Cabot Water Rates Stay Flat Through 2032 Under Current Water-Supply Agreement

Cabot, AR, adopted a water-rate schedule that keeps the listed residential inside-city charges flat through 2032 under the city’s current Central Arkansas Water purchase agreement. The same Cabot WaterWorks study models a higher bill if the utility shifts to buying 100% of its water from Central Arkansas Water, but that contingency is not an automatic increase for current customers.

The distinction matters because the study’s projected 83% increase applies only to the 100% purchased-water scenario.

What Cabot adopted

The Cabot City Council’s April 6, 2026, work-session packet presented an ordinance fixing water rates and included a Cabot WaterWorks water-rate study prepared in August 2025. The city’s Agenda Center lists the May 4, 2026, council meeting at which Ordinance No. 15 of 2026 was adopted.

For residential customers inside Cabot city limits, the adopted/current-agreement schedule lists:

$13.50 monthly flat charge;
$3.20 per 1,000 gallons for the first 5,000 gallons; and
$4.20 per 1,000 gallons above 5,000 gallons.

The rate chart remains flat through 2032 under the current purchase agreement. Cabot WaterWorks’ posted rate page lists the same base and usage charges as effective January 1, 2026.

What a 5,000-gallon bill looks like

Under the current-agreement scenario, a residential inside-city customer using 5,000 gallons would pay the $13.50 monthly charge plus five units at $3.20, for a water-only total of $29.50.

The study’s comparison keeps that modeled amount at $29.50 each year through 2032. It is not a complete household utility bill. Wastewater, trash, taxes, fees and other charges may be billed separately, and actual water bills vary with usage and customer class.

Where the 83% figure comes from

The study models a separate scenario in which Cabot buys all of its water from Central Arkansas Water. In that model, an additional purchased-water charge is added to usage rather than replacing Cabot WaterWorks’ base and volume charges.

The modeled purchased-water charge rises from $2.92 per 1,000 gallons in 2026 to $4.91 in 2032. For a 5,000-gallon monthly inside-city bill, the study shows $44.10 in 2026 and $54.05 in 2032 under the 100% purchased-water scenario.

Compared with the $29.50 current-agreement example, the $54.05 projection is an 83% increase by 2032. That is a financial-study comparison, not a council-approved automatic customer charge.

Why the scenarios differ

The rate study evaluates groundwater operations, purchased-water costs from Central Arkansas Water, operating and administrative expenses, capital improvements and debt service. It says maintaining the current purchase agreement is more cost-effective in the modeled period and that the existing rate structure remains sufficient under that scenario.

The study also discusses Arkansas Natural Resources Commission requirements and a possible discontinuation of Cabot’s groundwater well operations. That language is part of the study’s assumptions and should not be read as confirmation that a future 100% CAW purchase arrangement has been finally approved or that every groundwater operation had already ended as of August 3, 2026.

What Cabot residents should watch

For the current-agreement scenario, the adopted schedule and the study’s model point to flat listed residential inside-city water charges through 2032. Any move to a 100% Central Arkansas Water supply arrangement, or any later rate change connected to that decision, would require separate official action and updated customer information.

Bottom line: Cabot’s current adopted water-rate schedule is modeled at $29.50 for 5,000 gallons through 2032. The $54.05 bill and 83% increase belong to a separate contingency scenario in which Cabot purchases all of its water from Central Arkansas Water.

Sources

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