FORT SMITH, Ark. — The Fort Smith Board of Directors got a first look at a completed water rate study during the Dec. 12 board meeting, which suggested raising current water rates by 50% in the first year.
There was also discussion of a half-cent sales tax increase to help offset the costs of providing water to customers.
In 2023, the board approved the city's water utility to perform a drinking water rate study. Director of Utilities Lance McAvoy along with David Naumann, a senior project manager with the company hired to perform the study, gave the presentation on Tuesday.
According to the study, the main factors that lead to cities needing to raise their water rates include:
- A general trend in lower use per account
- Inflation in operating and construction costs
- More stringent water quality regulations
- Aging infrastructure requiring renewal and replacement
In the breakdown of options, the average Fort Smith water bill in 2023 would go from $16.37 to $26.90 in 2025, then to $33.27 in 2028. Another option had the proposed rate growing to $41.77 by 2028.
Either way, Fort Smith Mayor George McGill said something has to be done. "This board is going to have to make a decision about the best option to make sure at the end of the day we continue to have the best water available. There is no other option," McGill said during the meeting.
The study states that Fort Smith's water bills haven't changed since 2011 despite the rising costs the city has made for the output of water utilities.
Directors will talk about how to move forward on a number of options during the next city board of directors meeting on Dec. 19.
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