[PAGE 1]
Cabot City Council – Work Session Agenda
Cabot Justice Center
805 W. Main Street, Cabot, AR 72023
April 6, 2026 @ 6:30 pm
CALL TO ORDER
NOMINATING COMMITTEE – CHAIR JAMES REID
MUNICIPAL SERVICES COMMITTEE – CHAIR EDDIE LONG
a. An Ordinance Fixing Rates, Fees, and Deposits for Water and Other
Water Services Rendered by the Cabot Water and Wastewater
Commission – Presented by Cabot Water and Wastewater
BUDGET & PERSONNEL COMMITTEE – CHAIR BRANDON HILLENBURG
POLICE & FIRE COMMITTEE – STEPHEN REDD
a. A Resolution Authorizing the Mayor and City Clerk-Treasurer to
Enter into an Agreement with D5 Ranges for the Construction of a
Police Gun Range – Presented by Brian Boroughs
COMMUNITY DEVELOPMENT COMMITTEE – MAGGIE COPE
MILITARY AFFAIRS COMMITTEE – MATT WEBBER
GENERAL COMMUNITY INPUT
ADJOURNMENT

[PAGE 2]
Municipal Services Committee
Item #1
An Ordinance Fixing Rates, Fees, and Deposits for Water
and Other Water Services Rendered by the Cabot Water and
Wastewater Commission

[PAGE 3]
CITY OF CABOT, ARKANSAS
WATER RATE STUDY
DATE: AUGUST 2025
PREPARED FOR:
Cabot Waterworks
One City Plaza, Suite B
Cabot, AR 72023
(501) 843-4654
PREPARED BY:
Crist Engineers, Inc.
1 Executive Center Court
Little Rock, Arkansas 72211
www.cristengineers.com
Crist Project No. 24044

[PAGE 4]
CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
TABLE OF CONTENTS
1 INTRODUCTION .................................................................................................................... 6
2 WATER FINANCIAL BACKGROUND ........................................................................................ 6
2.1 Water Rates .................................................................................................................. 6
2.2 Recorded Water Revenue and Expenses ........................................................................ 6
2.2.1 Revenue ................................................................................................................... 7
2.2.2 Expenses .................................................................................................................. 7
2.2.3 Current Standings ..................................................................................................... 9
2.3 Water Long-Term Debt Service ...................................................................................... 9
2.4 Debt Service Coverage Ratio (DSCR) and Required Revenue ........................................ 10
2.5 Tracking Water Financial Records for Forecasting ......................................................... 11
2.5.1 Revenue ................................................................................................................. 11
2.5.2 Expenses ................................................................................................................ 11
2.5.3 Recorded Results ................................................................................................... 11
2.6 Analysis Summary ...................................................................................................... 13
3 BILLED WATER MODEL ........................................................................................................ 14
3.1 Water Sold and Number of Connections ...................................................................... 14
3.1.1 Population and Connections ................................................................................... 14
3.1.2 Water Consumption ................................................................................................ 17
3.2 Projecting Water Billed Revenue .................................................................................. 18
3.2.1 Projecting Annual Service Flat Charge Revenue (Minimum) ...................................... 18
3.2.2 Projecting Annual Unit Rate 1 Revenue .................................................................... 19
3.2.3 Projecting Annual Unit Rate 2 Revenue .................................................................... 21
3.2.4 Projecting Total Billed Revenue ................................................................................ 23
4 FORECASTING FINANCIAL RESULTS .................................................................................... 24
4.1 Purchased Water ........................................................................................................ 24
4.2 Operation and Maintenance Expenses (O&M) .............................................................. 26
4.3 General and Administrative Expenses (G&A) ................................................................ 26
4.4 Forecasting Revenue v. Expenses ................................................................................ 28
5 WATER RATE INCREASE....................................................................................................... 31
5.1 Unit Rate Increase CAW .............................................................................................. 31
5.2 Water Rate Increase, 100% Purchased Water from CAW............................................... 33
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[PAGE 5]
CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
5.3 Water Rate Increase, Current Purchase Water Agreement with CAW ............................. 35
5.4 Rate Result Comparison ............................................................................................. 37
