Why does the City of Henderson appoint a Commission to manage the Henderson Water Utility rather than manage it as a part of City government, like the Gas Department?
The original Water and Sewer Commission was appointed in the 1950’s. This was done to establish favor with the companies that provided the bonds to finance improvements to the system. In essence, the bonding companies wanted the “politics” taken out of the local utilities to insure there was a stable financial base to repay the principal and interest on the bonds. Many such Commissions were established in Kentucky during this time period. The practical significance of remaining with this form of management is the Utility is financially self sufficient and receives no tax revenue for its operation. All revenues of the Utility come from user fees. In essence, the Utility is operated like a business and is somewhat separated from the politics of City Government, especially as it relates to financial matters.
