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Fort Smith, Arkoma continue negotiations over wholesale wastewater rate; board asks administration for options within 21 days
Summary
City staff presented cost analyses for a proposed wholesale wastewater rate for Arkoma; the town—s leaders said they could not pay fully allocated costs and the board directed administration to continue negotiations and return with proposal(s) within 21 days.
City staff and Arkoma officials continued a multiweek discussion about a wholesale wastewater agreement and potential rate changes after staff presented systemwide cost calculations and several rate scenarios.
Andy Richards, Fort Smith chief financial officer, presented a cost-based analysis intended to identify the incremental cost to the city of treating wastewater Arkoma sends to Fort Smith—s P Street plant. Richards calculated systemwide sewer operating costs, depreciation and allocations and produced per-unit cost estimates under different infiltration-and-inflow (I&I) assumptions. Using the administration—s system cost figures for the 2024 fiscal year, one staff calculation placed a fully allocated treatment cost at about $3.36 per CCF at the…
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