Bloomington water rates will go up 33% this May — and again in 2025 and 2026 — after Monday’s city council vote, paving the way for an overhaul of the city’s aging water supply system.
City Manager Tim Gleason said the decision didn't come out of the blue. Bloomington has been focused on preserving the quality of the water supply for several years, culminating with a water infrastructure master plan and rate study.
“Water is definitely our most important resource,” said Mayor Mboka Mwilambwe, adding the city is blessed to have its reservoirs available. The city's primary water sources are Lake Bloomington and Evergreen Lake.
State and federal mandates for updating water systems — created in part as a response to the water crisis in Flint, Michigan — have pushed U.S. communities like Bloomington to move forward.
"An increase in the rate is not something that anybody wants, necessarily looks forward to. But I do think just looking at the actual cost of $400 million, it's very difficult to achieve without an increase," said Mwilambwe.
The 7-2 vote in favor of the water rate increases also means the city’s water utility tax will be lowered, and the city will adjust how rates are determined for trash, sewer and stormwater services.
Council members Sheila Montney of Ward 3, who attended Monday’s meeting virtually, and Kent Lee of Ward 8, voted against the ordinance changes.
Also Monday, Gleason told the council a new Bloomington fire chief will be named Tuesday. He praised Chief Eric West, who officially retires Thursday, for stepping up to lead the department for the past several years.
As part of the meeting, the council also listened to an audit report about fiscal 2023 finances, and authorized paying $1.5 million for second-phase designs of a new water distribution system.
Bringing system up-to-date could cost $400M
Since 2019, Bloomington has been studying the best way to address its aging water system, while readying for the next decade’s water supply needs.
The city’s water plant, and the use of Lake Bloomington as a resource date back to 1929, and some of the city’s other water infrastructure is decades older. So it’s time for another “generational investment” in preserving the water supply, said water director Ed Andrews.
“That transmission main that ties the lake to the community, some 10 miles away, that is something that we want to keep pace with,” he said.
Other water resources include Evergreen Lake, and in special cases the Mackinaw River. Andrews, who joined Bloomington’s administration just two months ago, noted the city has almost 450 miles of water mains, and serves about 33,000 residential and commercial water customer accounts.
In all, the city’s water system is valued about $850 million, said Andrews, adding numerous state and federal mandates, and other needs outlined in the water study are pushing the direction of these projects.
Over the next decade, the city plans about $400 million in capital projects that would cover a number of areas, including:
- $125 million to replace water mains.
- $100 million to address lead service replacement. [Jurgens noted Bloomington treats its pipes, and so lead levels are acceptable. However, the city is mandated to replace all lead service lines.]
- Between $75 million and $100 million to improve water distribution.
- $50 million for water plant improvements.
Water rate study finds Bloomington trails communities
The upfront revenue boost to fund the 10-year plan comes from the significant three-year increases to water rates.
To offset this three-year hit to customers' bank accounts, the new ordinance also lowers the utility tax. So, the 3.75% tax drops to 2.75% this spring; 2.5% in 2025; and 2.25% in the third year.
To help low-income residents adjust to the increase, the amended ordinance waives this spring’s 33% increase for customers meeting low income-eligibility rules.
Council member Nick Becker, of Ward 5, said more needs to be done.
He said he understands the need to update the city’s water system. With the state and federal mandates in place, not making the changes now would mean prices only would go higher, and cost Bloomington more. But Becker is concerned that doubling the water rates in just three years is too much for many customers.
“We need to pass this. But we also, as a council, need to be responsible to the people of the community to find a way to reduce the burden on them — to find ways to offset this cost, in any possible way,” he said.
Bloomington hasn’t raised water rates in 12 years, noted Andrews. That’s left the city’s water rates far below comparable communities. So, part of the high increases to water rates is catching up, he said.
Another piece of Monday’s water vote is planning ahead. Starting in 2027, Bloomington water rates will increase annually, based on the consumer price index for water, sewer, stormwater and solid waste [CPI-WST] services. Using that CPI figure, which averages about 4.2%, is a more reasonable number, said Jurgens.
And, to create consistency, the city has decided to use the CPI-WST figure for making increases to not just its water rate, but also the sewer, stormwater and refuse rates. Until now those had been annually adjusted with a 3% increase.
Water distribution system contract
In a separate vote, the council awarded Wisconsin-based Donohue and Associates another $1.5 million to complete final designs and bidding for a plan to improve the city’s water distribution system.
In April 2022, the council OK’d a contract with the firm to handle the preliminary design. The projects include work on designing updates for ground storage tanks, distribution pump stations, elevated storage tanks, new transmission mains, and pipe upgrades.
In other business, the council:
- Heard the annual comprehensive financial report for fiscal 2023, as presented by audit firm Baker Tilly. The city received a clean, or unmodified opinion.
- Approved a $215,000 contract with All American Arena Products to replace the Bloomington Ice Center new dasher board system.
- Heard a reminder that December's only regular council meeting will be at 6 p.m. Monday, Dec. 4.
