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Little Rock wastewater utility proposes five‑year rate plan beginning Jan. 2026 to fund capital renewal
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Summary
Little Rock Water Reclamation Authority officials proposed a series of five 7.25% annual rate increases beginning in January 2026 to support a 10‑year capital plan focused on asset renewal, regulatory compliance and growth, and to shift more capital funding from debt to cash. Staff asked the board to add the item to next week’s agenda for formal
Jean Block, chief executive officer of Little Rock Water Reclamation Authority, told the board the utility’s mission is to protect public health and the environment by reclaiming used water and maintaining treatment and collection infrastructure.
"We are charged with protecting the public health and environment of the city," Block said, explaining the utility’s scale: three treatment plants, 1,400 miles of collection lines, 33 pump stations and roughly 13 billion gallons treated annually.
Block and the utility’s finance team said an updated financial plan and consultant analysis (Raftelis) show rising construction and O&M costs and a significant 10‑year capital program (roughly $250 million targeted for major asset renewals). Mike Rota, the utility chief financial officer, summarized current spending and said "67¢ out of every dollar goes directly to infrastructure, and 19¢ goes towards the debt service" in the present budget context.
Raftelis presented a funding scenario the utility staff is recommending: five annual increases of 7.25% starting January 2026, with the series concluding in January 2030. The consultant said the increase would help fund a higher share of capital projects with cash (reducing reliance on debt) while preserving the utility’s bond rating.
Board members asked detailed questions about alternatives and the path used to refine higher initial consultant estimates. Block and consultants said staff and commissioners worked over several weeks to adjust timing and the mix of cash vs. debt funding, and to avoid an approach that would "overcharge" customers early to achieve a later pause in rate increases.
Staff outlined customer impacts: the majority of residential customers (roughly two‑thirds) would see annual bill increases of under $3 per month in early years; heavier users and many commercial accounts would see larger increases. Block described community outreach — seven public meetings, letters to business customers and meetings with industrial users — and said the Little Rock Chamber’s economic development staff supports the proposal as necessary to increase capacity (particularly at the port served by the Fish Creek plant).
The utility requested the board place the rate adjustment on the next regular board meeting agenda for formal consideration; no vote was taken at the agenda‑setting meeting.
Ending: Staff will be added to the board agenda for formal consideration of the proposed rate schedule; board members and staff indicated they will continue technical review and public outreach prior to a formal vote.
