Sanitary Sewer Capacity Funding

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Promise to the public: Staff is reaching out to the public to share information about the sanitary sewer capacity issue and collect feedback about the concerns and impacts these funding options could have on various stakeholders. Staff will share project updates on this site, including key themes and learnings from the public, and how public input was incorporated into the staff recommendation to the City Council.

The Current Issue:

The sanitary sewer capacity funding project seeks to determine long-term funding options for the City of Bloomington to redevelop its sanitary sewer system. Staff have identified sanitary sewer capacity limitations due to land use changes projected to generate significantly more wastewater flow than what currently exists. Continued redevelopment over time has consumed excess capacity within the sanitary sewer system in many areas resulting in the need for significant infrastructure improvements. Between now and 2040, based on City forecasts, it is estimated that approximately $55 million in sanitary sewer improvements will be needed to meet the capacity demand of redevelopment throughout the City. An additional $12 million is expected to be needed to add capacity to the Metropolitan Council’s interceptor system.

Without these sewer capacity improvements, development would likely divert to other cities or areas of Bloomington that have sufficient capacity. Many of the areas in Bloomington that have higher levels of remaining sewer capacity are less suited for higher density new development due to their lack of proximity to transit, freeways and amenities.

Proposed Solution: Staff have identified a variety of funding options and are currently seeking feedback on how best to increase sanitary sewer capacity. Funding options include: 1) implementing a local Sewer Availability Charge (SAC) fee paid by new development; 2) utilizing sanitary sewer utility rates; 3) pursuing Federal and State government grants and appropriations; 4) utilizing development funds like Tax Increment Financing; 5) increasing debt service to be repaid by the property tax levy; and 6) utilizing special assessments on properties directly benefiting from sewer capacity improvements.

The City will continue to seek out Federal and State government resources to fund expansion of the sanitary sewer system, but these resources are often not guaranteed and based on short-term fixes. The City does have direct control, however, on two long-term funding options – implementing a local SAC fee and setting sanitary sewer utility rates.

A potential policy solution to address the long-term need to update our sanitary sewer system is to implement a City SAC fee on all new development and/or increase utility rates on all rate payers. To understand how these two options could impact you, see the "Scenarios for SAC and Sanitary Sewer Utility Rates" in the Documents tab on the right hand side of this webpage. If the City Council chooses to adopt a City SAC fee at its November 18th meeting, the City SAC fee could take effect as soon as November 27, 2024.

Promise to the public: Staff is reaching out to the public to share information about the sanitary sewer capacity issue and collect feedback about the concerns and impacts these funding options could have on various stakeholders. Staff will share project updates on this site, including key themes and learnings from the public, and how public input was incorporated into the staff recommendation to the City Council.

The Current Issue:

The sanitary sewer capacity funding project seeks to determine long-term funding options for the City of Bloomington to redevelop its sanitary sewer system. Staff have identified sanitary sewer capacity limitations due to land use changes projected to generate significantly more wastewater flow than what currently exists. Continued redevelopment over time has consumed excess capacity within the sanitary sewer system in many areas resulting in the need for significant infrastructure improvements. Between now and 2040, based on City forecasts, it is estimated that approximately $55 million in sanitary sewer improvements will be needed to meet the capacity demand of redevelopment throughout the City. An additional $12 million is expected to be needed to add capacity to the Metropolitan Council’s interceptor system.

Without these sewer capacity improvements, development would likely divert to other cities or areas of Bloomington that have sufficient capacity. Many of the areas in Bloomington that have higher levels of remaining sewer capacity are less suited for higher density new development due to their lack of proximity to transit, freeways and amenities.

Proposed Solution: Staff have identified a variety of funding options and are currently seeking feedback on how best to increase sanitary sewer capacity. Funding options include: 1) implementing a local Sewer Availability Charge (SAC) fee paid by new development; 2) utilizing sanitary sewer utility rates; 3) pursuing Federal and State government grants and appropriations; 4) utilizing development funds like Tax Increment Financing; 5) increasing debt service to be repaid by the property tax levy; and 6) utilizing special assessments on properties directly benefiting from sewer capacity improvements.

The City will continue to seek out Federal and State government resources to fund expansion of the sanitary sewer system, but these resources are often not guaranteed and based on short-term fixes. The City does have direct control, however, on two long-term funding options – implementing a local SAC fee and setting sanitary sewer utility rates.

A potential policy solution to address the long-term need to update our sanitary sewer system is to implement a City SAC fee on all new development and/or increase utility rates on all rate payers. To understand how these two options could impact you, see the "Scenarios for SAC and Sanitary Sewer Utility Rates" in the Documents tab on the right hand side of this webpage. If the City Council chooses to adopt a City SAC fee at its November 18th meeting, the City SAC fee could take effect as soon as November 27, 2024.

Questions

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  • Share When is this proposed to start? We just paid a lot to line our pipes so hope it doesn't affect those! on Facebook Share When is this proposed to start? We just paid a lot to line our pipes so hope it doesn't affect those! on Twitter Share When is this proposed to start? We just paid a lot to line our pipes so hope it doesn't affect those! on Linkedin Email When is this proposed to start? We just paid a lot to line our pipes so hope it doesn't affect those! link

    When is this proposed to start? We just paid a lot to line our pipes so hope it doesn't affect those!

    Doc asked 2 months ago

    There are two projects that are anticipated to move forward first, shown with the red ‘Now’ circles on the map. The southern project could start as early as summer 2025 (depending on the outcome of this sanitary sewer capacity funding study.)  The northern project would start in 2026 and take two years as it is a longer project.

    Depending on the route selected, the new sanitary sewer may or may not have the house services connect into the new pipe. If the new sanitary sewer pipe does connect to existing house service pipes the impact to your newly lined pipe would be minimal, just enough to make the connection to the new pipe.

  • Share How much capacity would be added to each of the areas identified as constrained? on Facebook Share How much capacity would be added to each of the areas identified as constrained? on Twitter Share How much capacity would be added to each of the areas identified as constrained? on Linkedin Email How much capacity would be added to each of the areas identified as constrained? link

    How much capacity would be added to each of the areas identified as constrained?

    robert asked 4 months ago

    It is expected that all the combined Capital Improvement Program (CIP) projects will add over 4 million gallons per day (MGD) in sanitary sewer flow capacity by 2040.

Page last updated: 01 Oct 2024, 02:16 PM