6 CONCLUSION .................................................................................................................... 37
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[PAGE 6]
CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
TABLE OF TABLES
Table 2-1: Current Water Rates Implemented by Ordinance 102-2005 ............................................ 6
Table 2-2: 2024 Total Recorded Water Revenue and Expenses ........................................................ 9
Table 2-3: Water Long-Term Debt Service .................................................................................... 10
Table 2-4: Water Long-Term Debt Service Annual Schedule .......................................................... 10
Table 2-5: Water Net Revenue Required ...................................................................................... 10
Table 2-6: Tracking Recorded Water Revenue and Expenses ......................................................... 12
Table 3-1: Projected Active Metered Connections and Distribution ............................................... 16
Table 3-2: Master Metered, Multi-Unit Connections (Water) ......................................................... 16
Table 3-3: Projected Water Consumption and Distribution ........................................................... 18
Table 3-4: Projected Minimum Water Billed Revenue (2024) ......................................................... 19
Table 3-5: Average Consumption of Connection which Consume less than 5,000 Gallons per Month
................................................................................................................................................. 20
Table 3-6: Projected Annual Water Unit Rate 1 Revenue (2024) ..................................................... 21
Table 3-7: Projected Annual Unit Rate 2 Revenue (2024)............................................................... 22
Table 3-8: Total Annual Projected Water Billed Revenue (2024) ..................................................... 23
Table 4-1: CAW 100% Purchased Water Expense Projections ....................................................... 25
Table 4-2: CAW Current Purchase Agreement Water Expense Projections .................................... 25
Table 4-3: Shared G&A Expenses ................................................................................................ 27
Table 4-4: Projected Water Revenue vs. Expenses (100% Caw Purchase) ...................................... 29
Table 4-5: Projected Water Revenue vs. Expenses (Current CAW Purchase Agreement) ................ 30
Table 5-1: CAW Unit Rate Increase .............................................................................................. 32
Table 5-2: Water Rate Increase (100% Purchased Water) ............................................................. 34
Table 5-3: Water Rate Results (CAW Current Purchase Water Agreement) .................................... 36
Table 5-4: Average Bill (5,000 gallons per month) Comparison ...................................................... 37
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[PAGE 7]
CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
TABLE OF FIGURES
Figure 3-1: Population Projection ................................................................................................ 15
Figure 3-2: Connection Projections ............................................................................................. 15
Figure 3-3: Consumption Projection Chart .................................................................................. 17
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[PAGE 8]
CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
1 INTRODUCTION
The Cabot Water and Wastewater Commission DBA Cabot Waterworks has been vested with the
authority and responsibility for the proper operation, maintenance and improvement of the water and
wastewater systems of the City of Cabot pursuant to the authority provided by Arkansas Code
Annotated §§ 14-234-116, and 14-234-30 I, et seq.
Cabot Waterworks, located in Cabot, Arkansas, serves a population of 27,515 through 11,127
metered connections as of 12/31/2024. This total includes master meter connections that serve
1,426 multi-unit residential customers and 154 multi-unit commercial customers, such as
apartment complexes and shopping malls. The utility is led by Tim Joyner, P.E., with Bruce Brown as
the Financial Manager. The water system currently sources water from the Alluvial aquifer, with a
maximum intake capacity of 4.0 MGD. Cabot Waterworks also has a purchase agreement with
Central Arkansas Water (CAW). This agreement includes a minimum purchase of 0.3 MGD and a
maximum of 9.0 MGD. The Arkansas Natural Resources Commission has mandated Cabot
Waterworks discontinue its groundwater well operations by 2026. Without other internal water
sources, this change would require Cabot to purchase 100% of its water from CAW. Additionally,
Cabot Waterworks maintains an emergency connection to Jacksonville Waterworks but does not
currently have a purchase agreement in place with Jacksonville.
2 WATER FINANCIAL BACKGROUND
2.1 Water Rates
Table 2-1 presents the current rate structure for Cabot Waterworks. The Service Flat Charge is a base
fee applied prior to any water consumption and does not include any water usage. Unit Rate 1 is
charged per 1,000 gallons for the first 5,000 gallons consumed. For any usage beyond this amount,
Unit Rate 2 applies, also charged per 1,000 gallons.
