Strong interest in redevelopment in Bloomington has caused portions of the City’s sanitary sewer to reach capacity limits. Around $55 million in sanitary sewer improvements will be needed by 2040 to allow for continued growth within the city.
Throughout 2024, City staff engaged with local stakeholders and residents about sewer capacity and potential solutions. Based on feedback and available options, the City Council selected a funding path that includes fees on new development and modifications to future utility rates.
State statute allows cities to apply a city sewer availability charge (City SAC Fee) on new development. Many cities charge such a fee. On December 2, the City Council adopted an ordinance to charge a City SAC Fee of $2,026 per unit on all new building permit applications received after January 1. The City Council also directed staff to further research possible SAC Fee exemptions and alternative funding sources in early 2025.
Visit letstalk.bloomingtonmn.gov/sewer-capacity-funding for more information about sanitary sewer capacity and the SAC Fee.
