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Water, Sewer Rates Seeing Significant Increase After Mandated Rate Study
RISON - Residents and businesses within the City of Rison will be feeling the financial impact of a new state law next month after the Rison City Council approved increases in the water and sewer rates over the next two years to put it compliance with Act 605.
Mayor Charles Roberts estimated the price hike, as mandated by the state law, will cost the average customer about $20 more per month beginning July 1, 2023, and about another $20 more per month beginning June 1, 2024.
"It's going to hurt people," Roberts told the city council during its regular monthly meeting Monday night, acknowledging that people are already suffering with rising prices due to inflation.
Act 605 of 2021, according the Arkansas Department of Agriculture website, tasked retail water providers in the state with additional responsibilities in managing and operating their water systems, with some exceptions.
Those new responsibilities, according to the website, include having a rate study conducted by July 1, 2024, and one every 5 years after that or before any major development project. The rates determined from that study must be implemented within one year of the completion of the study, or two years if the recommended rates increase the provider's rates by 50 percent or more.
Act 605 states that failure to complete a rate study or implement the required rate increases will result in that water provider being declared in fiscal distress. Rate studies must be filed with the Arkansas Legislative Audit and the Arkansas Department of Agriculture's Natural Resources Division.
The water and sewer rate study conducted for Rison by the Arkansas Rural Water Association recommended that the minimum rate for both water and sewer remain the same: $15.15 for water and $22.60 for sewer. However, the study did recommend significant increases for the 1,000-gallon rates for both water and wastewater.
The water rate study recommended tha...