City of Bloomington Utilities 2026 Water Rate Case Approved

The City of Bloomington Utilities (CBU) has received approval for an updated rate for drinking water services from the Bloomington Common Council and Utilities Service Board. The new rates will support continued investments in Bloomington’s drinking water infrastructure, including treatment plant improvements, water main replacements, and system reliability upgrades. 

The rate proposal was approved by the Utilities Service Board and the Bloomington Common Council in September 2025. This update will be the first increase to water rates since January 1, 2024, and will increase CBU’s revenue by 25%. The updated rates take effect in August and will be reflected on the September 2026 utility bills.

CBU Director Katherine Zaiger said, “The 2026 water rate increase will allow CBU to address priority projects outlined in our Capital Improvement Plan, including essential improvements at the Monroe Water Treatment Plant and across our distribution system. By investing in this critical infrastructure today, we ensure CBU can continue meeting the community’s water needs now and in the future.”

Revenue from the 2026 water rate case will allow CBU to continue improvements at the Monroe Water Treatment Plant and support critical infrastructure projects throughout the water distribution system. Planned investments include replacement of aging water mains, upgrades to pumping and storage facilities, improvements to treatment processes, and modernization of system controls and monitoring equipment.

Additional funding will support proactive maintenance and replacement of aging infrastructure to improve reliability, reduce water loss, and maintain high-quality drinking water service for Bloomington customers. The rate adjustment will also help address increased operational costs, supply expenses, and regulatory requirements associated with operating and maintaining the utility system.

A typical CBU residential customer served by a 3/4-inch meter that uses 3,000 gallons per month will see their monthly water charges increase from $26.06 to $29.78, a difference of $3.72, beginning in August 2026. Residential customer impacts will vary depending on water use and meter size.

These rate changes apply only to drinking water service and will not affect sewer or stormwater charges.

For the full schedule of rates and charges, customers may visit bloomington.in.gov/utilities/rates or stop by the Utilities Service Center at 600 E. Miller Drive. More information about the rate case is available at bloomington.in.gov/utilities/rate-case.