Knoxville (WVLT) -- The Knoxville Utility Board's new $739 million total budget for the 2008 fiscal year will include rate hikes for gas and water customers.
KUB's Board of Commissioners announced the plan today that if approved will increase the average gas customer's bill by about $3.50 a month and the average water bill by about $1.50 a month. Those numbers represent a 5.25% rate increase for gas customers and a 10% rate increase for water customers.
Officials of the utility also launched Century II, a program that will help manage and replace their electric, gas, water, and wastewater systems.
KUB's current water system was built about a century ago, and the new program will them to replace the pipes at a rate of 14 miles each year as opposed to the current five mile a year pace.
The new budget represents a $4.4 million increase over last year's budget.
The budget breaks down like this:
- $109.7 million - Operations and maintenance expenditures.
- $116.1 million - Capital investments
- $36.6 million - Debt service
- $24.3 million - Taxes and tax equivalent payments
Division wise the budget breaks down like this:
- $448 million - Electric division
- $155.3 million - Gas division
- $91.3 million - Wastewater division
- $44.1 million - Water division
The budget has only been proposed, and it will be considered during KUB's regular Board of Commissioners meeting two weeks from today. If it is approved at that meeting and a second meeting in June, the increases will take effect in September and first appear on your October bill.
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