By Mayor Tim Busse
In December, the City Council approved Bloomington’s 2025 property tax levy and general fund budget with a tax levy increase of 9.18%. That levy increase translates into an actual increase in City property taxes of 6.85% for a median-valued home and equates to an annual increase of $97, or $1.87 per week. I believe this budget reflects the values, priorities, and expectations of the residents of Bloomington.
Like any budget discussion, our conversation was centered on revenues and expenditures. On the revenue side, the City continues to see increases in our collections from lodging and admission taxes. In both cases, we’re at or above 2019 levels, which tells me that our hospitality industry is back to pre-pandemic numbers. That’s good news. The City collects about $10 million each year from those two revenue sources, which is significant. On the flip side, we’ll see a decrease again this year in revenues from permits. That’s the result of fewer big construction projects underway in Bloomington.
From an expenditure perspective, once again this year, the two biggest expense drivers are closely related to City services that residents have come to expect. City governments are in the service industry. The City of Bloomington does not make widgets, but instead provides services like police and fire protection, snow plowing, park maintenance, water delivery, and many others. For decades, Bloomington residents have made it clear that high-quality City services are a priority, and I agree that’s how it should be.
On the topic of services we’ve all come to expect, Bloomington’s investments in public safety are a major expense driver. For years, the Council has heard that public safety is the top priority in this community. This budget and frankly budgets for the past couple of years reflect that. You all know that we have one of the best—if not the best—police departments in Minnesota. That requires investment in people, training and equipment. You also know that we’re building a long-overdue fire department that is a combination of full-time and paid on-call firefighters. Even with federal grants to help defer those costs, a fire department is a significant investment. Of the 9.18% levy increase, almost 65% goes toward police and fire services. If you prefer raw dollar figures, the increase in the property tax levy for 2025 is $7.4 million. More than $4.7 million will go to police and fire.
On a larger scale, more than 82% of this budget will go toward the five areas that make up the nuts-and-bolts work of city government: police, fire, public works, parks and recreation, and community development. That level of spending in these vital areas reflects the priorities, values, and expectations of Bloomington residents.
As you’ve heard me say before, the Council’s work on the annual budget is the most important work we do. I firmly believe that the 2025 levy increase reflects the City’s mission to cultivate an enduring and remarkable community where people want to be.
Thank you to everyone who provided feedback in this process. You can watch my full comments on the 2025 budget in the episode of Council Minute at blm.mn/budget.
