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CBU clarifies rule allowing targeted sewer extensions outside city limits for economic development
Summary
Utilities Director Catherine Zager told the board that a January update to CBU rules (section 24.2) permits sewer extensions outside Bloomington city limits only for developments designated by the city's economic and sustainable development office as strategic economic development sites; the change excludes residential development and aims to support job creation and wage growth.
Catherine Zager, utilities director for City of Bloomington Utilities, told the board on March 9 that an update to rules and regulations (section 24.2) approved Jan. 29 adds a narrowly defined allowance for CBU to consider sewer extensions outside the city limits for specific economic development projects.
"It's really just adding a... circumstance where we would allow for sewer extension outside of city limits very specifically for development that's been identified by the City of Bloomington economic and sustainable development as a strategic economic development site that would contribute specifically to job creation and wage growth," Zager said.
Board members asked clarifying questions about scope and contiguity requirements. A board member confirmed the allowance does not include residential development; Zager emphasized the policy targets commercial or strategic projects identified by city economic development staff. The chair noted media attention to the mayor's office supporting large economic development projects and said the board's prior Jan. 29 vote provided that support.
The board did not take new formal action at the March 9 meeting on the rule text; Zager offered to answer questions and provide background to members who missed the Jan. 29 discussion.
Why it matters: Allowing sewer extensions outside city limits can enable large development projects that require municipal sewer service, potentially shaping local job creation and commercial growth. The board’s clarification that the allowance excludes residential development narrows the policy’s direct impact on households but may affect developers and larger employers seeking utility infrastructure.
Next steps: Staff will continue to coordinate with city economic and sustainable development staff on qualifying projects and provide additional information to board members as needed.
