Arkansas Acts 605 and 925

Below are attachments that address or relate to Arkansas Act 605 (Water Providers) and Arkansas 925 (Sewer Providers).  Both Acts create additional responsibilities for most Arkansas retail water providers in managing and operating their water and sewer systems.  LCWW/Riviera is directly regulated by these Acts.  The key item addressed by these Acts are:  1) Requirement of a third party Rate Study (Every 5 years), 2) Immediate Rate Implementation unless increases exceeds 50% of current rate (2 years to implement if it does) and 3) The implementation of a Refurbishment and Replacement account; whereby, the provider (LCWW/Riviera) must deposit 5% of gross revenues annually (not to be used for routine maintenace under $1,000).  A 3-5% increase must be implemented in subsequent years.  Any major development project (exceeds 20% of gross revenues) must be reviewed, a new rate study conducted, and a financial impact analysis conducted prior to project implementation.