Bills for Sherwood Wastewater customers will show the approved 15 percent increase in the sewer rate in two more billing cycles, a city official said.
The increase -- approved last week by the city Council -- applies only to the wastewater-treatment cost for the Sherwood utility that is shown as a separate sewer-use charge on its customers' monthly Central Arkansas Water bills. Sherwood Wastewater is one of four utilities that provides wastewater treatment for Sherwood residents, but the only one affected by the increase.
The Sherwood City Council approved the rate increase Monday night on the recommendation of the Sherwood Sewer Committee. Aldermen also passed an emergency clause that puts the increase into immediate effect, although calculating the new rate into billings takes time. The utility has about 5,000 customers, all within the city limits.
"It usually takes 30-45 days to get the rate programmed in," Sherwood City Engineer Ellen Norvell said. "The ordinance said Jan. 1 [effective date], but it will probably be more like the March billing, if everything goes normally."
The $13 minimum charge for sewer use paid monthly will increase to $15 with the 15 percent increase, affecting more than 40 percent of Sherwood Wastewater customers, Norvell said. The minimum amount charged is based on an average winter water consumption of 400 cubic feet. There are no other franchise fees added.
"Sherwood does not have a franchise fee" that is passed through to its ratepayers, said Central Arkansas Water spokesman Douglas Shackelford. The minimum billed, he added, is "just a flat sewer rate of $13 that will go up to $15 for the average amount of consumption."
For every 100 cubic feet over the 400 cubic feet amount, another $3.75 will be added under the new rate. The average user bill applies to 600 cubic feet, Norvell said. For those ratepayers, their sewer charge will go up $3, from $19.50 to $22.50 on the monthly bills.
"The bills do fluctuate," Norvell said. "It's based on your winter's water usage. Whatever the average winter use is from October through March, that is what your bill is based on for the next year.
"Some do use a lot more, but it's very few," she said. "It's a pretty wide range after you get past the 40 percent who use the minimum."
The sewer-rate increase was recommended in order to offset higher expenses for wastewater treatment for the utility, former Sherwood Wastewater manager Dennis Benson said last month. Benson retired Dec. 31.
The charges involve costs from North Little Rock's Five Mile Creek treatment plant where North Little Rock Wastewater treats the wastewater from about 2,000 of Sherwood Wastewater's customers, Benson said.
Treatment costs charged by North Little Rock Wastewater to Sherwood rose from $330,990 in 2013 to $491,923 in 2016, according to figures provided by Marc Wilkins, the North Little Rock utility's executive director.
"Treatment costs charged to Sherwood are based on a pro rata share of the actual costs for the previous year," Wilkins said. "The formula to determine treatment was established in a court-ordered settlement."
The cost for wastewater treatment is the Sherwood utility's second-highest expense behind personnel costs, Benson said last month.
The Sherwood City Council will review the sewer rate at least annually as stipulated under the ordinance that unanimously passed Monday. The legislation states that the annual review will allow the city to "revise the rates as necessary to ensure that adequate revenues are generated to pay the costs of operations and maintenance," among other expenses.
The utility's last rate increase took effect in January 2015.
Metro on 01/29/2017