Louisville Water Company

The meeting addressed several significant operational and financial matters. Key discussions included elevating customer assistance programs through Drops of Kindness℠ and launching DropsofKindness.com. The Board approved a budget increase and awarded a construction contract exceeding $1,500,000 for the HVAC replacement and upgrade project at the John L. Huber Corporate Office Building. Furthermore, the contract for Construction Inspection Services with Gonzalez Companies was renewed for an additional year, albeit at a reduced overall estimated cost due to project completion. A resolution was approved to seek Federal financial assistance for emergency response expenditure reimbursement. Strategic direction for the Louisville Water Tower was outlined, shifting its focus to serve as an education hub, which included ceasing paid rentals. The Board also reviewed the Fourth Quarter 2025 certification of executed projects and awarded contracts for construction, procurement of materials/services, professional services, and sole source materials, totaling significant expenditures. Financial reports showed water consumption slightly over budget for 2025, with water revenue under budget for the year. Operational reports covered customer service metrics, including main break activity, safety milestones, and record-low estimated bills driven by AMI implementation. Engineering reported achieving all water quality goals for December 2025, following a comprehensive five-day inspection by the EPA with no findings. Finally, Human Resources reported the successful launch of the Oracle Human Capital Management System.

Key discussions included a report on an ongoing Environmental Protection Agency (EPA) inspection pursuant to the Safe Drinking Water Act. The Board celebrated Louisville Water's 165th anniversary and the 75th anniversary of Local 1683, highlighting the strong relationship with union members and their community service. The Board approved the 2026 Tariff and Water Rate Schedule, which included an average retail rate increase of 4.25% effective January 1, 2026, along with associated service installation fees and charges. The fourth quarterly 2025 dividend in the amount of $7,509,831 was declared. Revisions were approved for the 2026 Service Rules and Regulations, and the schedule for all 2026 Board meetings was adopted. The 2025 operating budget was amended to increase Infrastructure Replacement Reserve (IRR) funding by $6,211,913. A budget increase of $575,000 was authorized for Project No. 16087, the Crescent Hill Water Treatment Plant North and South Coagulation Building Roof Replacement. The results of the 2019-2025 Strategic Business Plan were reviewed, covering goals related to water quality, infrastructure investment, financial viability, risk management, customer relations, being an Employer of Choice, and business transformation. The financial report detailed consumption and revenue for November, showing net income exceeding budget for the month. Updates were provided on brand perception research, leak alerts, injury-free operations in Distribution, capital program expenditures, water quality metrics, and the final stages of the Disaster Recovery (DR) initiative, with the Oracle HCM Cloud implementation on track for a December 21, 2025 go-live.

The meeting primarily focused on the adoption of key organizational plans and budgets. A significant portion of the discussion involved the President/CEO's report, highlighting the Board's commendable response and infrastructure checks following the UPS Flight 2976 crash, including issuing a precautionary Consumer Advisory Notice for nearby customers. The Board formally approved the 2026 Annual Operating Budget and the 2026 Capital Budget, which included a projected average water rate increase of 4.25% effective January 1, 2026, and detailed capital allocation focusing heavily on Infrastructure Renewal ($130.5 million). The Board also adopted the 2026-2030 Strategic Business Plan, which sets priorities such as Water Quality, Infrastructure Investment, and Financial Viability. Financial reports indicated strong October results, with net income exceeding budget by $1.1 million, driven by higher consumption and revenue from commercial and wholesale customers. Additionally, Information Technology reported significant progress on Disaster Recovery goals and the Oracle HCM Cloud implementation, aiming for a December 21, 2025 go-live date.

This strategic business plan for Louisville Water outlines the organization's vision to lead the industry with superior quality, service, innovation, and value. It focuses on six key priorities: ensuring high water quality, investing in reliable infrastructure, maintaining financial viability, fostering trust with customers and stakeholders, becoming an employer of choice, and driving business transformation through strategic initiatives. The plan aims to continue the company's tradition of excellence and deliver exceptional value to its customers and communities.

The Board discussed regional water supply partnership activities and the formation of a coalition to support water system improvements. They reviewed and approved the 2022 Leadership Shared Operating Goals, Management Incentive Goals, and Corporate Performance Goals. An increase to the AMI Project budget was authorized, along with changes to related contracts. The Board also authorized the renewal of the Oracle Unlimited License Agreement and designated the President to execute documents related to Kentucky Infrastructure Grant Funding. The First Quarter 2022 Certification of Projects, Change Actions, Contracts & Bids was presented, and the financial report for March was given. Updates were provided on communication, marketing, customer service, distribution operations, engineering, production operations, human resources, and information technology.