Little Rock Wastewater Rates to Rise 7.25% for 2027

Commercial operators in Little Rock should prepare for a 7.25% annual increase in wastewater charges starting in 2027.

Updated on Oct. 21, 2026 in Utilities

Little Rock Wastewater Rates to Rise 7.25% for 2027

Live Poll

Do you believe the planned rate increases for your local wastewater services are currently justified?

Little Rock Water Reclamation Authority has proposed a 2027 budget featuring a 7.25% rate increase for residential and commercial customers. This adjustment is part of a five-year schedule aimed at covering rising operating and capital costs for the utility.

Why it matters

The utility is scaling spending to $141.2 million, driven by a heavy $70.7 million capital improvement plan that requires higher steady revenue. For local business owners, this marks another year of predictable, compounding utility cost growth as the authority expands its infrastructure and payroll.

The utility expects $81.3 million in revenue, a 6.3% increase over the 2026 budget, while total agency expenses are slated to hit $141.2 million. The plan supports 226 authorized employees, with compensation costs rising as part of the total operating budget.

The players

Little Rock Water Reclamation Authority

The municipal utility responsible for managing wastewater and infrastructure operations for the city.

Little Rock Board of Directors

The city's governing body that provides oversight and authorization for municipal utility rate plans.

Michael Rhoda

The utility's chief financial officer who has managed the organization's financial strategy since 2019.

The details

The rate hikes apply to both fixed and volume-based wastewater charges, impacting 65,000 residential and 7,090 commercial customers. To fund the $70.7 million capital improvement budget, the utility plans to leverage $48.7 million in bond proceeds alongside $22 million in cash and revolving loans. Commercial users remain the primary revenue source, currently accounting for over half of total annual receipts.

2019: Michael Rhoda began working for the utility.
June 2025: Commission endorsed the new rate plan.
October 2025: Little Rock Board of Directors approved the rate plan.
December 2026: Commission scheduled to vote on the 2027 budget.
January 1, 2027: Proposed across-the-board pay increase takes effect.

Market Landscape

This budget proposal follows the five-year rate schedule currently governing the utility's revenue requirements. It highlights a common trend among municipal utilities balancing significant capital improvement needs with consistent annual fee increases for commercial and residential users.

Commercial operators should incorporate a 7.25% increase in wastewater expenses into their 2027 operating forecasts. Review your current volume usage against these fixed and variable charges to see how they affect your margins relative to your 2026 baseline.

The takeaway

Reliable utility rate increases are a staple of long-term capital planning, requiring business owners to build these predictable costs into multi-year financial projections. Monitor the December 2026 commission meeting for any final adjustments to the proposed 2027 spending plan.