City Director Lance Hines has sponsored a resolution that opposes the planned 10-year rate increase that Central Arkansas Water has prepared. The Little Rock Board of Directors will have a chance to discuss the resolution at its meeting Tuesday, though the vote will occur on Feb. 21.
Central Arkansas Water presented its rate increase plan to the board in January. Utility officials said that the increase would be expected to cover $685 million in capital improvements including rehabilitation to water treatment plants and replacement pipes. A fixed infrastructure charge will also be tacked on to bills.
A typical household’s bill would more than double in the next 10 years, according to a rate forecast from CAW.
“The way they’re doing it, to me, is not right,” Hines said.
If approved, Hines’ resolution would show the city’s opposition to the increase. Both Little Rock and North Little Rock would have to oppose the utility increase within 90 days of the water commission’s vote — that was Jan. 12 — for it to be stopped. Hines said Tuesday that he has not talked with North Little Rock officials about their support or opposition.
Hines said that he is supportive of a rate increase in general, but questions the methodology CAW is using to determine the cost of improvements. He said that he wonders if the utility is including its full wishlist of improvements in the plan, rather than prioritizing its needs.
The first rate increase is expected to happen July 1, 2023, and then at the start of each new year after that until 2032.
