ORDINANCE NO 58 OF 2022 AN ORDINANCE ESTABLISHING NEW WASTEWATER RATES FOR THE USERS OF THE CITY OF BENTON AND REPEALING ORDINANCE NO, 83 OF 2016, ORDINANCE NO. 25 OF 2016 AND ORDINANCE 70 OF 2021; AND FOR OTHER PURPOSES WHEREAS, the City of Bonton, Arkansas, owns and operates the City electric, water and sewer utility systems; and WHEREAS, tho Bonton Utilities Commission caused a 2022 Cost of Service Study to be porformed and a report from that study has been received and reviewed; and WHEREAS, based upon that 2022 Cost of Service Study, it has been determined that the current utility rates aro not sufficiont to cover the Utility’s costs of operation and maintenance, costs of needed infrastructure improvements, debt service, and to maintain appropriate resorves; and WHEREAS, the rates structure set forth herein are reasonable and necessary for the continued operations of the Utility for the reasons set forth herein; and WHEREAS, the prior rate structures for the City were established in previous ordinances which now must be repealed. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BENTON, ARKANSAS: SECTION 1 Pursuant to Ordinance No. 46 of 2004 and Arkansas Code, the City Council of the City of Benton, Arkansas, has the authority to set rates for the Utility. SECTION 2: ‘The rates to be charged by Benton Utilities to its wastewater customers shall be as follows: Meter Size Os/01/28 = OVOU24 «= OV01/25 1/0 1/26-Forward. 5/8" & 3/4" (65/SSD) $9.20 $10.03 $10.53 1% + CPL 5/8" & 3/4" $11.08 $12.08 $12.68 1% + CPL v $11.08 $12.08 $12.68 1% + CPI Leva" $22.56 $24.59 $25.82 1% + CPI Ly" $25.30 $27.58 $28.96 1% + CPL a" $30.76 $35.20 1% + CPL 3" $41.70 $47.73 1% + CPI a $52.63 $6 1% + CPL o $74.50 $81.21 $85.27 1% + CPL Gallons included in base charge 1000 1000 1000 1000 Cost per 1,000 gal Over minimum $6.18 $6.73 $7.07 1% + CPISewer usage rates shall be calculated based on average monthly wator consumption during the preceding months of October, Novembor, Decomber, January, February, and March. Reealoulation shall be performed in April of each year. Now customers with no prior usage history shall pay the base rate listed above until such time as usage history is established, Commercial and Industrial customers shall be billed on actual water consumption. In the case of customers obtaining water on a metered basis from sources other than. the waterworks system serving the City, there shall be determined the amount of water obtained by such customers from other sources and the amount so determined shall be used (together with the amount reflocted by the waterworks system records if such customer also obtains water from the waterworks ayatom of the City) in making said computation, In case of customers obtaining water not on a metered basis, the Utility shall establish water consumption based on 2 comparison of the non-metered user with a metered user of similar class, Example: a non-motered family of four will be compared to a typical family of four with a water moter to establish water consumption. All wastewater users shall be classified by the Utility as residential, commercial, or industrial. (1) A “residential” user is defined a8 2 user whose wastewator is from residential oceupaney. (2) A “commercial” user is dofined as a user whose liquid wastewater results from commercial operations, trade, or business. (8) An “industrial” user is defined as a user whose liquid wastewater results from industrial, manufacturing, or processing, (a) Excessive Strength Charges: For any user, when the Biochemical Oxygen Demand (BOD) exceeds *200 mg/l, the suspended solids exceed 200 mg/l, or when other pollutant concentrations exceed the range of concentrations of those pollutants in normal domestic sewage, a surcharge shall be added to the basic charge, This surcharge shall be calculated by the following formula: ©, = Be(B) + Se(S) + Pe(P)Vu C, A surcharge for wastewaters of excessive strength Be Operation and maintenance (‘O&M”) cost for treatment of a unit of biochemical oxygen demand (“BOD”) B_ Concentration of BOD from a user above a base level Se O&M cost for treatment of a unit of suspondod solids (‘SS”) S Concentration of SS from a usor above a base lovel Pe O&M cost for treatment of a unit of any pollutant P Concentration of any pollutant from a user above a base level Vu Volume contribution from a user per unit of time*Maximum limit for average domestic wastewater, (b) Charges for Extraneous Flows: The costs of O&M for all flows not directly attribui to users (such as Infiltration/Inflow) shall be distributed among users on the same basis as operations and maintenance charges. (©) Toxic Pollutants Charges: Each user that discharges any toxic pollutants which cause an increase in the cost of managing the effluent or the sludge of the Syatem’s treatment works shall pay for such increased costs. (@ All active users of the System shall be charged a service availability charge (base charge) which shall be used for operations, maintenance, replacement, retirement of debt, and other approved needs to provide safe, reliable, and affordable wastewater services, SECTION For 2026 and each year thereafter, in an effort to ensure that wastewater rates account for inflation, rates will be increased by the amount of annual inflation calculated using the all-items consumer price index for the preceding 12-months ending in October plus One (1%) poreent (CPI+1%). In November, the new rate shall be announced to customors through their monthly billing statement and shall be presented to the City Council for informational purposes only. SECTION 4 For all utility services received (water, wastewater, and /or electric) users of the System will be billed on a monthly basis with payment due upon receipt but not later than the date as stated on the bill. Users on metered water service will be billed on the same notice as water charges and will be designated as a separate ontry. Users not ‘on metered water service will be billed monthly on an individual notice for service based upon the water consumption established by the Utility. Users with delinquent accounts of 10 days will be notified in writing by the Utility where, during which hours of the day, and before whom disputed bills appropriately may be considered. If the user waives the opportunity to be heard and the bill is not paid within 30 days after the date of the billing, the water and/or wastewater service will be disconnected until such bill is paid. SECTION 5: ‘That a financial management eystem shall be established and maintained by the Utility to document compliance with federal regulations pertaining to the, City’s public utility revenue bonds which are owned by the Arkansas Development Finance Authority. Such system will account for all revenues generated and expenditures for OM&R. SECTION ‘That the City Council hereby expressly approves annual increases as indicated in Section 2 above.SECTION If any of the provisions of this Ordinance or tho application thereof to any person or circumstance is held invalid, such invalidity shall not affect the other provisions or applications of this Ordinance which ean be given effect without the invalid provision or application and to this end, the provisions of this Ordinance are hereby declared to be severable. SECTION | All ordinances and parts thereof in conflict herewith are hereby amended, repealed and superseded to the extent such a conflict exists, including all prior wastewater/sewer rate ordinances, SECTION 9: ‘The rates established herein shall become eff 2028. Until that date, the rates set out in Ordinance No. 33 of 2016, Or: 2016, and Ordinance 70 of 2021 shall remain in effect. PASSED AND APPROVED this the ___day of January, 2028, ‘Tom Farmer, Mayor Cindy Stracener, City Clerk