Bowling Green staff propose 2026 utilities budget with rate increases and $10M short-term borrowing

BORROWING, RATE PROPOSALS AND PROJECTS: City utilities staff presented a draft 2026 utilities budget that would raise customer rates and use loan financing to cover several large capital projects.

Brian, a city utilities staff presenter, told the Board of Public Utilities at a work session that the draft budget includes a 5% electric rate increase effective July 2026, a 7% water rate adjustment in April 2026 and a 10% sewer rate adjustment in January 2026. "We did include a 5% rate increase for July 2026," he said. "We are recommending a 7% water rate adjustment in April, of '26." He also said, "We're looking to recommending a 10% rate adjustment in January '26." These proposals are recommendations; the board will review rate schedules after a cost-of-service study and could take formal action in late 2025 or early 2026.

Why it matters: Staff said revenue shortfalls and rising costs — especially wholesale power, capacity and transmission charges passed through by PJM and FirstEnergy — make rate adjustments necessary to meet bond covenants, fund operations and preserve reserves. Brian warned that the Water & Sewer Capital Improvement Fund (the "4017" fund) will receive a…