Water Rates
Unit Rate 1 Unit Rate 2
Service Flat (Less than (Over 5,000
Customer Class
Charge 5,000 gallons) gallons)
(Cost/1,000 gal) (Cost/1,000 gal)
Residential Inside City (Includes Multi-Unit Connections) $13.50 $3.20 $4.20
Residential Outside City $16.50 $4.20 $5.20
Sprinkler $16.50 $4.20 $5.20
Commercial (Includes Multi-Unit Connections $16.50 $4.20 $5.20
Table 2-1: Current Water Rates Implemented by Ordinance 102-2005
2.2 Recorded Water Revenue and Expenses
Cabot Waterworks has supplied internal financial documents showing recorded revenue and
expenditure for the rate study.
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[PAGE 9]
CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
2.2.1 Revenue
Billed Revenue: Cabot Waterworks accounts for water Billed Revenue spread across residential
inside-city sales (metered and multi-unit), residential outside-city sales, commercial user sales
(metered and multi-unit), and sprinkler user sales. This is all combined in a line item listed as Water
Revenue.
Non-Rate Revenue: Cabot Waterworks collects revenue from service connection fees,
disconnection fees, late charges, returned checks, and miscellaneous charges. Revenue from EPAC
and Sanitation is excluded from this rate study as these amounts are directly deducted. They also
receive revenue from interest income, Antenna lease, Other Income, and sales tax discounts.
2.2.2 Expenses
Cabot tracks expenditures in two categories: Operations and Maintenance (O&M) and General and
Administrative (G&A) expenses. Currently, O&M and G&A expenses are allocated separately for water
and wastewater, with additional combined G&A expenses split between both. 80% of these
combined G&A expenses currently go to water.
Table 2-2 below displays the recorded revenue and expenses from 2024.
2024 Recorded Revenue and Expenditures
Operating Revenue Expenses
BILLED REVENUE
Water Revenue $4,973,604.25
NON-RATE REVENUE
Fees - Service Connection $38,070.00
Fees - Disconnection $22,620.00
Fees- Late Charges $107,378.28
Return checks & fees $5,520.00
Miscellaneous $14,844.53
Interest Income $208,297.63
Antenna Lease $78,611.15
Other Income $96,539.40
Sales Tax Discounts $39,320.84
Total Non-Rate Revenue $611,201.83
Total Revenue $5,584,806.08
EXPENSES
Operations and Maintenance
Power $182,920.44
Labor $1,073,640.05
Capitalized Labor Cost ($328,992.54)
Payroll Taxes $82,375.87
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[PAGE 10]
CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
Retirement $165,932.79
Insurance - workers comp $19,913.92
Insurance - health $139,023.74
Outside labor $10,849.66
Lab fees & Supplies $13,481.93
Chemicals $30,166.86
Materials & Supplies $82,865.94
Street Repairs $15,653.57
Small Tools $12,675.18
Safety Supplies $5,631.54
Equipment Rentals $139.76
Purchased Water (CAW) $334,736.00
Licenses/permits/fees $460.00
R & M - Plant $1,086.59
R & M - Field vehicles $74,593.13
R & M - Field Equipment $12,936.23
Fuel - Field $57,293.54
Insurance - vehicles & equipment $17,380.28
Insurance - property $28,674.58
Public Safety $294,711.86
Total O&M Expenses $2,328,150.92
General and Administrative
Bad Debt $17,785.33
Dues & Subscriptions $14,373.97
Education & Seminars $200.00
Employee recognition $272.04
Licenses and permits $305.00
Locator expenses/One call $1,843.92
Medical $0.00
Office $2,868.24
Postage & Delivery $57,558.45
Printing & Reproduction $6,934.12
Professional fees - well monitoring $7,200.00
Public relations (Customer Damages) $867.92
Public Notification $0.00
Rent- Building $22,350.00
R & M - office $162.93
R & M - Building $417.22
Travel $52.43
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[PAGE 11]
CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
Uniforms and PPE $9,995.83
Utilities - electricity and gas $2,869.06
Utilities - other $3,403.13
Utilities - telephone $6,827.53
Utilities - cellular $8,699.08
Purchase discounts $0.00
Penalties and fines $0.00
G&A allocations (80/20 Split) $776,572.93
Total General and Administrative Expenses $941,559.13
Total Expenses $3,269,710.05
5% Repair and Refurbish $279,240.30
Capital Improvements $1,034,307.00
Net Revenue $1,001,548.73
Table 2-2: 2024 Total Recorded Water Revenue and Expenses
2.2.3 Current Standings
Cabot Waterworks' recorded revenue has exceeded its recorded expenses. They also account for
their debt services, which will be further discussed in the next section, along with a 5% gross revenue
repair and refurbish reserve. By incorporating the 5% repair and refurbish reserve while covering their
debt service and operation and maintenance expenses, they are meeting certain requirements of Act
605.
