Little Rock's sewer utility anticipates increases in both revenue and expenditures in 2020 as it implements the fourth in a planned series of five annual rate increases.
The Little Rock Water Reclamation Commission on Wednesday approved a $116 million budget for the coming year. Rates for 2017 through 2021, with a 4.75% increase to take effect each year, were approved by the Little Rock Board of Directors in 2015.
The utility considers an average residential customer to be one with a monthly wastewater output of 550 cubic feet. That customer will pay $39.44 per month for service, which includes an $11.81 line replacement fee and a 10% franchise fee. A customer with a monthly output of 550 cubic feet currently pays $34.23.
Customers will receive an insert in their regular bill in December explaining the new rate.
Of the $116,164,390 budget, $42.7 million will go toward capital projects required under a Consent Administrative Order that demands that sewer overflows in the city be corrected by 2023.
With completion three years out, Little Rock Water Reclamation Authority CEO Greg Ramon said that portion of the budget will be redirected when the time comes.
"What we will end up having is going to be more of a maintenance capital program that continues to keep the system in operation, much smaller than what we're seeing now," Ramon said.
The 2020 budget also includes about $29.2 million for operation and maintenance expenses, up about $1 million from the 2019 budget.
Metro on 11/14/2019