SPRINGDALE -- Higher rates for water and sewer services will affect Springdale Water Utilities customers starting Jan. 1. The City Council approved the rate increases 7-0 Tuesday night.
Water rates will increase over the next five years by 20 cents for every 1,000 gallons a customer uses after the first 1,500 gallons.
Sewer service will increase by the same amount.
Residential customers pay $3.07 for water and $2.76 for sewer after the first 1,500 gallons.
The base prices for water and sewer services also will increase -- for the first time in 20 years, said Heath Ward, executive director of the municipal utility. Springdale Water Utilities last increased rates five years ago.
The minimum fee for service on all accounts will cost $10 a month for both water and sewer. That minimum service charge covers a customer's first 1,500 gallons of water and sewer use each month, as well as things such as reading the meters, postage for the bills and system repair, Ward said.
The minimum service charge for water is $6.22 per month for the first 1,500 gallons for customers in the city. Sewer is $5.42 for the same.
Ward said the increase in the base rate for residential, commercial and industrial customers means everybody pays a little bit from the infrastructure needed to deliver water and sewer services.
Springdale customers also pay for trash, recycling and bulky waste removal through water bills, Ward noted.
Industry accounts for about 40 percent of the water and sewer use in Springdale, Ward said. The companies, mostly in the poultry industry, face the same 20-cent raise for water and sewer use as well as the raise to $10 for service.
But customers using large amounts of water and sewer pay on a declining scale. After using 1 million gallons for each, the per-1,000-gallon cost for water goes to $2.80 for water and $2.92 for sewer -- even for individual residential users, Ward added.
Industrial customers are paying $2.60 for water and $2.76 for sewer after a million gallons.
Ward said a poultry plant in Springdale might use 30 to 40 million gallons of water a month. Those bill might reach $10,000 to $12,000.
"We understand the need to occasionally reassess utility rates," said Derek Burleson, a Tyson Foods spokesman said in an email Tuesday. "We support the city's efforts to responsibly ensure a reliable, quality source of water for Springdale."
"All you have to do is take a tour of our existing water facilities to appreciate what we've accomplished," said Councilman Mike Overton. "The way the Water and Sewer Commission and the department run and manage the system does not just lower costs but also is able to accommodate our citizens and continuing growth."
Ward and his staff presented a five-year plan to the council and also visited with most industry executives.
Ward said he doesn't expect to ask for another rate increase in the next five years. He told the council the staff spent about a two years investigating the utility's financial situation and needs for the future.
He said the utility needs to focus on three areas: water and sewer service in the western parts of the city, expansion of the city's waste water treatment plant and "very aggressive" inspection and maintenance of existing infrastructure.
The utility also provides service to various entities in the area including water service to parts of Johnson and Elm Springs, water and sewer to parts of Lowell and water to customers formerly served by the White River Rural Water System, Ward reported.
And each city's minimum charge is different.
Customers in different cities pay different prices because each has its own contract with the utility, Ward said. Elm Springs receives only water service. Lowell's monthly sewer fee includes charges to pay off bonds the city holds. White River customers pay costs the Springdale utility took on when Springdale and Fayetteville bought the system.
The new water rates show a $11.75 base cost for the first 1,500 gallons for customers in other communities. Sewer rates will be $11.25 for the first 1,500 gallons.
"Compare our water service to any of our neighboring cities," Overton said. "We get a bargain."
NW News on 11/13/2019