Bloomington council adopts resolution to authorize refunding of 2015 TIF bonds, setting parameters for up to $30 million issuance

The Bloomington Common Council adopted Resolution 2024‑16 by a 7–0 roll-call vote Aug. 21, authorizing the city’s Redevelopment Commission to issue tax increment revenue refunding bonds with a maximum principal of $30,000,000 to refinance outstanding 2015 TIF bonds if the sale yields net savings.

City Attorney Larry Allen and financial advisor Buzz Krone (Krone and Associates) told the council that the resolution establishes the statutory parameters for the potential issuance — a 15‑year maximum term, a maximum interest rate cap of 4.25% and an authorization window tied to the bonds’ first call date in early 2025. Allen said the resolution does not mandate a bond sale; city finance officials will make a market‑timing determination, including whether projected savings after issuance costs justify closing.

Key figures and purpose: The resolution sets a $30 million maximum principal amount and a 15‑year payoff window to Feb. 1, 2040. Krone reported an all‑in true interest cost roughly 3.86% in current market conditions and presented an estimate of gross savings of about $1,660,000 and net present value savings of about $1,260,000 if the refunding is executed at favorable rates. City Controller Jessica McClellan said the 2015 TIF bond proceeds—about $41,000,000—were largely used for Switchyard Park and other downtown infrastructure projects, the Trades District, an animal shelter renovation and portions of the 17th Street multi‑use path.

Council questions: Council members asked detailed questions about how a consolidated TIF handles sunsetting of individual component districts, whether incremental revenues are tracked separately for each sub‑area, parity covenants and the timing window for calling bonds. Krone and other staff described statutory changes (noting legislation in 1998 and 2014 changed TIF term rules), explained that some legacy areas have different sunset dates (many assets mature in the late 2030s through 2044), and said the official statement will include detailed schedules and coverage projections.

Public comment and transparency requests: No member of the public spoke on the resolution during the designated public comment on that item. Council members asked staff to provide a map and a schedule listing each TIF area with establishment and sunsetting dates and to circulate the official statement and parity analyses to better visualize which areas will drop off when.

Outcome and next steps: Resolution 2024‑16 was adopted 7–0. If market conditions remain favorable, controller McClellan and advisors will proceed with timing and execution; if projected savings are insufficient once issuance costs are included, staff will pause and not proceed with a refunding sale.