The City's first water system was established in 1875, with the Water Plant and Lake Bloomington coming online in 1929. Accordingly, portions of the City's water infrastructure have been around for nearly 150 years. This infrastructure has served the City extremely well and has a rated capacity of 24.5 million gallons per day. This would be equivalent to the City producing 196 million water bottles every day.

With the age of the City's water system, a "generational" investment is required to comply with new state and federal mandates and to ensure the continued quality of the City's drinking water. This investment will:

1. bring the City into compliance with all applicable standards;
2. help preserve the City's water supply as one of its invaluable resources; and
3. maintain and enhance the City's capacity for growth.

The capital projects will include approximately:

1. $75M to $100M in systemwide distribution improvements;
2. $100M in lead service replacement;
3. $125M in water main replacement; and
4. $50M in plant improvements.

Various government loans and potential bonding will be used to pay for the projects, but an increase in water rates will be required to cover this new debt. Based on a current regional water comparison, the City's water rates are well below comparable communities. As the City has not increased water rates since 2011, a large part of the increase is necessary to catch up with inflation and the lack of increases. To accommodate the 10-year plan, and to help residents and customers acclimate to the new rate schedule, the City is implementing a phased-in approach for the rate increases over three years. Water rates will increase 33 percent on May 1, 2024, another 33 percent on May 1, 2025, and then a final 33 percent on May 1, 2026. Thereafter, the rates will increase by the CPI index for water, sewer, storm water, and solid waste (CPI-WST).

To help low-income residents adjust to the increase, the Department established a program wherein customers that meet the poverty guidelines will receive a 33% discount. In addition, the City Manager will explore other resources that provide assistance for water utilities and update the website to share said resources. Additional needs-based assistance programs may be presented and approved by the City Council in the future. See the Low Income Refuse and Water Fee Discount tab below for more information and to apply for the discount.

Since the City also imposes a utility tax on water at a rate of 3.75 percent, the tax will be lowered over the next three years so that customers do not experience additional costs for water beyond the intended rate increases. As a result, the tax rate will lower to 2.75 percent effective May 1, 2024, then will go to 2.5 percent and 2.25 percent in the following two years.

The City offers discounted rates for refuse collection and water service based on an individual’s income. The qualifying criteria for this discount is based on the federal poverty guidelines as provided in the Federal Register issued by the U.S. Department of Health and Human Services each year. In order to receive the discount, an individual or household must provide proof of income that is below the federal poverty guidelines. Applicants must submit this form and proof of the last 30 days of income (see below), with social security number removed or redacted. Click here to view the Low Income Refuse and Water Fee Discount Application.

BLOOMINGTON CITY CODE (REFUSE FEES): Chapter 21, Section 301.8, Low-Income Refuse Fee Discount, states the following:

1. The City may offer a discounted rate for refuse collection based on an individual's income. The qualifying criteria for this discount shall be based on the federal poverty guidelines as provided in the Federal Register issued by the U.S. Department of Health and Human Services each year.
2. Effective May 1, 2014, an owner and/or occupant of a dwelling unit for which refuse service is provided by the City, whose income level falls within the poverty guidelines, shall pay a fee in the amount of $16 per month, per single-family dwelling.
3. Effective and beginning May 1, 2019, the refuse fee outlined above shall increase annually on May 1 of each year, at a compounding rate of 3% over the rate from the previous year.

BLOOMINGTON CITY CODE (WATER FEES): Chapter 27, Section 27-501 M, Financial Assistance, states the following:

1. The City Manager, through Executive Order, shall develop a needs-based assistance program based on the federal poverty guidelines as provided in the Federal Register issued by the U.S. Department of Health and Human Services each year. This program shall provide a 33% discount effective May 1, 2024.

The Finance Department, which handles utility billing, has information on utility payment assistance, including payment installment agreements and financial resources from local community agencies who may be able to provide assistance to City of Bloomington water utility customers. Click here for more information on these resources.

The Water Department provides Water Service Medical Certification for those who are certified by a licensed physician through the Written Medical Certification process. Click here to view the Written Medical Certification form for Water Service, Waste Container Assistance, and Alley Plowing Assistance for more details.

Initial Medical Request: When a resident with a medical need to keep water turned on calls Public Works, during regular business hours, to notify the department of their need.

Initial Medical Certification: When a licensed physician calls to notify Public Works that the licensed physician is preparing a Written Medical Certification.

Written Medical Certification: The written form provided by Public Works and completed by a licensed physician that provides evidence that a resident has a medical need for Water Service, Waste Container Assistance, or Alley Plowing Assistance (submitted by mail, fax, or e-mail).