2.3 Water Long-Term Debt Service
Cabot Waterworks entered into a Bond Purchase Agreement on January 13, 2005, to finance the
planning, design, construction, and rehabilitation of the water system in the amount of $8,000,000.
The bond is repaid through semiannual installments of $254,820.27, which includes a 1% servicing
fee, and will mature at the end of 2026, within the projection period of this rate study.
On August 8, 2008, Cabot Waterworks entered into a Bond Purchase Agreement for an authorized
amount of $13,000,000, intended for financing the planning, design, construction, and rehabilitation
of the water system. However, the loan closed at $7,091,943, as the full amount was not utilized. This
bond is repaid through semiannual installments of $230,119.17, which includes a 1% servicing fee,
and will mature in 2030, within the projection of this rate study.
Both bonds were refinanced on December 1, 2020. These are the only two long-term debts currently
being serviced by Cabot Waterworks. Table 2-3 summarizes these debts after refinancing, detailing
the annual payment amounts for each bond, and the total combined payment. While Table 2-4
displays the projected total annual payments over the period covered in this rate study.
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[PAGE 12]
CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
Bond
Date Original Amount Annual Amount (2024)
Water and Wastewater Revenue Bonds 2026 (A) 13-Jan-05 $8,000,000 $503,516.37
Water and Wastewater Revenue Bonds 2030 8-Aug-08 $13,000,000 $454,707.83
Total Debt Service 2024 $958,224.20
Table 2-3: Water Long-Term Debt Service
Year
2024 2025 2026 2027 2028 2029 2030
Bonds 2026 (A) $503,516.37 $503,516.37 $503,516.37 $0.00 $0.00 $0.00 $0.00
Bonds 2030 $454,707.83 $454,707.83 $454,707.83 $454,707.83 $454,707.83 $454,707.83 $227,353.92
Total $958,224.20 $958,224.20 $958,224.20 $454,707.83 $454,707.83 $454,707.83 $227,353.92
Table 2-4: Water Long-Term Debt Service Annual Schedule
2.4 Debt Service Coverage Ratio (DSCR) and Required Revenue
In calculating the Debt Service Coverage Ratio (DSCR), the net revenue is determined by subtracting
total expenses, capital improvements, and the required repair and refurbish reserve, from the total
revenue. This resulting net revenue is then divided by the debt service.
𝑁ⅇ𝑡 𝑅𝑒𝑣𝑒𝑛𝑢𝑒
= 𝐷𝑆𝐶𝑅
𝐷𝑒𝑏𝑡 𝑆𝑒𝑟𝑣𝑖𝑐𝑒
Act 605 requires a Debt Service Coverage Ratio (DSCR) of 1.10 while meeting all other requirements,
including the 5% gross revenue repair and refurbish and funding all operation and maintenance
expenses. To determine the Net Revenue Required (NRR), the DSCR is set to 1.10. The debt service
is set to $958,224 for 2025’s debt service requirement.
𝑁𝑅𝑅
= 1.10
$958,224
Multiply the DSCR of 1.10 by the Debt Service to get the NRR.
𝑁𝑅𝑅 = 1.10 × $958,224
𝑁𝑅𝑅 = $1,054,047
Table 2-5 shows the Net Revenue Required.
