Beaver Water District Defers Rate Increase

The Beaver Water District board members have decided to defer a planned 2-cent rate increase for 2010 due to the global economic downturn.

The board approved a long-range financial plan in 2007 that called for an increase of 2 cents per 1,000 gallons for every year from 2008 to 2011 and a 3-cent increase in 2012.

According to CEO Alan D. Fortenberry, Beaver Water District staff developed the long-range financial plan in an effort to avoid large rate increases in any one year while providing funds to ensure the district has the capacity to meet future demands of its customer cities, which include Fayetteville, Springdale, Rogers, Bentonville and surrounding cities.

Fortenberry said the plan called for the board to revisit and approve the increase each year. Management suggested that the increase be put on hold for 2010, he said.

“Our intent with the original five-year plan of increases was to minimize the impact while also bearing in mind the increased costs the District would be incurring with rising chemical costs and capital improvement needs,” said David Short, president of the board. “But right now, it’s important that all of us tighten our belts and look for ways to economize. We’re doing that at the district and the cities are doing it too. It’s a team effort to keep the water flowing and do so at a price that everyone can afford.”

Rates will be held at the $1.20 per 1,000 gallons rate that was approved for 2009.