Little Rock Water Authority Proposes 2027 Budget
The proposed budget includes increased utility rates for residents and commercial customers.
Updated on Oct. 21, 2026 in Utilities
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The Little Rock Water Reclamation Authority has unveiled a proposed 2027 budget that features annual wastewater rate increases of approximately 7.25%. The plan aims to support a total operating and capital expenditure of $141.2 million.
Why it matters
These rate adjustments are part of a five-year schedule designed to ensure the utility meets its long-term revenue requirements. The revenue helps cover costs for system maintenance and infrastructure improvements for thousands of city customers.
The utility proposes a $70.7 million capital improvement budget for 2027, supported by $48.7 million in bond proceeds and $12 million in cash. Authorized staffing will increase to 226 employees as the agency prepares to serve over 72,000 customers.
The players
Little Rock Water Reclamation Authority
This public agency manages the wastewater collection and treatment services for the city of Little Rock.
Michael Rhoda
He has served as the chief financial officer for the Little Rock Water Reclamation Authority since 2019.
Little Rock Board of Directors
This governing body holds the legislative authority to approve rate plans and budgets for city utilities.
The details
The proposal includes $39.8 million for operating and maintenance costs and $30.8 million for debt service. Commercial users are expected to provide more than half of the total rate revenue generated by the authority in 2027.
Timeline
2019: Michael Rhoda began his tenure as the utility's chief financial officer.
June 2025: The commission formally endorsed the new multi-year rate plan.
October 2025: The Little Rock Board of Directors approved the rate increase schedule.
December 2026: The commission is scheduled to hold a final vote on the 2027 budget.
January 1, 2027: An across-the-board 2.4% pay increase for employees takes effect.
Market Landscape
This budget proposal follows the five-year rate implementation schedule mandated to stabilize the utility's fiscal health. The plan positions the agency to manage rising maintenance costs while competing for capital in a debt-dependent utility market.
Residential and commercial wastewater customers will face a 7.25% rate increase as part of the new fiscal plan. These adjustments will be reflected in future billing cycles as the utility works to fund its upcoming capital improvement projects.
The takeaway
The utilitys financial strategy relies on consistent, multi-year rate hikes to offset high infrastructure costs and debt service obligations. Residents should prepare for recurring annual increases to their wastewater bills through the end of the decade.
What happens next
The Little Rock Water Reclamation Commission is scheduled to conduct a formal vote on the proposed 2027 budget during its December 2026 meeting.
Further reading
For more information on local service updates, visit the Utilities section.
Source note: This article includes information reported by ArkansasOnline.
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