The Greeneville Water Commission on Tuesday approved the Greeneville Water Department's financial forecast, or budget, for the 2008-09 fiscal year.

The forecast shows revenue of $6,825,000 and expenditures of $6,637,550, leaving net income of $187,450.

The forecast includes a 3 percent salary increase for all Water Department employees and no increase in water or sewer rates, according to Ken Earl, water superintendent.

The forecast also includes capital funding totaling $2,608,650.

Of that amount, $2,303,605 is local funding, and $305,045 is grant funding, Earl said.

The largest planned capital project, he said, is replacement of the digester at the wastewater treatment plant. This project will cost a total of $1 million, Earl said, with $600,000 planned in the 2008-09 forecast.

The digester project includes $250,000 in Economic Development Agency (EDA) grant funds, Earl said.

Another large planned capital project is the replacement of the liner of the reservoir at the water plant, which will cost $300,000 in local funding, Earl said.

Also in planned capital projects is installation of a 12-inch water line along a portion of the Newport Highway, which will cost $250,000 in local funding, Earl said.

Commissioner Joe Waggoner voted against the forecast, stating that the income would not be enough to cover the planned capital expenses.

Agreement With Mosheim

In other business, the commission approved an agreement with the Town of Mosheim regarding customers who receive sewer service from Mosheim and water service from the Greeneville Water Department.

According to the agreement, the water department will have the authority to cut off water service to those customers who do not pay their sewer bills, Earl said.

A report was given on the beginning of work to replace a water line along a portion of West Main Street.

The work will be done between the Crescent building and the former location of Interstate Supply, according to Earl.

The project to replace a 60-year-old, two-inch line with a six-inch line is expected to take up to a month to complete, depending on weather, according to Earl.

He said motorists will experience sporadic delays during the project and may want to consider an alternate route.

The project is designed to prevent future water-line breaks and to increase fire-hydrant service in the area.

The new line will be 1,380 feet long, according to Water Department engineer Eric Frye.