2025 06 09 Work Session Packet 1

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Agenda Item 
III. 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. 
Action to Consider 
Consensus is required to move this item to the June 17, 2025 regular session for consideration. 
Affected Departments 
Finance  
1