The State of Arkansas requires public water systems to maintain user rates adequate to 1) meet current debt service obligations; 2) provide an adequate capital repair and replacement reserve; and 3) provide for the efficient operation and maintenance of the system.
In 2021, Arkansas passed Act 605 which requires water providers to have a rate study every five years and requires board members to receive board training using a curriculum approved by the Arkansas Department of Agriculture, Natural Resources Division.
The City of Elkins requested the assistance of Communities Unlimited, Inc. with an analysis of current revenues and expenses and in addressing the adequacy of customer water rates. The study was funded through a technical assistance grant through the US Department of Health and Human Services and provided at no cost to the city.
The rate analysis examined system financial, billing and usage records from 2019-2021, and budgeted revenue and expense for 2022.