The City of Bloomington is increasing the rate they charge for water. This affects not only the price that Bloomington residents pay for water but also the price Hudson residents pay for water because Hudson gets water from Bloomington.
Residents' water bills pay for the treatment of the water they use at their residence, but also pays for the maintenance of the infrastructure and labor needed to deliver and treat that water.
At their November 27th, 2023 meeting, the Bloomington City Council voted to approve a 33% increase in water rates each of the next three years. The first increase would be in May of 2024 with an additional increase of 33% in each of 2025 and 2026. The notes from the meeting relating to this vote are on pages 125-132 of the “Agenda Packet” for the November 27th meeting linked here:
https://www.bloomingtonil.gov/government/city-council/meetings-agendas
The city notes that because their rates haven’t kept up with inflation (Bloomington hasn’t increased rates since 2011) and the age of their infrastructure, they are having to impose these large increases now. You can read more in the City Council notes and on local media websites.
How are Hudson rates determinedThe city of Bloomington currently bills the Village of Hudson $3.26 per 100 cubic feet of water used by the village. Bloomington residents are currently billed $4.01 for that same amount of water. That 18.7% discount in price charged to Hudson vs a resident of Bloomington is to acknowledge that Hudson residents shouldn’t have to pay for the last bit of infrastructure needed to hook up homes in Bloomington. Hudson residents do need to pay for the treatment of the water at the Bloomington water plant and the large amount of infrastructure and labor needed to deliver that water. The cost per 100 cubic feet Hudson is charged by Bloomington will increase to $4.34 in 2024, $5.77 in 2025, and then $7.67 in 2026.
The Village of Hudson has a water tower and distribution infrastructure it must maintain. To maintain this infrastructure, the village takes the amount of water a resident uses, calculates the cost to purchase that water from Bloomington, and then charges the Hudson resident double that amount. The money Hudson collects from residents on their water bills is kept separate from other funds in the village budget. It is exclusively for the water and infrastructure.
How will rates increase for Hudson residentsThe Village of Hudson Board of Trustees approved passing the 2024 33% rate increase onto Hudson residents at the April Board meeting. The rates charged to Hudson residents are codified into village codes so the increases in 2025 and 2026 will require board votes early in those calendar years. The Hudson Village Board needs to discuss and understand what increases should be passed onto residents in the coming years to cover needed upgrades and maintenance to the Hudson water infrastructure.
Hudson water infrastructure needsThe Village of Hudson has already begun replacing some parts of old infrastructure. Fire hydrants decay over time and the village has many that are over 50 years old. Some replacements were purchased in the 2023 budget year, and you may see village employees out replacing them. A quantity of saddle valves were also purchased. A saddle valve is the physical connection from a water main to connect a residence. The saddle valves installed in the older part of Hudson were iron and many have rusted away. Village employees will be installing new stainless-steel saddles over time to make sure the residence connections are securely attached to the mains and aren’t leaking and wasting water/money.
A bigger future cost for Hudson is related to the Asbestos Cement (AC) pipe (aka Transite) mains installed in the early 1950’s. We have 51 blocks of Transite mains. In the past few years, the EPA has started requiring testing of the water that flows through Transite lines. There are growing concerns about the safety of Transite water pipes. When these pipes need to be replaced it will cost an estimated 3-6 million dollars (depending on how much of the work the village would do itself and inflation etc). Whether we build the fund to replace those pipes over time or would take on debt to replace them is a topic for discussion.
Please engage in the discussionYou are encouraged to attend monthly Village Board meetings and view the recordings on Youtube to stay informed of the issues being tackled by the village. Your feedback and comments are appreciated.
Reference:
https://www.bloomingtonil.gov/departments/finance/hub-utility-billing/utility-fees