lehman) pressed for transparency with residents during the upcoming 2027-28 budget cycle and asked whether the levy could be held near a 5-6% target if franchise fees continue.
Consultants from Davy Resource Group presented results of a high-tech canopy/LiDAR assessment (Bloomington is only the second Minnesota city to use this method) showing 35% tree canopy citywide, ranging from 1.5% near South Town to 63% near Nine Mile Creek, with 390 acres of canopy added in the past decade despite emerald ash borer losses. The plan identifies 56 street trees for removal and 256 for pruning, and flags future pest/disease risks (Asian longhorned beetle, spongy moth) though staff said Bloomington isn't at imminent risk. A final draft plan is expected by end of April with adoption to follow.
Staff presented options ranging from a small permit-based program (residents plant/maintain boulevard trees, ~$120,000 added maintenance cost) up to a full municipal planting program modeled on Minneapolis/St. Paul (~$1 million/year over 20 years). Council members Robertson, Delisandro, and Carter voiced support for a combined 'option four' — permits plus a city-led equity-focused planting effort in low-canopy areas — while Lehman urged treating tree management like the pavement management program with a long-term funding and assessment strategy. Staff will incorporate this direction into the draft plan due by end of April.
Staff confirmed the city will continue its practice (in place ~3 years) of not entering private property to inspect or remove trees due to equity concerns, instead directing residents to a list of contractors; council concurred. Delisandro called for stronger tree-replacement requirements on developers (e.g., requiring multiple replacement trees rather than one-for-one) tying into earlier R1/R2 zoning discussions, and the mayor cited a Penn Avenue townhome site cleared of trees and left vacant for years as an example needing clearer rules; staff will bring this back for further study with planning input.
Council voted 7-0 to close the meeting under the state's employee-evaluation exception to conduct the first performance review of the city manager since his hiring. Discussion occurred in closed session in the Dakota conference room; the mayor said results would be reported out publicly at the next council meeting the following night.
