Panel approves 4% raise for CEO of water utility

Central Arkansas Water’s chief executive officer will get a 4 percent raise after a year on the job.

The agency’s commission voted to approve a salary increase for Tad Bohannon on Wednesday. He was hired in January 2016 when former CEO Graham Rich resigned to take a new job in South Carolina.

Bohannon has been paid $ 185,000. That will increase to $ 192,000 with the raise.

Rich’s salary was $ 198,286 when he left the post after 8 ½ years.

“I believe 2016, my first year as CEO, was an incredibly productive and great year for Central Arkansas Water. Of course, the consolidation with Maumelle Water management was a major task and it required a lot of our attention this year. That consolidation is progressing nicely and the construction project should be completed in a timely manner by March of 2018,” Bohannon said in a statement outlining his accomplishments.

He said the utility will continue to look for ways to increase its customer base and lower rates for all customers by spreading the cost to operate.

“Despite the fact that 2016 was a very wet year, resulting in lower than anticipated water sales revenues, Central Arkansas Water remains

financially strong with a positive net income for the year,” he said.

Before becoming CEO, Bohannon served as the water utility’s in- house, full- time legal counsel for about two years. He made $ 170,000 in that role. He had previously been contracted as the utility’s outside attorney for about 20 years through the Wright, Lindsey and Jennings law firm.

Bohannon received good reviews from commissioners Wednesday.

“He has delivered on all of the expectations that we had over the last year and done an excellent job in his first year

of service as our CEO,” Chairman Tony Kendall said. “Notable achievements include the Maumelle transition and the work with the Corps of Engineers on the Lake DeGray project.”

Bohannon is now the fourth- highest- paid public official in Little Rock. Bill and Hillary Clinton National Airport/ Adams Field Chief Executive Officer Ron Mathieu is the highest paid, with a $ 222,400 salary after a raise this week, plus a $ 45,000 bonus and a $ 11,000 contribution to his retirement accounts.

Little Rock Wastewater CEO Greg Ramon is the secondhighest paid at $ 203,049, followed by Central Arkansas Water Chief Operating Officer Thad Luther with a $ 192,171 salary.

After Bohannon, Little Rock City Manager Bruce Moore is the fifth- highest- paid public official with a $ 189,240 salary after a recent raise.

Bohannon was the sole person to interview for the CEO job when Rich left the utility. Commissioners didn’t advertise for the opening or accept other applications. They hosted a 90- minute open interview with Bohannon before selecting him as the new leader.

Then- Chairman Roby Robertson said at the time that the commission’s confidence in Bohannon was based on his time as legal counsel for the utility.

“Tad has been a consistent voice of reason, passion and innovation for this utility,” Robertson said at the time.

“He has the skills and enthusiasm needed to preserve the quality and affordability of our water, improve customer service and continue an ambitious multiyear program to improve aging infrastructure.”

Some residents present for last year’s interview had concerns that Bohannon didn’t have the same engineering background as past utility leaders. Robertson said that nationwide there had been a shift toward more businessminded leaders at the helm of public utilities.

Central Arkansas Water serves about 400,000 people in the region and bills about 120,000 customers each month. The utility was created as a merger between the Little Rock and North Little Rock water utilities in 2001.