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Bloomington council approves $36M bond issue for water department improvements

The Bloomington City Council receives a housing report during its regular meeting Tuesday night
Colin Hardman
/
WGLT
The Bloomington City Council received a housing report during its regular meeting on Tuesday at the Government Center.

The City of Bloomington will issue up to $36 million in bonds to finance water department improvements in the coming years, following approval Tuesday night by the city council.

Water department head Ed Andrews said the money will help pay for programs like replacing the city’s lead lines that Bloomington hopes to finish in the next 10 years. About 5,700 lead lines remain in the city by its estimation, mostly in older neighborhoods.

Bloomington Water Director Ed Andrews
Colin Hardman
/
WGLT
Bloomington Water Director Ed Andrews spoke at Tuesday's city council meeting.

The bond issue is estimated to cover water improvements for fiscal year 2025 and 2026, but there are plenty of other projects in the pipeline.

The department’s 10-year plan also includes replacing some water mains, distribution changes including new elevated tanks, and upgrades at the city’s filtration plant. In the wake of unexpected increases in taste and odor problems, that will include a new filtration silo expected by next summer.

Green Top Grocery

Green Top Grocery cooperative, at 921 E. Washington St., has seen its share of financial struggles, including a long-delayed $100,000 payment expected from the IRS. Under a current agreement with Bloomington, the city returns 30% of the sales tax the co-op generates.

Right now, that’s about $15,000 a year, said city manager Jeff Jurgens, and the the measure will expire in 2028. After talks with leaders of the co-op, the council considered extending that to 2038.

But some council members didn’t like the idea of continuing to subsidize a struggling business.

“We will be doing that at the expense of all of our other residents across the community, and I just don’t think that’s appropriate,” said Sheila Montney.

That idea did see pushback from others, with council member Mike Straza pointing out that if Green Top fails, the city will lose all the sales and property tax it generates — not just 30% of its sales tax.

Two council members, Mollie Ward and John Danenberger, recused themselves from voting on the extension. The council voted 4-3 in favor of extending the agreement, but passage required five votes.

Housing report

Also Tuesday, the council received a report from Opticos Design, a firm partnering with the city to analyze housing needs. Of particular focus was so-called "missing middle" housing [MMH], referring to an accessible middle ground between apartment buildings and single-family homes.

Jennifer Settle of Opticos presented the findings via an online presentation. The report states that 38% of renters and 19% of homeowners in Bloomington are cost-burdened, meaning they spend 30% or more of their income on housing.

The recommendations in the report include examining zoning to allow for more MMH to be developed, and shifting space use priorities away from concerns like parking and toward housing and walkable community centers.

Accepting the report does not commit the council to making any policy changes, but it would direct city staff to investigate implementing the recommendations. Multiple council members expressed that it would be best to postpone that decision until they could discuss the report further.

In a 5-4 vote, the measure was tabled to a future date.

Some council members expressed disappointment in the report, citing a neglect for council interests like rehabilitation of existing properties. That, among other elements, will be discussed the next time the report is before the council.

Colin Hardman is a correspondent at WGLT. He joined the station in 2022.