Council committee recommends 2026 water and wastewater budgets totaling about $57.7 million; no rate increase assumed

Kat Zager, utilities director for the city of Bloomington, presented Appropriation Ordinance 2025-13, asking the committee of the whole to recommend adoption of the water and wastewater utility budgets for 2026.

Why it matters: the ordinance sets next year’s operational, maintenance, debt-service and capital-improvement budgets for the city’s utilities and frames short-term financing steps staff say are needed to keep water operations balanced without a rate increase.

The water utility budget presented totals $23,119,000 and the wastewater budget totals $34,590,000. Kat Zager told the committee the ordinance does not assume any rate increases for 2026. Zager said the water budget includes a negative balance in the “extensions and replacements” line of about $603,000 and that the city plans to make that up with a one-time loan from the sewer utility so the water fund can finish the year balanced.

Zager explained that “extensions and replacements” is a historical fund name used to balance the water budget; positive amounts are used for unexpected expenses and maintenance while a negative amount indicates a shortfall. She said the water budget must net to zero and the loan from sewer is intended as a one-time fix.

Council members asked operational questions. Council member Piedmont Smith asked why the extensions-and-replacements amount was negative; Zager repeated the explanation about the fund’s purpose and the planned sewer-to-water loan. Council member Rallo asked about the water treatment plant’s spare capacity; Zager said the plant’s maximum capacity is 30,000,000 gallons per day, average daily use is about 15 million gallons and peak days reach about 19–20 million gallons, meaning the plant currently has spare capacity.

Public comment on the ordinance drew no speakers.

The committee moved and seconded a recommendation to the full council; Clerk Bolden called roll and the committee recorded a 7–0 vote recommending adoption of Appropriation Ordinance 2025-13.

What’s next: council-level consideration and any separate rate discussions. Zager told the committee that future rate discussions will occur in this body, but the 2026 budget itself does not assume a rate increase.