Centerton adopts water-rate increase tied to wholesaler costs; council schedules February billing

The Centerton City Council voted to adopt Ordinance 2024‑33, approving a water-rate adjustment that combines a passthrough increase for wholesale water charges and an additional operating-cost increase, to take effect with the February billing cycle.

Supporters and city staff said the increase is partly a direct passthrough of higher charges from the Benton Washington Regional Water Authority and partly to cover rising local operating costs. “We were actually able this year to hit our budgeted goal of 500,000,” Finance Director Shannon said during the meeting, citing improved revenue collection and growth in ambulance collection that helped overall finances.

Why it matters: The vote follows several months of discussion about Centerton’s high system water loss and a push to increase funding for ongoing leak detection, service-line replacement and a future rate study. The council and water staff said the new revenue will support repairs and operations while a full rate study is scheduled this year to recommend longer-term rates.

Council discussion and public comment focused on leakage and service‑line replacement. Red, a city utility crew supervisor, told the council that the city’s leaking service lines include prematurely failing materials in subdivisions built around 2004–2007 and that replacing those lines can temporarily increase leaks elsewhere as pressure balances shift. “When you fix a leak, it puts pressure on another part of the system,” Red said. He described the work as mostly excavation and utility coordination; crews replaced 96 service lines last year, he said.

Water department staff and commissioners answered questions about whether Centerton had a rate study behind the proposed increases. Staff said the current proposed increase was based on projected future budget needs rather than an updated external rate study; a full rate study is planned for 2025 with a contract expected to be placed in March or April. Staff said 25¢ of the proposed one-dollar‑per‑1,000‑gallons increase is the wholesaler passthrough and about 20¢ is for operating cost increases.

Several residents urged the council to consider alternatives and asked for clarity on how new development affects operating costs. A resident referenced neighboring cities’ recent large rate moves and asked whether Centerton was behind on maintenance; staff said Centerton has been increasing targeted spending and adding crews and contractors where possible but that capital and service-line replacement remains expensive.

The council approved the ordinance after a motion to adopt Ordinance 2024‑33 effective with the February billing cycle. The roll call recorded all present council members voting in favor.

What’s next: City staff said the commission will pursue a formal rate study this year and return with recommendations for future increases; staff also said they will continue to report on leakage and the results of the contractor work and service-line replacements.

Note on timing and scope: The ordinance applies only to water rates; staff said any sewer-rate changes would require a separate ordinance and state‑required public hearing.

Ending: The council’s action sets a near-term revenue path while the city prepares the formal rate study that could recommend further changes next year.