News

Drinking water rate increases by 20 percent starting in August

WFIU | By Elyse Perry

Published June 30, 2026 at 2:38 PM EDT

A faucet running water in a bathroom sink — Bloomington Utilities customers will see the rate increase in their September bill.

Bloomington residents will see their drinking water bills increase by more than 20 percent beginning Aug. 1. The higher rates will appear on September utility bills.

The average residential customer using 3,000 gallons of water per month will pay about $4 more for water, according to a city press release. The increase was approved by the Indiana Utilities Regulatory Commission in a settlement agreement signed June 26.

“We are on a four-year cycle for our water rate increases," Utilities Director Katherine Zaiger said. "It was just part of that normal schedule."

The new rates are expected to generate more than $5 million in additional annual revenue, according to the settlement agreement, which will help fund water system improvements not covered by bonds.

Zaiger said these projects include upgrades at the Monroe Water Treatment Plant and construction of a permanent fluoridation facility to replace the current temporary system.

“We have water main replacements that we would like to put some more funding into,” Zaiger said. “We'll be doing some upgrades that improve our system reliability and its redundancy, and then we'll be replacing some aging valves, hydrants, and our booster station equipment.”

The largest rate increase will affect customers with irrigation meters.

"We have historically undercharged for irrigation, and the large increase during this rate case was to help make up for some of that," Zaiger said.

In a concurring opinion, Indiana Utilities Regulatory Commission Chair Anthony Swinger said Bloomington's residential water rates remain "substantially lower" than the statewide average despite the increase.

Utility rates are reviewed on alternating four-year cycles. Stormwater and wastewater rates were updated in 2025, while a previous drinking water rate increase took effect in 2021.

Zaiger said the increase applies only to the water portion of customers' utility bills. Wastewater, stormwater and sanitation charges will not be affected.