As Van Buren residents received their first utility bills of the new year, they likely noticed adjustments to their water, sewer, and sanitation charges. Effective January 1, 2026, the City of Van Buren Municipal Utilities implemented scheduled rate changes.
While no one enjoys a higher bill, these adjustments are not arbitrary. They are the result of state mandates, rising infrastructure costs, and a strategic shift in how the city manages utility funding to ensure long-term reliability.
Here is a breakdown of why rates are changing, how the new system works, and what the numbers look like for the average household.
The "Why": State Mandates and Aging Infrastructure
The primary drivers for these rate increases go beyond standard inflation. They are rooted in regulatory compliance and the physical reality of aging water systems.
Arkansas Act 605 Compliance: Passed in 2021, this state law requires all retail water providers to conduct rigorous "cost of service" studies. The goal is to ensure utilities are charging enough not just to operate today, but to fund necessary future maintenance and replacements. The state is effectively mandating that cities stop deferring maintenance and ensure their systems are financially sustainable.
Rising Material Costs: The cost of the physical components needed to run a utility—pipes, pumps, treatment chemicals, and contracted labor—has risen significantly in recent years.
Preventing Failures: Increased revenue is targeted toward replacing aging water and sewer mains to prevent service outages and meet Arkansas Department of Environmental Quality standards regarding sewer overflows.
The "How": The Annual Adjustment Mechanism
Historically, many cities wait years to raise rates, resulting in sudden, massive price hikes that shock residents. Van Buren has adopted a different approach aimed at smaller, more predictable increases.
Tied to Inflation: The city ordinance now ties utility rates to an external benchmark: the U.S. Consumer Price Index for Water, Sewer, and Trash (CPI-WST). This ensures rates keep pace with the actual cost of providing the service.
The 4% Safety Cap: Crucially, the city ordinance includes a protective cap. Regardless of how high inflation might spike in a given year, the annual rate adjustment for residents is capped at a maximum of 4%.
Commission Discretion: The Utility Commission retains the authority to set the increase lower than the CPI index if they determine a lower rate is sufficient, providing a layer of local control over the final figures.
The Data: Breakdown of 2026 Rates
Understanding a utility bill requires looking at its individual components: base charges (the fixed cost to be connected) and volume charges (based on usage).
Based on the new rate structure effective January 1, 2026, here are the key data points regarding residential service costs inside city limits:
Key Rate Components:
Water Base Charge (Standard Meter): $6.80 per month.
Sewer Base Charge (Standard Meter): $3.63 per month.
Sewer Volume Rate: $7.11 per 1,000 gallons used.
Residential Sanitation (Trash): approximately $17.94 per month (based on rates set in 2025).
The "Average House" Perspective: City officials often frame the total cost of utility services in daily terms to provide context. For an average household using approximately 4,000 gallons a month, the combined cost for essential services—clean drinking water, reliable sewer infrastructure, and weekly trash pickup—averages out to roughly $3.03 per day.
While the adjustments affect monthly budgets, city leadership emphasizes that this funding model is essential to avoid the catastrophic infrastructure failures seen in other parts of the country and to ensure Van Buren can support continued growth.
FAQ: Van Buren Municipal Utilities 2026 Adjustments
How can I pay my updated bill?
Residents have several options: pay online at www.vbmu.org, pay by telephone at 1-877-885-7968, or pay in person at 2806 Bryan Road. You can also set up an automatic bank draft for a worry-free monthly payment.
Are there fees for paying online?
Yes, the third-party payment service (PSN) typically charges a processing fee for using a debit card, credit card, or e-check.
Who should I contact for billing questions or service issues?
For all customer service inquiries or to report water and sewer problems, call 479-474-5067. This line is available 24/7 for reporting emergencies like main breaks or sewer backups.
Is financial assistance available for low-income residents?
Yes. Households facing a financial burden may qualify for the Low-Income Household Water Assistance Program (LIHWAP), which helps with current or past-due water and wastewater bills. You can also contact the Crawford-Se