Louisville Water Company

The Board discussed the operational response to recent winter weather events and record water main break volumes. Policy updates were approved regarding Purchasing and Capital Projects Authorization thresholds. Specific project actions included a budget increase for the Velocity 65 infrastructure project and the approval of an unbudgeted contract for water infrastructure remediation following a plane crash. Additionally, the Board authorized an IT infrastructure contract for core production and disaster recovery storage upgrades. Updates were also provided on the investment portfolio, preliminary January financial performance, community marketing engagement, distribution operations, water quality metrics, human resources initiatives, and the transition of the Oracle HCM Cloud system.

The 2026-2030 Strategic Business Plan for Louisville Water outlines the roadmap for the utility to lead the industry in quality, service, innovation, and value. Its mission is to provide the highest quality water, fire protection, and related services to customers and communities. The plan is guided by seven core priorities: ensuring water quality, strategic infrastructure investment, maintaining financial viability, enhancing customer and stakeholder trust, fostering an inclusive work environment as an employer of choice, pursuing business development and partnerships, and strengthening safety, security, and risk mitigation to protect employees, assets, and the community.

The board meeting agenda includes a report from the Chief Executive Officer and various operational reports covering areas such as finance, communications, customer service, engineering, human resources, information technology, and legal. New business items involve declaring a first-quarter dividend and approving an unbudgeted storage project. The meeting also features a report from the Compensation and Benefits Committee, in addition to scheduled closed and executive sessions.

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.