The Searcy City Council has officially approved modest increases to water and sewer rates following a comprehensive utility rate study required under Arkansas law.
The approved adjustments are designed to ensure Searcy Water Utilities remains financially strong while maintaining existing infrastructure, meeting state regulations, and preparing for future growth throughout the community.
State Law Required the Study
The rate study was presented by Searcy Water Utilities Director Scotty Boggs, who explained the review was required under Act 605, which mandates certified financial rate studies for public water systems across Arkansas. At the same time, the city completed a sewer system study required under Act 925.
Boggs told city leaders the purpose of the study was to determine whether current utility revenues are sufficient to maintain Searcy’s extensive water and sewer system while preparing for long-term infrastructure improvements.
Engineering firm Garver completed the study with assistance from a nationally recognized certified rate specialist.
Approved Water Rate Changes
Following the study, city leaders approved:
4.5% increase in water rates
Combined with the city’s annual Consumer Price Index (CPI) adjustment, the total water rate increase for 2026 will be 7.4%
Approved Sewer Rate Changes
Officials also approved:
0.5% increase above the annual CPI adjustment
Combined with CPI, sewer rates will increase 2.9% overall
What Customers Will Pay
Boggs said the impact on most customers will be modest.
Approved adjustments include:
Water customer charge increases about 80 cents
Sewer customer charge increases about 39 cents
Water usage increases 18 cents per 1,000 gallons
Sewer usage increases 13 cents per 1,000 gallons
Officials estimate a typical household using approximately 5,000 gallons each month will see its monthly utility bill increase by less than $3.
Long-Term Planning Pays Off
During the presentation, Boggs said the consultant praised Searcy Water Utilities for already having automatic annual CPI adjustments built into its rate structure.
According to Boggs, the consultant noted Searcy is in a much stronger financial position than many Arkansas utilities because city leaders have consistently made gradual adjustments over time instead of waiting until large increases became necessary.
Boggs credited the City Council’s long-term planning for helping maintain the utility’s financial stability.
Preparing for Major Infrastructure Projects
One of the study’s biggest findings focused on the utility’s future financial outlook.
Boggs said several major utility bonds are scheduled to be paid off in 2028, significantly increasing the utility’s borrowing capacity.
Once that debt is retired, Searcy Water Utilities plans to move forward with major infrastructure projects identified in its 20-year master plan, including improvements to:
Water treatment facilities
Sewer treatment facilities
Water mains
Sewer lines
Lift stations
Pump stations
Other critical infrastructure needed to support continued residential and commercial growth.
Maintaining a Growing Utility System
Boggs reminded council members that Searcy Water Utilities currently operates:
Approximately 325 miles of water and sewer lines
2 treatment plants
Numerous lift stations, pump stations, and supporting infrastructure
Officials said continued investment is necessary to replace aging infrastructure, comply with state regulations, and provide reliable service to residents and businesses.
City Council Gives Final Approval
Following discussion, the Searcy City Council approved the new rate adjustments.
City leaders thanked Boggs and utility employees for their long-term financial planning and said the approved rates will help position Searcy for continued growth while maintaining one of the region’s strongest municipal utility systems.
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