LR vote on water rate resolution delayed again

A vote of the Little Rock Board of Directors on a resolution that would express the city’s opposition to a schedule of water rate hikes was delayed again Tuesday.

The measure’s sponsor, Ward 5 City Director Lance Hines, asked for the delay during the city board meeting, explaining that he was still in talks with the water utility’s chief executive officer.

Hines said they had encountered scheduling issues and asked that the resolution be delayed until the first week of April.

Consideration of the resolution was previously delayed for two weeks at a Feb. 21 city board meeting at Hines’ request.

On Jan. 12, Central Arkansas Water’s board of commissioners unanimously approved a resolution setting a 10-year schedule of increases.

The city councils of Little Rock and North Little Rock would have to vote against the rate increases to block them from taking effect because the two cities formed Central Arkansas Water in 2001.

The North Little Rock City Council has yet to take up a measure on the subject.

The water utility’s board is made up of four Little Rock representatives and three North Little Rock representatives who serve seven-year terms.

According to the rate schedule, customers will face higher prices for water every year that are expected to eventually take the cost of water from half a penny per gallon today to one penny per gallon by 2032.

The first set of higher rates is scheduled to take effect July 1, and subsequent rate increases will take effect on Jan. 1 of each year.

Central Arkansas Water officials believe a doubling of revenue is necessary to pay for hundreds of millions of dollars in capital improvements, plus staff salaries. They arrived at the rate schedule last year with the help of Raftelis, a consulting firm.

Among other changes, a new infrastructure fee will support work on three major projects: Improvements to the Jack H. Wilson Water Treatment Plant, work at the source-water reservoir of Lake Maumelle and construction of a 60-inch water pipeline.

The water utility’s board already has approved a preliminary measure to issue up to $11 million in revenue bonds in the near future to fund upgrades at the Wilson treatment plant.