City of Bloomington Utilities 2026 Water Rate Case Approved

The Bloomington Common Council and Utilities Service Board have approved a significant rate increase for the City of Bloomington Utilities (CBU) to fund critical drinking water infrastructure improvements. Set to take effect in August 2026, the adjustment marks the first rate hike since 2024 and is projected to increase the utility's revenue by 25%. This financial shift is designed to support long-term system reliability and modernization efforts, ensuring the utility can meet evolving regulatory requirements and community demand.

The approved rate case will generate a 25% increase in revenue for the City of Bloomington Utilities, specifically targeting projects outlined in the utility’s Capital Improvement Plan. CBU Director Katherine Zaiger emphasized that the funding is essential for addressing priority projects at the Monroe Water Treatment Plant and throughout the broader distribution network. These investments are intended to modernize system controls, upgrade pumping and storage facilities, and improve treatment processes to maintain high-quality service.

Beyond treatment plant upgrades, the revenue will support the replacement of aging water mains and the modernization of monitoring equipment. These proactive maintenance efforts are aimed at reducing water loss and enhancing overall system reliability across the Bloomington service area. The utility also noted that the rate adjustment is necessary to offset rising operational costs, increased supply expenses, and the growing burden of regulatory compliance associated with municipal water management.

For the average residential customer using 3,000 gallons per month with a 3/4-inch meter, monthly water charges will rise from $26.06 to $29.78, representing a $3.72 increase. While individual impacts will vary based on meter size and consumption levels, the utility clarified that these changes apply strictly to drinking water services and do not affect sewer or stormwater rates. The new pricing structure will be officially reflected on utility bills starting in September 2026 following the August implementation.