BENTONVILLE — An engineering firm hired by Bentonville to study its water and sewer rates recommends the city increase its sewer rates by 25 percent over the next two years.
The impact to the average household sewer bill would be about $9.92 a month, according to the study. The bill would jump from $37.43 a month to $47.35.
By The Numbers
Bentonville Wastewater Rates
Residential
Current Proposed 2013 Proposed 2014
Facility Charge $10.60 $12.19 $13.41
Consumption Costs* $6.08 $6.99 $7.69
*per 1,000 gallons
Source: City of Bentonville
HDR Engineering presented its findings to City Council members at a committee meeting Monday night. The council could vote on the recommendations at a meeting at 6 p.m. today at the Community Development Building, 305 S.W. A St.
The increases will cover higher than projected costs associated with the Northwest Arkansas Conservation Authority and requirements of possible environmental mandates, according to Tom Gould, an engineer.
The firm proposes increasing the rates by 15 percent in March 2013 and by an additional 10 percent in January 2014. It proposes 15 percent increases over the following three years, though Gould suggested the city review rates again in 2015 before the additional increases.
The city is facing a consistent shortfall between revenue and expenses. The study shows 2013 revenue of $10.5 million but expenses of $12.3 million.
Much of the discrepancies fall back on costs for Northwest Arkansas Conservation Authority, a regional wastewater treatment plant with 10 members. Of those members, only Bentonville and Tontitown are using the plant. The two cities are shouldering the debt and operation costs of the plant. Its costs represent 48 percent of the city’s wastewater revenue requirements, according to the study.
“When NACA originated, there were to be more users for sure,” said Mayor Bob McCaslin. “But for a variety of reasons, they dropped out ... . Would we have been better off to forgo a regional approach? Personally, I doubt it.”
Regional cities will likely face environmental regulations regarding phosphorus levels that are already hanging over Bentonville, said Mike Bender, director of the city’s Public Works Department. When cities re-permit their wastewater facilities, the Environmental Protection Agency could put forward lower phosphorus levels. Northwest Arkansas Conservation Authority is already equipped to meet the lower requirements.
The requirements could push additional cities to the plant, reducing the financial burden for Bentonville. Cave Springs, Lowell, Highfill and Elm Springs are considering hooking up to the treatment plant, McCaslin said. New members would have to pay a buy-in fee to reimburse some of the debt service shouldered by Bentonville and Tontitown and then help pay operation and maintenance costs.
Gould said he recommends the city budget for $10 million in additional wastewater costs to help deal with potential environmental mandates. While the Northwest Arkansas Conservation Authority meets 0.1 phosphorus level requirements, the city’s treatment plant on Northeast A Street does not.
He suggested the city set aside $1 million per year after the city retires two bonds in 2015. The city pays $1.8 million per year on the bonds. The $1 million a year commitment would help pay for debt associated with meeting the environmental requirements.
Bentonville residents already have higher sewer bills than other cities in the region, according to the study. Mary Baggett, a council member, said she hates to see rates go up, but the increases seem unavoidable.
The firm also evaluated water rates and found the department to be in sound financial state. It did not recommend any increases over the next five years for water rates.
Aldermen are slated to vote on the rates tonight, but a discrepancy in numbers between the study and the city budget could stall the vote. Gould said he would meet with city officials to sort out the issue and report back to aldermen before the council meeting.