The City of Bloomington has officially approved a significant water-rate increase that affects every customer class—residential, commercial/industrial, institutional (including Indiana University), wholesale utilities, and irrigation users. The Bloomington Common Council passed the ordinance on September 30, and will now proceed to the Indiana Utility Regulatory Commission (IURC) for final review and approval.

This update summarizes the impacts on businesses, the justification provided by the City, and considerations for Chamber members—including Cook Medical and Indiana University, both of whom have expressed opposition or concern.

What Passed on 9/30
According to the B Square Bulletin report, the City Council voted on Sept. 30 to approve the drinking-water rate increase, sending the measure to the IURC for final action. This aligns with the structure shown in Ordinance 2025-35 and supporting documents in your packet.
Key Approved Rate Changes (per Ordinance 2025-35)

• Residential: $5.31 per 1,000 gallons
• Commercial/Industrial: $5.83 per 1,000 gallons
• IU Master-Metered: $4.76 per 1,000 gallons
• Irrigation: $10.92 per 1,000 gallons
• Wholesale (“Contract Sales for Resale”): $4.49 per 1,000 gallons

Impact on Businesses
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Large Commercial & Industrial Users

• Rates increase from the low $3 range to $5.83 per 1,000 gallons.
• This represents ~46% increase for many business classes.
• The Chamber has already publicly described this as “dramatic” and urged a more gradual, predictable increase schedule.

Indiana University

• IU, which uses 620 million gallons/year, will see master-metered rates jump 48% to $4.76 per 1,000 gallons.
• IU has not yet stated whether it will formally oppose the increase at the IURC level.

Local Water Utilities (Wholesale)

• Southern Monroe Water and Washington Township Water will see wholesale rates increase 48%, to $4.49/1,000 gallons.

Irrigation Customers

• Irrigation rate increases from $4.92 to $10.92 per 1,000 gallons—a 122% increase.

Why the City Says the Increase is Needed
Per Crowe LLP and Stantec’s studies in the rate-case packet:

• The utility faces an annual shortfall of $6.6 million without new revenue.
• A five-year $84 million capital improvement plan requires new debt capacity.
• Infrastructure priorities include aging water mains, electrical systems, chemical lines, pumps, and the Monroe Water Treatment Plant.
  
  

State law requires municipal utilities to maintain rates that are “nondiscriminatory, reasonable, and just,” ensuring revenue covers system operations, debt service, maintenance, and replacement cycles.

Next Steps: IURC Review (2025–2026)
Ordinance 2025-35 now advances to the Indiana Utility Regulatory Commission (IURC).

• The IURC has up to 300 days to issue a decision.
• The IURC is not expected to rule until approximately August 2026.
  
• Rates will not take effect until the IURC approves the tariff.

Bloomington loves a good streetscape redesign. We also love a good debate. And right now, the City’s College–Walnut Corridor Study is giving us plenty of material for both.

The City’s goal is clear: transform Bloomington’s original 1950s-era highway pair into vibrant, walkable, economically strong corridors. We’re on board with that vision. Who doesn’t want safer streets and stronger business districts? But as with most big ideas, the devil’s in the details — and in this case, in the parking counts, traffic patterns, and memories of other Very Big Projects That Got Complicated (hello, Route 7).
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At our December Advocacy Council meeting, the Chamber dug into the City’s two design alternatives — the One-Way Pair (the system we all know and sometimes love) and the Two-Way Conversion (the concept that’s generating the most eyebrow raises). Here’s where we landed.

The One-Way Plan: Familiar… but with a Parking Diet
The one-way option keeps College and Walnut flowing as they do now but adds upgraded trails, new green space, more loading zones, and the kind of placemaking that actually helps businesses.

But — and this is a big but — it removes a lot of parking.
Between 3rd and 7th Streets alone: 143 spaces → 82 spaces.

That’s not a haircut; that’s a buzz cut.

For businesses that rely on lunch-hour turnover, short-term parking, or downtown drive-up customers, those lost spaces matter.

Still, the concept improves safety without fundamentally rewriting the corridor’s DNA — and there’s some comfort in that.

The Two-Way Proposal: Interesting Idea, Thin Data
The City’s two-way idea splits the corridor personality in two:

• College Avenue would become the main traffic spine, carrying the majority of north–south flow.
• Walnut Street becomes a calmer “local access” street, with trails and slower speeds.

On paper, it brings one extra parking space downtown. Yes — one.
Bloomington businesses are not likely to erect a monument in its honor.

​The bigger concern? We do not yet have strong, Bloomington-specific data showing that converting two major, high-traffic arterials into two-way streets will improve safety, reduce conflicts, or support businesses long-term. Cities nationwide have had mixed results, and Bloomington’s unique traffic conditions — special event surges, IU game weekends, trucks making deliveries to older buildings with narrow loading options — raise legitimate questions.

The Chamber’s position right now isn’t “no.” It’s “show us.”
And preferably with charts, peer-city case studies, and a simulation or two, we can actually understand without a PhD in traffic modeling.

A Quick Word About the 7-Line
Look — we all appreciate bike infrastructure. Bloomington should be a leader in multimodal mobility.
But it’s also fair to acknowledge that the 7-Line’s rollout created a deep well of community-wide skepticism about large transportation redesigns.

That doesn’t mean we reject big ideas. It just means Bloomington is still recovering from a project that looked great in renderings but felt over-engineered in reality — and the public wants assurance that we’re not repeating that experience on an even larger corridor.

Deliveries, Events, Mobility: The Practical Stuff Matters
Our members raised recurring concerns:

• Can delivery trucks actually access businesses under these configurations?
• What happens on IU football weekends when traffic triples?
• How do we protect accessibility for older residents and those with mobility limitations?
• Will back-in parking make some blocks harder, not easier, to navigate?

These aren’t theoretical issues. They’re everyday operational realities. And until they’re addressed with clarity — not just concepts — skepticism is going to remain the community’s default setting.

What the Chamber is Doing Next
The Chamber is coordinating with the City to host a structured public meeting — not an open house, not a comment box, but a real presentation with:

• side-by-side visuals
• traffic data
• parking analysis
• delivery and event-planning scenarios
• and time for direct Q&A

Our goal is simple: get businesses the information they need before the City finalizes its recommendation in early 2026.

Bottom Line
We support the City’s push for safer streets and economic vitality.
We support the vision.
We support the goals.

But on the two-way conversion?
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Let’s just say we’re holding our applause until we see more than a sketch and a parking count of +1.

Bloomington has big dreams — and when we do big right, we do it really right. But residents and businesses deserve confidence that this project won’t become another example of admirable intentions meeting avoidable complications.

Before Bloomington changes the direction of two major streets, we need clear data, transparent engagement, and real-world operational answers. And we’ll keep working to make sure our business community is informed, heard, and central to that conversation.