SPRINGDALE -- The Water and Sewer Commission on Wednesday approved its 2021-2022 operating budget of $37 million. The budget also allows the commission to set aside $11 million for construction projects.
The utility's fiscal year begins Oct. 1.
"It's pretty much business as usual," said Chris Clark, director of finance for Springdale Water Utilities. "It's a boring budget."
"Boring is good," replied Chris Weiser, commission chairman.
The utility expects $39,821,538 in revenue, up 6% from the 2020-2021 budget of $37,662,500. Clark said much of this additional revenue will come from a rate increase to take effect Oct. 1.
Residential water customers will see bills rise 20 cents per 1,000 gallons for use over 1,500 gallons. This increase is part of a gradual rate increase that went into effect Jan. 1, 2020, that raises rates by 20 cents each year for five years, Clark said. Sewer service fees are increasing by the same rate.
Operating expenses of the Springdale water utility are budgeted at $36,997,938, up 7% from $34,662,500.
Buying treated water from Beaver Water District and distributing the water are the utility's highest expenses, according to the numbers in the budget. Beaver Water this year increased what the local utility pays for the water.
The utility purchased 6,403 million gallons at $1.38 a gallon in 2020-2021. Starting Oct. 1, the utility will pay $1.41 a gallon.
The 2021-2022 budget projects $9 million to purchase 6,439 million gallons of water and $6.7 million to deliver it.
The water service side of the utility is projected to operate with a budget of $19,654,338, plus $1.9 million for capital projects such as trucks and equipment.
The wastewater side of the utility has a budget of $17,343,600 and $5.8 million for capital projects.
The utility expects a 1.6% increase of customers from July 2021 to July 2022 -- 37,258 accounts, up from 36,684. Sewer customers also are expected to increase from 29,438 to 30,693.
The Springdale utility also provides water service to parts of Johnson and Elm Springs, water and sewer service to parts of Lowell and water service to customers formerly served by the White River Rural Water System.
Each city's fee for services are different.
The 2021-2022 budget shows an increase in labor and overhead expenses to allow for performance-based pay raises and the possible addition of staff positions, said Heath Ward, executive director of the utility. The commission must approve all new positions.
Staff continue to expect costs of the $16 million sludge dryer at the Waste Water Treatment Plant to decrease as it comes into full operation, Ward said.
He noted the dryer has eliminated trips and dumping at the landfill. The utility also might have the opportunity to dry sludge for water utilities in other Northwest Arkansas cities, he said.