Most Searcy residents will soon notice a small increase in their monthly water and sewer bills after a comprehensive rate study required under Arkansas law determined adjustments are needed to keep the city’s utility system financially strong for future growth.
The proposed rate changes were presented Thursday during the Searcy City Council’s pre-agenda meeting by Searcy Water Utilities Director Scotty Boggs, who said the study was required under Act 605, legislation requiring public water systems across Arkansas to complete certified financial rate studies. The city also completed a similar review for its sewer system under Act 925 at the same time.
State Law Required the Review
Boggs told council members the study examined whether Searcy Water Utilities has adequate revenue to maintain its extensive infrastructure while preparing for future community growth.
Rather than waiting until utility finances become strained, the state now requires utilities to periodically evaluate rates to ensure they remain financially sustainable.
Searcy hired engineering firm Garver to conduct the analysis, with a nationally recognized rate specialist assisting in the certification process.
What Customers Can Expect
Following the study, the Searcy Water Utilities Board adopted modest adjustments to both water and sewer rates.
Water Rates
The study recommended:
A 4.5% increase in water rates.
The increase is in addition to the city’s annual Consumer Price Index (CPI) adjustment, bringing this year’s total water rate adjustment to 7.4%.
Sewer Rates
For sewer customers, officials approved:
A 0.5% increase above the annual CPI adjustment.
Combined with this year’s CPI increase, sewer rates will rise 2.9% overall.
How Much More Will Customers Pay?
Boggs said the actual impact on customers will be relatively small.
The changes include:
Water customer charge increasing about 80 cents
Sewer customer charge increasing about 39 cents
Water usage increasing 18 cents per 1,000 gallons
Sewer usage increasing 13 cents per 1,000 gallons
For a typical household using approximately 5,000 gallons of water each month, the average bill will increase slightly less than $3 per month.
Recognition for Long-Term Planning
While discussing the study’s results, Boggs said the consultant praised Searcy for already having an automatic annual CPI adjustment in place.
According to Boggs, the consultant described Searcy Water Utilities as being in a much stronger financial position than many utilities across Arkansas because city leaders have consistently made gradual annual adjustments instead of waiting for large increases.
Boggs credited the City Council’s long-term planning for helping keep the utility financially healthy.
Preparing for the Future
One of the study’s biggest findings involves the utility’s long-term financial outlook.
Boggs told council members that several major utility bonds are scheduled to be paid off in 2028, significantly improving the utility’s borrowing capacity.
Once that debt is retired, Searcy Water Utilities expects to begin financing major infrastructure improvements identified in its 20-year master plan, which includes upgrades to treatment facilities, water lines, sewer lines and other critical infrastructure needed to support continued population growth.
Maintaining a Large Utility System
Boggs reminded council members of the size and complexity of Searcy’s utility system.
Today, Searcy Water Utilities operates:
Approximately 325 miles of water and sewer lines
2 treatment plants
Numerous lift stations, pump facilities and supporting infrastructure
Officials said maintaining that system requires continued investment to meet state regulations, replace aging infrastructure and ensure reliable service for residents and businesses.
Council Receives Update
Following the presentation, City Council members thanked Boggs and the utility staff for their work and praised the department’s financial planning.
The proposed rates are expected to move forward through the city’s approval process as Searcy continues planning for future infrastructure investments while complying with Arkansas utility regulations.
