|
Water Rates - Frequently Asked Questions
Thank you to all residents who attended the water rates community input sessions and completed the water rates survey. We received many questions at the input sessions. Please take a look at these three most-asked questions and our responses.
Frequently Asked Questions
Why is a water rate increase being proposed?
- The proposed water rate increase for 2024 would cover both operating and maintenance costs. It would also provide sufficient funds to pay our existing debt and meet the required debt coverage to comply with bond agreements (covenants).
- Water rate increases would help build the necessary infrastructure to supply water to our growing city.
- To build a 48-inch water transmission line from Lake Fort Smith to the City of Fort Smith.
- To rehabilitate and expand the Lake Fort Smith water treatment plant.
- To paint water tanks and towers.
- To upgrade water meters so account holders can see and receive real-time water use.
Why can't we take money from another fund (like the money spent on the ACME brick park) and put it toward water utilities?
- Water Utilities operates with an enterprise fund, meaning it is budgeted more like a business. The revenue for an enterprise fund primarily comes from user fees, such as your monthly utilities bill, rather than from tax dollars. This design ensures that an enterprise fund is self-sustaining.
- The majority of big projects (what we call Capital Improvement Projects) are paid for with sales tax revenue. The use of that money was decided upon by voters, so we cannot use it to fund things outside of what it was intended for. For example, 1% (or 1 cent) of the current sales tax goes to streets, bridges, and drainage. That money cannot be used to fund the new Creekmore Bathhouse, for example. It can, however, be used to resurface a street or build a retention pond.
This page does a good job breaking down the current sales tax and how it is allocated in Fort Smith: https://www.fortsmithar.gov/government/municipal-code-laws-taxes/taxes
How much will my bill increase if the rates change?
- This all depends on how much water you use. Fort Smith measures usage in CCFs rather than gallons (Centum Cubic Feet, or 100 Cubic Feet). 1CCF = 748.052 Gallons.
- Those who use more water each month will see a larger increase than users who use less. The biggest increases will be to commercial users who use substantially more water than the average household.
- 80% of households in Fort Smith use 7CCF or less
- 60% of households in Fort Smith use 5CCF or less.
- The webpage linked below outlines the proposed increases based on monthly CCF usage.
Please see the proposed water rate increases here.
|
|
|
|
