Bloomington, Indiana, residents are about to see another everyday household expense rise.
Beginning in August, a typical household will pay about 14% more for water service, the Reporter-Times revealed. The paper added that for some businesses and other large-volume customers, the increase will be much steeper, reaching 48%.
What happened?
State regulators signed off on a new water rate arrangement for Bloomington that placed a larger share of system costs on commercial users, Indiana University, IU Health, and other high-volume accounts, according to the Reporter-Times.
Bloomington utilities officials maintained that residential users had been covering more than their share for years, per the publication. The city's request was trimmed in the settlement, but the Reporter-Times noted the utility will still be allowed to bring in roughly $5.4 million in added annual revenue.
Bloomington had asked for a systemwide revenue increase of 30.5%. The approved version lowered that to 25% while holding the typical residential increase to about 14%.
Starting in August, the Reporter-Times said a home that uses 3,000 gallons a month will have its bill increase by $3.72, bringing the total to $29.78. Rates for commercial and industrial customers will rise 38-48%, and the master meter rate for IU will increase 45%, according to the paper.
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"The agreed allocation … reflects movement toward cost-based rates, and incorporates gradualism to mitigate rate impacts," state regulators said, per the Reporter-Times.
Why does it matter?
The higher rates approved for businesses and major institutions could affect residents too.
Eric Spoonmore, president and CEO of the Greater Bloomington Chamber of Commerce, said the organization was "deeply disappointed" and argued that those added expenses will spread through Bloomington's economy.
"When a local bakery, laundromat, daycare, or grocery store faces a nearly 50% jump in its water bill, it cannot simply absorb that cost," he told the paper. "To stay open, those businesses must raise prices."
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If that plays out, it can only add to the concerns over cost of living that ripple through America.
What's being done?
City leaders maintained the rate increase was tied to long-term infrastructure needs, according to the Reporter-Times. Last year, a consultant told the Bloomington Utilities Service Board that the utility was not generating enough money to keep up with rising operating expenses and planned improvements to aging facilities, per the publication.
The Reporter-Times noted that new revenue was slated to support replacement of old water mains along with upgrades to storage and treatment systems and improvements to monitoring equipment.
During the rate case, the city's plan drew objections from large customers and wholesale water providers, who challenged both the magnitude of the increase and the redistribution of costs.
In the end, regulators approved a less aggressive version of Bloomington's proposal. Officials told the Reporter-Times that consumers will receive notifications of the new rates among numerous efforts to ensure the changes are not a surprise.
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