2025 6 17 Regular Session Packet 1

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Agenda Item 
VIII. A.  Athens Utilities Board Presentation of their FY 2025-26 Annual Budget
Overview 
For FY 2026, AUB’s divisions face a year of significant capital investment and cautious 
financial management. The Power Division will issue $4 million in bonds to fund projects like 
the Englewood Substation rebuild and AMI infrastructure, with no rate hike planned aside from 
TVA passthroughs; net revenue is expected to dip slightly to $1.19 million. The Water Division 
plans a $6.5 million reservoir project funded by debt and grants, with steady revenue but reduced 
net income of $420,000. The Gas Division will implement phased rate increases beginning in 
July 2025, aiming to stabilize revenue (budgeted at $614,000), although cash is projected to fall 
by $210,000. The Wastewater Division requires over $6 million in new debt to fund aging 
infrastructure, including a $5 million biosolids equipment overhaul; despite this, it forecasts 
$762,000 in net revenue and stronger cash reserves. Lastly, the Fiber Division—still small but 
growing—projects $154,000 in net income and continues conservative expansion with modest 
capital spending and an expected cash balance of $571,000. 
Following discussion during the June 9, 2025 work session, the consensus was to place this item 
on the June 17, 2025 regular session consent agenda for approval. 
Action to Consider 
Motion, second, and majority vote are needed to approve. 
Affected Departments 
Finance  
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