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Bentonville officials to consider steep water-rate increases after consultants flag $10.4M shortfall and widespread leaks

2755457 · February 10, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

City consultants and staff told the City Council that Bentonville faces large near-term costs to find and fix water leaks and to fund a $230 million 10-year capital plan; staff were directed to return two rate scenarios and supporting documents within weeks.

Bentonville City Council members spent more than two hours on a deep-dive of the city’s water finances, hearing from outside consultants and city staff that addressing high “non‑revenue” water (lost or unbilled water) and funding a newly updated master plan would require substantial revenue increases.

Consultants from Raftellus and city utility staff told the council that current budgeted revenues leave the utility about $10.4 million short of covering 2025 operating costs plus the additional work needed this year to continue leak‑finding contracts. Staff said an additional $6 million of IDIQ (indefinite delivery/indefinite quantity) work is needed in 2025 to keep contractors identifying and repairing leaks through the remainder of the calendar year; the existing IDIQ funding will cover only a few more weeks.

The…

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