Mishawaka homeowners could see a gradual increase in utility bills under a new proposal. The Common Council is considering a 3.75% annual hike starting in 2026 and continuing for five years.

Council President Gregg Hixenbaugh said the plan will make the increase manageable: “Even though we don’t like to raise rates, we can build it into people’s budgets to lessen the impact.” Officials call it a “stair-step approach,” part of a 20-year plan to keep utility rates sustainable.

Matthew Lentsch, the city’s Development and Governmental Affairs Director, said gradual increases allow the city to maintain aging infrastructure, meet evolving regulations, avoid bigger costs later, and secure long-term financial stability.