Maumelle Water Management's Board of Commissioners will discuss a proposed consolidation with Central Arkansas Water during a special meeting today.
Central Arkansas Water's Board of Commissioners approved the proposal Sept. 10, pending the Maumelle utility's decision. The Maumelle meeting, at 4:30 p.m. today at the utility's training room, 418 Hyman Drive, is open to the public.
Maumelle's three-member water board will have the option to approve or reject the proposal or may delay a decision to obtain more information. A vote by the Maumelle City Council isn't necessary for the proposal to go forward, city officials have said.
If the current proposal is approved by Maumelle's water commissioners, Central Arkansas Water would assume management and ownership of the Maumelle water operations March 1. A transition period would then exist for about 30 months to complete a transmission line to Maumelle.
Maumelle's current water rates would continue for at least two years before the Little Rock-based utility's rates would take effect, Central Arkansas Water Chief Legal Counsel Tad Bohannon said.
Under the proposal, the water utility that already covers much of Pulaski County would assume responsibility only as Maumelle's water provider. Maumelle Water Management could continue to provide wastewater treatment or seek other options.
The metropolitan utility also requested that North Little Rock Wastewater study providing wastewater treatment for Maumelle, but Maumelle's commissioners haven't yet made a decision on that option.
To assume Maumelle Water Management's debt of $8 million, Central Arkansas Water would charge Maumelle water customers a $19.21 monthly fee per meter on their bills for two years beginning March 1, with a separate surcharge for sewer services estimated to be $6.03 monthly, according to a financial model used for the proposal.
A current debt service fee charged by Maumelle Water of $8.25 would no longer be charged, resulting in a net surcharge of $16.99 monthly per meter.
A rate increase for Maumelle Water Management customers of 9 percent each for water and sewer services took effect this month and will first appear on October bills. The debt service fee was also raised from $7.86 to $8.25 monthly. Charges for sprinkler meters increased by 15 percent at the same time.
Maumelle has about 10,500 metered water customers. Central Arkansas Water has about 125,000 metered customers in Pulaski, Saline and Grant counties with its main customer base in Little Rock and North Little Rock.
Metro on 09/22/2015