No BGMU rate hikes in budget approved Monday

Published 12:00 am Tuesday, June 10, 2003

Bowling Green Municipal Utilities approved annual budgets for its divisions Monday evening, projecting no BGMU-generated rate increases. Chief Financial Officer Diana McQuady said that she is aware the Tennessee Valley Authority, from which BGMU buys its power, is talking about a rate hike; but that isnt calculated in BGMUs budget because it would be a straight pass-through with no additional mark-up. She anticipated no rate increase this year for city water and sewer customers. Both the Electrical and Water-Sewer division budgets include the purchase of an automated meter-reading system. The utility intends to do an additional $10 million bond issue sometime this year, McQuady said, to help pay for major projects such as the ongoing water treatment plant expansion and a new lift station near Western Kentucky University. The board of directors also approved applying for a $4 million low-interest loan from the Kentucky Infrastructure Authority for the water treatment plant project, which is expected to cost $13.3 million. With the help of consultant Greg Carlson, BGMU staff examined bids from several local insurance brokers. The board accepted the staff recommendation to continue coverage with Anthem and Delta Dental for the next six months, then re-examine other companies proposals. The board approved a three-year, $1.2 million contract with A&G Tree Surgery of Bowling Green for electric line and right-of-way clearing services, and a two-year contract with Comfuel of Bowling Green to provide gas for BGMU vehicles. Directors approved buying a horizontal boring machine to cut passages for utility lines under roads without disrupting traffic. As local roads grow, it becomes more difficult to open surface cuttings, Water-Sewer Systems Manager Mike Gardner said, so the utility has been planning to buy such a machine for several years. The board chose the low bid of $43,827 from Ditch Witch of Shepherdsville.

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