City of Bloomington proposes water rate increase for plant upgrades, new service center

Staff report

BLOOMINGTON, Ind. — The City of Bloomington announced Monday that it is proposing a water rate increase to fund major infrastructure improvements, according to a press release from the city.

City officials said the proposal is intended to ensure long-term safety and reliability of the water system, with priorities including upgrades to the 60-year-old Monroe Water Treatment Plant and construction of a new service center at the former Winston Thomas wastewater treatment plant site.

The plan follows a cost-of-service study completed earlier this year. Using smart meter data, the city said it can now more accurately determine each customer’s impact on the water system and set rates that more fairly reflect usage. If approved, the new rates would take effect in mid-to-late 2026.

“This proposal is about stewardship,” Mayor Kerry Thomson said in the statement. “From neighborhood kitchens to school fountains to fire hydrants and community splash pads, water connects us all. This plan ensures that connection stays strong and resilient for the long haul.”

The city will hold public meetings on Aug. 25, Aug. 29, and Sept. 8 at the Utilities Service Center, 600 E. Miller Drive, with opportunities for residents to comment in person or via Zoom. If approved by the Utilities Services Board and City Council, the proposal will go to the Indiana Utility Regulatory Commission for final review.

Bloomington Utilities is fully funded by ratepayers, meaning every dollar invested in the water system comes directly from the people who use it. The city said the proposed increase is not aimed at generating profit, but at investing in the long-term health and resiliency of the system.

More information is available at bloomington.in.gov/utilities/rates.

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