Bentonville leaders weigh emergency water-rate increase as city hunts thousands of leaks

Bentonville — City staff on Tuesday told the Bentonville City Council that a rising gap between water the city purchases and water it bills has created a short-term cash shortfall and prompted proposals for an immediate water-rate increase to keep repair contractors working and preserve the utility’s ability to borrow for larger projects.

Preston, a water department staff member, opened the presentation by tracing the problem to meter and installation issues first identified in 2014 and to a steady rise in ‘‘unaccounted-for’’ water since 2018. He said the utility now buys significantly more water than it records through its meters, and that part of the loss is apparent (meter under-registration) while part is real (leaks in mains and service lines). Colin Dratt, project manager at rate consultant Raftelis, told the council that replacing meters reduced under-registration but that the most significant remaining cost driver is physical loss from leaks.

Why it matters: the city pays the wholesale cost for every gallon it purchases from Beaver Water District, while lost billed gallons represent lost revenue at the full retail rate. Councilmembers and residents said the issue is pressing because day-to-day operations are at risk without immediate revenue and because proposed mid-term investments and borrowing rely on showing a sustainable utility cash flow.

Most important details - Staff described multiple responses undertaken since 2018: AMI meter upgrades, static-pressure testing, third-party meter autopsies (including testing at Utah State), hiring of leak-detection contractors and…