OMU’s Utility Commission approved the issuance of bonds and a two-step rate increase to fund the $48.6 million project which would expand its newest treatment facility.
According to OMU, the decision to upgrade the Cavin infrastructure, which would eliminate the need for the aging Plant A facility, was made after it was determined Plant A’s filter building was settling, potentially compromising the integrity of the structure and straining aged cast-iron supply mains which will threaten the utility’s ability to provide an ample water supply.
All three water main breaks involved aging infrastructure located at the Plant A facility and involved mains dating back to the original construction and early years of its operation.
In order to fund this expansion, a total of $48.6 million in bonds are proposed to be issued and two rate increases would be required to repay those bonds: a 20% rate increase effective October 1, 2018 and a 12% adjustment on June 1, 2019. This would result in a total increase of $5.09 per month for the average residential customer. The average rate per month would increase to $19.98.
Both the rate increase and bonding ordinance will be considered for approval by the Owensboro City Commission in August.
