Water and sewer rates may be going up for Arkadelphia residents and consumers of Arkadelphia water, the water and sewer committee decided Tuesday. The committee’s decision will be presented to the Arkadelphia City Board of Directors for its approval at a later date.

Stewart Noland, vice president of Crist Engineers, performed a rate study for water and sewer usage for the next five years in the city and the water department’s customers in surrounding communities.

The study came after, between 2002 and 2007, the water department went from having a $253,473 surplus to a $271,124 deficit. Revenue the department has received over a five year period has remain the same while expenditures have steadily increased, according to a report from the water department. Between 2002 and 2007, the water department received about $1.25 million annually. Expenditures, however, climbed from $1.1 million to over $1.45 million in five years. The same flat-line — revenue vs. climbing expenditures — applied to the sewer department.

Noland presented the committee with three options for both water and sewer rates. Two options included initial increases for the first year, followed by smaller annual increases. The option the committee chose calls for a smaller initial increase for the first year, followed by moderate annual increases over the next four years.

The water department currently has lower rates than 97 percent of other towns in the state, Dorinda Suitor, utilities manager, said.

After voting on Case No. 2 of the rate study, the city will have lower rates than 89 percent of other towns in the state, Noland told the committee. The initial increase for the first year, which should be in place by July 2009, will be a 48.8 percent jump from the current rate, followed by an additional 3.9 percent increase for the following four years. A minimum usage bill (between 0-2,000 gallons used) will go from $5.39 to $8.02, and eventually to $9.34 after five years.

The sewer department currently has lower rates than 68 percent of other towns in the state. After voting on Case No. 2 of the rate study, the city will have lower rates than 34 percent of other towns in the state, Noland said.

The initial increase for the first year will be a 37.3 percent jump from the current rate, followed by an additional 1.6 percent increase for the following four years. A minimum usage bill will go from $7.44 to $10.22, and on up to $10.91 after five years.

Before voting on the matter, committee members discussed their thoughts. “Normally, I’d prefer a one-time hit,” Jim Ford said of voting on one of the other options, which called for a one-time 73 and 46 percent increase for water and sewer, respectively. “But with the hit that’s going on worldwide right now, I don’t know if it would be appropriate.”

Bryan McDonnell echoed Ford’s comment, saying, “I like the idea of smaller increases.” Karen Wieman said that voting on moderate increases, the committee would receive “less repercussion from the community.”

City directors Don Hager and James Calhoun were also in attendance. “None of us want an increase,” Hager said. “The key is educating the public. They won’t like (an increase), but they’ll understand. Something has got to change.” Calhoun said, “Increments would be much better.” He said the last time the city saw a rate increase, “it was almost too late” and called for a 110 percent increase for sewer rates.

Noland based his study on the area witnessing no economic or industrial growth. Most projects in the department’s master plan were also booted to keep rates lower. Suitor said there is room for the department to expand if growth comes. She said it is important to keep rates lower for these economic times. But if the county sees industries locating here and more people living here, the need for more water production, large projects and higher rates could resurface.