Rate Hikes Should Sustain Water Systems

RISON - While the City of Rison has yet to see exactly how much additional revenue the water and wastewater departments will see as a result of the rate hikes implemented last month, Mayor Charles Roberts said he hopes it is enough so the departments no longer need financial support. Rison was the first public water provider in Cleveland County to raise its water and wastewater rates under Act 605 of 2021, a new law that establishes oversight of retail water providers in the state. The act requires all retail water providers to conduct a rate study and then implement the rates determined by that study. Under the law, refusal to implement the rates will lead to the state taking over the water/ wastewater system. Roberts said the city has had to provide financial support to the water department for several years, and the new rates should address that ongoing issue. "I'm hoping we can stop robbing from our other city budgets to support the water system," he said. The rate study for the City of Rison conducted by the by the Arkansas Rural Water Association (ASWA) proved that out. According to the ASWA report, Rison generated a total of $298,944 in revenue from both metered and non-metered water sales while spending $368,636 to operate the department. That was a deficit of $69,692 for the year studied. The study showed a similar situation with the city's wastewater department as it generated $233,116 in revenue but had $250,116 in expenses, a deficit of $17,000. Combined, the city's water and wastewater departments had a combined deficit of $86,692. Expenses, according the study report, included salaries, insurance, utility costs, maintenance and other repair costs, capital costs, rent (if applicable), chemical costs, equipment costs, taxes, office supplies costs, engineering, legal and audit fees, etc. Roberts said the state law not only requires the provider to generate enough money to p...