The Mountain Home City Council Thursday night voted to increase the price of the water the city sells to its wholesale customers.The rate increase does not affect the existing rates for residential or commercial customers on the city’s water system.The increases approved Thursday night apply to purchases made by the Northeast Public Water Authority and the Lakeview-Midway Public Water Authority. The city also has standing agreements with the cities of Gassville and Cotter to sell water to those municipalities, should they require additional water.Beginning with wholesale water metered after Sept. 15, Mountain Home will charge the Northeast Public Water Authority $4.52 per 1,000 gallons pumped, an increase of 4 cents compared to the current whole rates.
The Lakeview-Midway Public Water Authority will be charged $5.30 per 1,000 gallons pumped, an increase of 5 cents.
Should the cities of Gassville or Cotter require additional water, those municipalities would be charged $5.06 per 1,000 gallons pumped, an increase of 5 cents per 1,000 gallons.
Mountain Home’s wholesale water contracts allow for the city to conduct a yearly review its expenses and adjust its wholesale rates to reflect those expenses. Under those agreements, the city is permitted to charge 10 percent above the cost of drawing, treating and pumping the water.
Wholesale water customers usually pass along rate increases by raising the rates the water authority charges its own customers. Those customers will likely see the rate increase reflected on their November bills.
Last year, the City Council raised the rates charged to Northeast Water Authority by 40 cents, the rates charged to Lakeview-Midway by 43 cents, and the rates charged to Gassville or Cotter by 52 cents.
Council members voting in favor of the rate increase were Bob Van Haaren, Susan Stockton, Jennifer Baker, Wayne Almond, Carry Manuel, Jim Bodenhamer and Nick Reed. Paige Evans was the absent council member.
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