City of Bloomington Utilities board approves 30.5% water rate increase and recommends $71 million bond authorization

The City of Bloomington Utility Service Board on Sept. 20 voted to approve Resolution 2025-16, recommending a 30.5% increase in water rates, and to approve Resolution 2025-17, authorizing up to $71 million in bonds to finance capital improvements. Both measures were approved by voice vote and will be submitted to the Indiana Utility Regulatory Commission for final approval.

City Utilities Director Catherine Zager introduced the proposal and said the board’s recommendation is based on a cost-of-service study conducted with consultant Stantec. "CBU staff feels confident that the cost of service study approach has resulted in one of the most accurate data-driven water rate assessments that this utility has had to date," Zager said.

Stantec principal Danica Annika Katz described the study’s methodology, saying the consultant analyzed 2024 operational and AMI billing data to allocate the utility’s $29.1 million revenue requirement across customer classes and demand factors. Katz said the study produced a recommended reallocation that yields an overall 30.5% revenue…