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Page last updated on August 4, 2017 at 3:04 pm

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Vic Kelson, City of Bloomington Utilities Director,


City of Bloomington Officials File Water Rate Increase

Bloomington, Ind. — Today the City of Bloomington Utilities (CBU) filed an updated rate tariff with the Indiana Utilities Regulatory Commission (IURC). This final step in a 1.5 year-long process affixes a 20.06% increase on the water portion of customers’ bills. The prior water rate increase was approved in 2010 and implemented in 2011. 

Officials began the public review process in early 2016. The Utilities Service Board and City Council both approved a 22% increase request and a corresponding plan to issue $4.6 million of new debt to kickstart an aggressive replacement program for aging water mains. The IURC review resulted in an approval of 20.15% on March 24, 2017. 

With the recent sale of the 2017 waterworks revenue bonds bringing in a competitive bid, debt service payments for the utility will be nearly $13,000 per year lower than initially estimated, thereby reducing the needed rate increase to 20.06%. 

This means that residential customers will pay $3.73 per 1,000 gallons of water, up from $3.11. Customers will notice the new rates on their September bill. For the full schedule of rates and charges, customers may stop by the Utilities Service Center at 600 E. Miller Dr. or visit the city’s website at

CBU is funded entirely by its customers -- the residents, businesses, public institutions, and wholesale water companies in and around Bloomington. The increased revenue will be used to continue to improve water quality and system resiliency with targeted investments in plant equipment and laboratory supplies.

“One of city government’s most basic functions is to deliver high quality water to all our residents and customers,” said Mayor John Hamilton. “This new investment is critical to meeting that obligation efficiently and for years to come.”

Throughout the distribution system, city residents will notice increased activity in the upcoming months as the main replacement program kicks off, targeting replacement of water mains in poor condition. CBU also plans to move toward advanced meters which can be monitored remotely and allow CBU to alert customers of potential leaks.  

These new initiatives are funded by the rate increase, along with the ongoing operational maintenance of the 25,311 connections, 3,064 fire hydrants, 420 miles of water pipes, 7 storage tanks, 7 booster stations, and 1 water treatment plant which is celebrating its 50th anniversary this year.