Bentonville City Council Discusses Potential Rate Increases for Water Bills
The Bentonville City Council recently held a workshop to review and discuss potential rate hikes for water and wastewater services. The meeting highlighted ongoing efforts to balance the delivery of safe and reliable services with the financial needs of the city.
One key area of discussion was the need for increased operating costs. According to Collin Drat, a senior manager with Raftelis Financial Consultants, Inc., the city is facing higher expenses due to inflation, increased salaries, and additional positions needed as the city grows. This trend is expected to continue as the city updates its 2018 master plan, allowing for more accurate predictions of future infrastructure needs[1].
Raftelis has been analyzing the city’s water, wastewater, and sewer operating expenses to recommend a financial plan. Their preliminary report aimed to gather feedback from the City Council and emphasized the importance of keeping rates as low as possible while still ensuring high service quality. Drat highlighted that current water rates are slightly below the national average but slightly higher than those in neighboring cities like Fayetteville, Rogers, and Springdale[1].
Why Rates Might Increase
- 1. Previous Recommendations – In 2020, Raftelis recommended a 4% annual increase in water rates from 2021 to 2024. However, this increase was only implemented for 2021. This trend suggests that future rate adjustments are likely to align with these recommendations[1].
- 2. Operating Costs – The city’s infrastructure needs have significantly increased since the last study. With higher operating costs, there is a strong likelihood that rates will increase to cover expenses. This includes addressing issues such as increased non-revenue water loss and needing more effective metering solutions[1].
- 3. Non-Revenue Water – One major concern is non-revenue water, which refers to purchased water not sold due to leaks in the system. The amount of non-revenue water has risen from 42% in 2019 to 56% currently. The industry standard is around 15%, highlighting a pressing need for improvement[1].
Future Plans and Adjustments
Raftelis is working on a financial plan that aims to reduce water leaks to 45% by 2025, 30% by 2026, and further decrease afterwards. This strategy involves fixing over 600 leaks in the current year alone. The long-term goal is to minimize non-revenue water loss while maintaining reliable service[1].
Collin Drat emphasized the importance of making adjustments as soon as possible while addressing both the non-revenue water issue and any metering problems. He indicated that even if initial adjustments seem challenging, future improvements might justify adjustments within a few years[1].
City’s Budget and Financial Decisions
The financial discussions are part of the broader 2025 budget process. The City Council voted unanimously to adopt the 2025 budget, which includes over million in predicted revenue—11.3% more than the 2024 budget. This growth is driven by robust commercial development and rising property values[2].
The budget also includes significant investments in core city services such as salaries (a 3.5% increase across the board), benefits, road infrastructure improvements, public safety fleet upgrades, and enhancements to Parks & Recreation and library facilities[2].
Conclusion and Next Steps
The Bentonville City Council will likely finalize its rate recommendations early in 2025 after receiving feedback from the preliminary report. This discussion underscores the delicate balance between maintaining affordable rates and meeting the growing demands of a rapidly expanding city[1].
