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Engineering Division

Finance Department

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Franchise Fees

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A public hearing is scheduled for Monday, July 26 at Bloomington City Council to discuss an update to Franchise Fees.  A Franchise Fee Update page has been created on the Let’s Talk Bloomington webpage https://letstalk.bloomingtonmn.gov/franchise.

In 2016 Bloomington implemented franchise fees to expand its Pavement Management Program (PMP).

PMP maximizes efficiency in street repair and replacement by identifying the right action to take at the right time. This prolongs pavement life, keeps City infrastructure in good condition and supports property values.

PMP funding is provided through state aids, assessments, levy taxes and, now, franchise fees. With franchise fees, existing trails are maintained, street overlay maintenance is fully funded, and the sealcoat program is partially funded.

 

2022 Fee change under consideration

City Council Public Hearing July 26, 2021

The franchise fees collected fund many components of the Pavement Management Program; Overlay, Seal coating, Trails in Parks Construction and Maintenance, and Trails in ROW Construction. When Bloomington initiated the collection of these fees in early 2016 it was anticipated that an increase in fees would occur in 2020 to be implemented January 1, 2021. Due to the financial impact of COVID 19 a one year delay was imposed. A public hearing will be held by the City Council on Monday, July 26, 2021 to discuss a franchise fee increase for 2022.

Join the conversation on Let's Talk about the Council's decision to increase franchise fees by clicking the image below.

Let's Talk Bloomington logo.

 

 

 

 

 

 

Overlay/sealcoat

There are two street maintenance techniques in the Pavement Management Program (PMP) that utilize Franchise Fee dollars: Mill/overlay and sealcoat techniques. 

Mill and overlay projects grind down the top layer of pavement surface and install a new top layer. This is performed when pavement is in moderate condition and extends the life cycle. Additionally, curbs, gutters or sidewalks causing drainage issues or public hazards are replaced.

Sealcoat sprays adhesive on existing surfaces and spreads small aggregate rock over the top. (Excess rock is swept off and recycled) This extends pavement life by protecting it from oxidation and moisture.

Approximately 7-9 miles of mill/overlay and 25-30 miles of sealcoat are typically done each year to maintain Bloomington City streets.

Trails

By adding a trail component to PMP, trail segments are evaluated for Pavement Condition Index (PCI) values and scheduled for improvements based on their score. Trails are then surveyed and designed to meet modern standards, including, geometric improvements, additional width, safety buffers and ADA (Americans with Disabilities Act) compliance.

Franchise Fees are also used for routine maintenance of existing Right of Way and Park Trails. Current maintenance practices include crack sealing, fog sealing and patching for severe pavement defects.

Maintenance on trails prevents detrimental effects of UV rays and oxidation. Maintenance on roadways prevents detriments due to vehicle loading.

Approximately 3-4 miles of maintenance are completed each year on City trails.

Franchise fee work completed since 2016

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