Bloomington City Utilities presents $84 million capital plan, seeks 30.5% revenue increase to fund projects

The City of Bloomington Utility Service Board on an unspecified date heard a water rate study showing the utility needs a 30.5% overall revenue increase to meet a $84 million capital improvement plan and to maintain about $7.1 million per year in extensions-and-replacements cash.

Jennifer Wilson, a consultant with Crow, told the board her team used year-end 2024 as a test year and adjusted operating expenses for known, measurable items. She said the 2025–2029 capital improvement plan totals $84,000,000, of which roughly $54,500,000 is proposed to be bond-funded and $28,400,000 is expected to be funded from ongoing cash for extensions and replacements. “We looked at balance sheets, your income statements, your debt service and your leases,” Wilson said, summarizing the study’s approach.

Wilson said the study set ongoing annual funding for routine extensions and replacements at $7,100,000. Using the study’s revenue requirements, the utility’s total revenue need is $29,100,000 compared with current revenue of about $22,600,000, creating an indicated shortfall of about $6,500,000 and the 30.5% revenue increase.

Danica, a Stantec analyst who participated in the cost-of-service study, described how Stantec allocated the revenue requirement across customer classes and produced proposed rate…