Next year's city utility bill is starting to take shape, and the sewer line is the one that stands out. On October 19, 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. They also said fees from a city sewer availability charge, which the council approved in 2025 to help pay for that kind of capacity, have not brought in as much as expected so far.
City of Bloomington@CityofBloomingtonMNPublic Works lays out the proposed 2027 increases for all 4 utilities and explains why wastewater gets the biggest bump.10/19
The project is a big one. The city says it covers 13,330 feet of 24-inch sanitary sewer pipe, running from American Boulevard and Morgan Avenue to Syndicate Avenue and West 92nd Street, with a crossing under I-35W near the I-494 interchange. The goal is more sewer capacity for the Penn American District, where new housing and mixed-use buildings keep adding demand. The city plans to install most of the pipe with trenchless methods, which means less digging along the way.
The project has been coming before the council for about a year. In November 2025, staff told the council that Fremont Avenue was the proposed route for most of the new sewer and floated bundling nearby street work into the same contract.
City of Bloomington@CityofBloomingtonMNStaff name Fremont Avenue as the main route for the new sewer and explain how a nearby street project could go to the same contractor.11/17
In December 2025, staff said the city was asking the state to help pay for the project. They described it as upsizing sewer capacity near I-494 and 35W to handle denser land use. That request worked: in May, the city received a $4 million state bonding appropriation for the project.
City of Bloomington@CityofBloomingtonMNStaff explain why the city is asking the state for help paying for the sewer upsizing near I-494 and 35W.12/15
The pipe also matters for private building plans. In June, Councilmember D'Alessandro asked how the sewer project would affect one developer's timeline. That question shows how closely new Penn American projects depend on this work. The city has said construction runs from 2026 into fall 2027, and sewer utility funds cover the cost of the sewer and the related street repairs. That is why the bill shows up in sewer rates instead of property taxes.
City of Bloomington@CityofBloomingtonMNA councilmember asks how the North Central sewer project could affect a development's timeline.06/01
Right now the rates are only a proposal. The council heard them at a study meeting and has not voted. The city's budget calendar lists public hearings on the solid waste, water and wastewater rates for Monday, November 9. That is the formal point where the council takes comment before it adopts 2027 rates.
If you want a say on next year's bill, you can speak at the November 9 hearing at Civic Plaza or contact your councilmembers before then. You can reach Public Works at 952-563-8700 with questions about the sewer project.
From the meeting: City Council Study Meeting, October 19, 2026.
