Fort Smith Board discusses water rate freeze, reduction for senior citizens

The Fort Smith Board of Directors on Tuesday (April 14) decided to further study options to would reduce or freeze water rates for those 65 or older. Board members talked favorably about the concept, but seek more details on process, cost, and the range of options.

Directors George Catsavis and André Good requested the idea be discussed at Tuesday’s board study session.

“The purpose of the discussion is to determine if it makes sense to establish such a program,” Acting City Administrator Jeff Dingman noted in a memo to the board. “Peer cities such as Springdale and Rogers are enacting rate freezes for customers who are 65 and 62, respectively. The rate freeze is applicable to bills associated with the primary residence and only for the first 1,000 gallons in Springdale and 1,500 gallons in Rogers.”

Catsavis suggested not charging the first ccf – 748 gallons – used by those 65 or older. Good said the goal is to help senior citizens, but to do it in a way that doesn’t significantly reduce revenue or cause other residents to pay more.

“I think that helping out our senior citizens is a fantastic idea,” Good said. “Our senior citizens for the most part, particularly the ones I know on the north side of town, are the users that use the least amount of water. The amount of impact of savings might be minimal, but to them it might be substantial.”

An initial estimate by the city indicates there may be 5,860 accounts – based solely on U.S. Census data – that would qualify for a water rate reduction or freeze. A rate freeze on 1 ccf – roughly 748 gallons – per month could reduce city water revenue by $213,774 a year. A rate freeze on 3 ccf per month could reduce revenue by $485,912 per year.

The city in 2025 reported $38.403 million in revenue from water service charges and fees, with expenditures on the system totaling $36.225 million. The city in recent decades has struggled to find funds for upgrades and new infrastructure needed for an aging system. City engineers have said the water system often operates in a “crisis mode” because of the aging infrastructure.

Maggie Rice, deputy city administrator, said the 5,860 account estimate is solely based on Census data and may not represent the number of accounts that would qualify. She said some who are 65 or older may live in facilities or spaces where they do not have a water bill, or may live with a family member who pays the water bill. She said the city would have to do a more detailed study to determine how many people might qualify.

The board will again look at the issue during the first study session in June. Rice said city staff will work to outline the options discussed, and develop a better tally of how many residents might be eligible.

“It sounds like what I heard tonight is that board is interested in only looking at the water portion of the utility bill,” Rice said. “And so, we can look at freezing just that portion alone, or also just offering a 10% discount.”