Effective May 1, 2024, the cost of City water shall be ascertained according to the amount of water used during the month for which the charge is made and shall be graduated as follows:

RATE PER 100 CU FT
	Inside City	Outside City
First 2,300 cubic feet per month	$5.33	$12.04
Next 11,700 cubic feet per month	$5.14	$11.78
Next 486,000 cubic feet per month	$4.54	$10.30
Over 500,000 cubic feet per month	$3.57	$8.13
Bloomington Township		$5.33
Village of Hudson		$4.33
Village of Towanda		$4.33

Effective May 1, 2025, the cost of City water shall be ascertained according to the amount of water used during the month for which the charge is made and shall be graduated as follows:

RATE PER 100 CU FT
	Inside City	Outside City
First 2,300 cubic feet per month	$7.09	$16.02
Next 11,700 cubic feet per month	$6.84	$15.67
Next 486,000 cubic feet per month	$6.04	$13.70
Over 500,000 cubic feet per month	$4.75	$10.82
Bloomington Township		$7.09
Village of Hudson		$5.76
Village of Towanda		$5.76

Effective May 1, 2026, the cost of City water shall be ascertained according to the amount of water used during the month for which the charge is made and shall be graduated as follows:

RATE PER 100 CU FT
	Inside City	Outside City
First 2,300 cubic feet per month	$9.43	$21.31
Next 11,700 cubic feet per month	$9.10	$20.84
Next 486,000 cubic feet per month	$8.04	$18.23
Over 500,000 cubic feet per month	$6.32	$14.39
Bloomington Township		$9.43
Village of Hudson		$7.66
Village of Towanda		$7.66

Effective May 1, 2027, and every year thereafter on May 1, the water rates set forth in the above table shall be increased by CPI-WST (Water, Sewer, and Trash Collection), based on an average of the previous calendar year, or similar index if CPI-WST is not available. 

Effective May 1, 2024, the rates charged for water shall in no case be less than the monthly service charge which shall be determined by the water meter size as follows:

May 1, 2024 - April 30, 2025
Meter Size	Inside City	Outside City
5/8 x 1/2 inch	$1.66	$3.66
5/8 x 3/4 inch	$6.65	$8.65
3/4 inch	$7.98	$9.98
1 inch	$10.64	$13.30
1 1/2 inch	$13.97	$17.29
2 inch	$21.28	$26.60
3 inch	$37.24	$51.87
4 inch	$61.18	$87.78
6 inch	$122.36	$174.23
8 inch	$194.18	$260.68

(City Code Ch. 27 Sec. 27) 7.48 Gallons = 1 cubic foot

Effective May 1, 2025, the rates charged for water shall in no case be less than the monthly service charge which shall be determined by the water meter size as follows:

May 1, 2025 - April 30, 2026
Meter Size	Inside City	Outside City
5/8 x 1/2 inch	$2.21	$4.86
5/8 x 3/4 inch	$8.84	$11.50
3/4 inch	$10.61	$13.27
1 inch	$14.15	$17.69
1 1/2 inch	$18.57	$23.00
2 inch	$28.30	$35.38
3 inch	$49.53	$68.99
4 inch	$81.37	$116.75
6 inch	$162.74	$231.73
8 inch	$258.26	$346.70

(City Code Ch. 27 Sec. 27) 7.48 Gallons = 1 cubic foot

Effective May 1, 2026, the rates charged for water shall in no case be less than the monthly service charge which shall be determined by the water meter size as follows:

May 1, 2026 - April 30, 2027
Meter Size	Inside City	Outside City
5/8 x 1/2 inch	$2.94	$6.47
5/8 x 3/4 inch	$11.76	$15.29
3/4 inch	$14.12	$17.64
1 inch	$18.82	$23.53
1 1/2 inch	$24.70	$30.58
2 inch	$37.64	$47.05
3 inch	$65.87	$91.75
4 inch	$108.22	$155.27
6 inch	$216.44	$308.20
8 inch	$343.49	$461.12

(City Code Ch. 27 Sec. 27) 7.48 Gallons = 1 cubic foot

Effective May 1, 2027, and every year thereafter on May 1, the water rates set forth in the above table shall be increased by CPI-WST (Water, Sewer, and Trash Collection), based on an average of the previous calendar year, or similar index if CPI-WST is not available.

To maintain consistency and improve accuracy, the annual rate increases for sewer, storm, and refuse will be based on CPI-WST (Water, Sewer, Storm Water and Solid Waste (Trash Collection) instead of a flat, three percent increase.

It should be noted that the rates are based on the City's current best projections and will continue to be reviewed. They may need further revision, either up or down, based on actual expenses and funding sources.

Click here to visit the Utility Fees page for more information on these impacts.