City of Bloomington Rate Proposal Prioritizes Long-Term Safety and Reliability

Bloomington, Ind. – As part of a broader effort to continue delivering reliable water service with fewer interruptions and a billing system that better reflects how customers use water, the City of Bloomington Utilities (CBU) has begun the process of adjusting its water rates. This proposal reflects CBU’s commitment to ensuring the continued resilience of its infrastructure and its ability to keep pace with increasing maintenance and operation costs by conducting a comprehensive rate review every four years.

As part of this process, a cost-of-service study—completed in early 2025—allowed CBU to more accurately determine each user’s impact on the water utility and use that information to distribute rates more fairly.  This was accomplished using smart meter data to provide a more detailed, accurate picture of usage for each customer class, an approach that was requested during the most recent rate case.

“This proposal is about stewardship,” said Mayor Kerry Thomson. “Access to clean, safe water—and the systems that carry it in, carry it away, and protect our environment in the process—is a public health responsibility. Most people don’t wake up thinking about water infrastructure, and that's a good thing. It means the system is doing its job. Behind every tap, storm drain, and flush is a web of decisions we have to get right. 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.”   

If approved, the proposed rate structure would be implemented in mid-to-late 2026. Once available, details about the proposed rates and the upcoming rate case will be posted online at bloomington.in.gov/utilities/rates.

To ensure continued service reliability and water quality, CBU is prioritizing upgrades to the Monroe Water Treatment Plant. Although selective improvements have been made to the plant during its 60 years of service, many systems need more comprehensive updates.

The construction of a new service center at the former Winston Thomas wastewater treatment plant is another priority of this rate case. CBU has outgrown its current facility, which can no longer support the staffing, equipment and material storage needs of today's utility.

A detailed list of the projects supported by this rate adjustment is available in CBU’s Capital Improvement Plan. These investments are essential to maintaining a safe, reliable water system that can meet Bloomington’s long-term needs.

The proposed rate case will be discussed at the following meetings, all of which are open to the public and will be held at the Utilities Service Center at 600 E. Miller Drive:

• Monday, Aug. 25 at 5 p.m. – The Utilities Services Board will review the proposed rate changes. Anyone is welcome to attend and speak.
  Zoom Link: https://bloomington.zoom.us/j/84160267530pwd=fuaabV8MOk567cefcLrPXSbBfjUMxJ.1
  Meeting ID: 841 6026 7530
  Passcode: 877854
• Friday, Aug. 29 at 5 p.m. – CBU will host a public information session to discuss the proposal, answer questions, and hear more community feedback.
  Zoom Link: 
  https://bloomington.zoom.us/j/82738299871?pwd=goe40LxTyJryViIbIGl49zaXSzm1xA.1
  Meeting ID: 827 3829 9871
  Passcode: 980782
• Monday, Sept. 8 at 5 p.m. – The Utilities Services Board will vote on the proposed rate changes. Anyone is welcome to attend and speak.
  Zoom Link: https://bloomington.zoom.us/j/85381725798?pwd=mlQc6UaxbEOgq3vOpt5xwzvaazssCw.1
  Meeting ID: 853 8172 5798
  Passcode: 040258

If approved by the Utilities Services Board, the case will be heard again at a Bloomington City Council meeting at Bloomington City Hall, 401 N. Morton St. This meeting, which will offer another opportunity for public input, will be scheduled and noticed at a later date.

If approved by the City Council, the plan will be submitted to the Indiana Utility Regulatory Commission, the state agency that reviews and regulates utility rates. The Commission will hold its own separate hearings before making a final decision.

If all approvals are granted, the new rates will take effect in mid-to-late 2026. CBU is fully ratepayer funded, meaning every dollar invested in the water system comes directly from the people who rely on it—residents, businesses, institutions, and wholesale customers. Adjustments to rates are not about increasing profit, but investing in the long-term health, reliability, and resiliency of Bloomington’s water infrastructure.

For more information, including current rates, visit bloomington.in.gov/utilities/rates.