PACKET 2026 6 8 Work Session website

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It is important to remember that the long-term cost projections (budget years 2-5) and capital 
budget data for each division do not include any rate increases, grants, or additional debt.  This 
approach allows us to evaluate the data with the understanding that if work is executed as 
planned, some action (rate increase or bond issue/loan) will be necessary by the Board in order 
to maintain sufficient net revenues and/or a positive cash flow over the given time period.  
Positive net revenues are required by the State of Tennessee for the water, wastewater, and 
natural gas divisions. The Tennessee Valley Authority (TVA) regulates the rates and revenues 
of the power division. 
 
The bottom line for the FY 2027 budget is that we will be recommending a rate increase for the 
water division to our board.  From an infrastructure standpoint, we will have to issue debt to 
cover our capital investment needs for the power, water, and wastewater division.   If we are 
able to execute this planned scope within the year this will represent millions of dollars of 
bonds issued for these three divisions.