The average residential customer would see a $1.90 increase in their Owensboro Municipal Utilities water bill starting in March 2024 if OMU adopts the 9% increase proposed at Thursday’s board meeting. OMU also proposed an additional raise in March 2025.
“Some of our drivers for our rate adjustments are higher-than-anticipated inflation combined with increased chemical costs as well as supply chain issues,” said Manager of Planning Laura Chapman. “That resulted in declining days of the cash on hand metric, which is leaving us in a cash position that could concern our rating agencies.”
According to OMU, the average residential customer revenue would increase 9.6% in Fiscal Year 2024 and 9.2% in FY25, due to average monthly bill increases from $19.85 to $23.75 per month (a $3.90 increase over the 2-year period).
OMU will remain one of the systems with the lowest water rates in the region, officials said, with roughly .048¢ per 5/8″ meter & 500 cubic feet in March 2025 with this adjustment.
The board did not vote on the rate change. The finance team will now reevaluate the language and prepare a resolution along with holding a public hearing in January. Should the board approve the change, the ordinance will then be read by the City Commission twice in February, with an anticipated approval date of February 20, 2024, and an expected effective date of March 1, 2024.
