The Bloomington Utilities Service Board unanimously approved a water rate increase Monday to help fund system improvements.
The increase will go to city council next. If passed there, the proposal would go to the Indiana Utility Regulatory Commission for final approval and would go into effect in mid to late 2026.
The projects are a part of a five-year capital improvement plan totaling about $84 million. It includes updates to Monroe’s water treatment plant and the Winston Thomas Service Center, ageing water mains and pumping, CBU Director Katherine Zaiger said.
The last rate case was before the Covid-19 pandemic.
“What this capital improvement plan does is play the catch-up in necessary electrical and instrumentation, making sure our equipment is up to date and making sure that our treatment plans and our distribution system is in a good position,” Zaiger said.
Read more: City of Bloomington plans to increase drinking water rates
Danica Katz from Stantec provided an overview of the cost allocation during the meeting based on a water rate study. Katz said there will be an overall 30.5 percent revenue increase.
Andy Burnham from Stantec said increases will vary, based on a customer’s usage and customer class.
For example, for residential use with a 5/8” meter, customers with lower usage could experience a $1-$5 increase or 16-19 percent, Burnham said. But those with higher usage could experience between a $10-$40 increase or about a 20 percent increase.
Also discussed during the meeting was the CBU potentially removing itself from the IURC after this rate case is completed.