Residents and business owners in Alma will see higher utility bills this spring following the City Council’s official approval of a water and sewer rate hike during their January 2026 session. The decision, while difficult, was presented as a necessary step to combat a "perfect storm" of rising operational costs and strict new state financial requirements.

The "New Math" of Clean Water

The primary driver for the increase is a dramatic spike in the cost of treatment chemicals. Prices for essential materials like chlorine and polymers—critical for making water safe to drink—have surged between 30% and 50% over the last year. Under new state laws, cities are increasingly restricted from "absorbing" these costs, requiring them to be passed directly through to the consumer to ensure the utility remains solvent.

State Mandates: The Clock is Ticking

The timing of Alma's decision is tied to the July 1, 2026 compliance deadline for Arkansas Act 605. This law mandates that all large water systems prove they are "fiscally self-sustaining."

  • No More Subsidies: Historically, cities could use surplus water funds to fix failing sewers. Act 605 and the newer Act 925 essentially ban this, forcing each utility to stand on its own financially.

  • Fiscal Distress Risks: Failure to meet these state standards could result in a city being labeled in "Fiscal Distress," which allows the state to take over utility management and potentially withhold funding for local roads and police.

A Regional Snapshot

Alma is far from alone in this transition. Across the River Valley, municipal leaders are adjusting rates to avoid the "crisis scenario" currently facing Fort Smith, where a federal consent decree has led to hundreds of millions in mandated repairs.

City

Latest Action

Strategy

Alma

Approved Jan 2026

Covering chemical spikes and Manganese plant debt.

Fort Smith

3.5% Annual Hike

Part of a multi-year plan through 2030 to satisfy federal mandates.

Van Buren

CPI Adjustments

Annual inflation-tied increases capped at 4% to maintain compliance.

Infrastructure Health vs. Monthly Bills

While the immediate impact on household budgets is real, city officials emphasized that these funds are being put to work. In Alma, the revenue supports the new Manganese Removal Facility, a project designed to eliminate the "brown water" issues that have plagued the local system for years.

"It's about maintenance versus crisis," noted one regional official. "You can pay a small amount now for an oil change, or wait for the engine to blow up and face a $600 million bill like we've seen in other parts of the state".

Frequently Asked Questions

Q: When will I see the new rates on my bill?

A: Typically, new rates take effect 30–60 days after council approval. For Alma, residents should anticipate seeing the first adjusted statements in their March or April 2026 billing cycles.

Q: Why couldn't the city just use surplus money to avoid a hike?

A: Under Arkansas Acts 605 and 925, it is now illegal for cities to "borrow" from water funds to cover sewer shortfalls. Each utility must stand on its own financially, meaning a deficit in one area must be corrected by a rate adjustment in that area.

Q: Is there any assistance for low-income households?

A: Yes. Many regional cities, including those in the River Valley, participate in the Low-Income Household Water Assistance Program (LIHWAP). Additionally, programs like Project Concern in neighboring Fort Smith offer up to a 50% discount on sewer bills for qualifying residents; Alma residents are encouraged to contact City Hall at (479) 632-2254 to discuss local assistance options.

Q: How do these rates compare to other cities?

A: Regional utility costs are rising across the board. While Fort Smith implemented a 3.5% annual sewer hike in January, other towns like Centerton recently approved base rate increases of $0.50 for sewer and $1.45 per thousand gallons for water to manage rapid growth.

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