Item
Amount
Required DSCR 1.10
Debt Service $958,224
Net Revenue Required (NRR) $1,054,047
Table 2-5: Water Net Revenue Required
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[PAGE 13]
CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
2.5 Tracking Water Financial Records for Forecasting
This section reviews recorded revenue and expenses since 2022 to forecast future financial trends.
This rate study uses a forecast based on historical growth trends.
2.5.1 Revenue
Revenue sources include both billed and non-rate income. Billed revenue comes from residential
(metered inside, and outside city limits, and multi-unit), commercial (metered and multi-unit), and
sprinkler connections. Non-rate revenue includes fees from new connections, disconnections, late
charges, returned checks, interest, antenna leases, sales tax discounts, and other miscellaneous
sources.
2.5.2 Expenses
Cabot Waterworks categorizes expenses into Operations & Maintenance (O&M) and General &
Administrative (G&A). Purchased water and public safety, while part of O&M, are highlighted
separately but included in the total O&M calculation.
G&A expenses have also been separated to distinguish water-specific G&A costs from shared office
G&A expenses, which are currently funded through an 80/20 split between water and wastewater
revenue, with water covering 80% of the shared costs.
2.5.3 Recorded Results
Net revenue, which is the difference between revenue, expenses, and capital improvements, is used
to cover debt services. Table 2-6 compares revenue and expenses for 2022, 2023, and 2024, along
with the resulting net revenue.
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[PAGE 14]
CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
2022 2023 2024
BILLED REVENUE
Water Revenue $4,454,361 $4,970,906 $4,973,604
NON-RATE REVENUE
Fees - Service Connection $25,050 $54,079 $38,070
Fees - Disconnection $25,300 $25,340 $22,620
Fees- Late Charges $98,643 $106,459 $107,378
Return checks & fees $4,208 $4,496 $5,520
Miscellaneous $9,700 $24,728 $14,845
Interest Income $58,715 $199,331 $208,298
Antenna Lease $97,421 $76,569 $78,611
Other Income $26,783 $92,730 $96,539
Sales Tax Discounts $15,705 $25,442 $39,321
Total Non-Rate Revenue $361,524 $609,173 $611,202
Total Revenue $4,815,885 $5,580,079 $5,584,806
EXPENSES
O&M Expenses $1,435,665 $1,680,051 $1,698,703
Purchased Water $242,838 $246,371 $334,736
Public Safety
(5% Prior Year Billed Revenue + $35,000 for In-Lieu of $257,285 $262,672 $294,712
Taxes)
Total O&M Expenses $1,935,788 $2,189,093 $2,328,151
G&A Expenses (Water) $199,815 $203,144 $164,986
G&A Expenses (Shared) $647,036 $665,282 $776,573
Total G&A Expenses $846,851 $868,426 $941,559
Total Expenses $2,782,640 $3,057,519 $3,269,710
Repair and Refurbish $96,742 $98,787 $279,240
Capital Improvements $879,579 $682,381 $1,034,307
Net Revenue $1,056,924 $1,741,392 $1,001,549
Table 2-6: Tracking Recorded Water Revenue and Expenses
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[PAGE 15]
CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
2.6 Analysis Summary
Cabot Waterworks has seen growth in both revenue and expenses over the study period. However,
expenses have increased at a faster rate than billed revenue. To address these trends in future
projections:
• Expenses will be projected with a 4% annual increase, based on recorded expenses.
• Non-rate revenue will be projected with a 3% annual increase, aligned with the historical
growth.
With these assumptions in place, Section 3 will detail the methodology used to project billed
revenue, providing the foundation for financial forecasting. Section 4 will then compare the projected
revenue with forecasted expenses to ensure financial feasibility and sustainability.
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[PAGE 16]
CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
3 BILLED WATER MODEL
The following sections will outline the methodology for projecting the impact of adjustments to the
current rate structure. The model will be validated by applying 2024 consumption and connection
data to the current rate structure and comparing the results to the recorded billed revenue for 2024.
3.1 Water Sold and Number of Connections
Part of projecting the results of a rate adjustment requires determining the amount of water used
(gallons), number of connections per connection type, and the existing rates.
3.1.1 Population and Connections
Connections refer to the number of active meters within the Cabot Waterworks system across all
customer classes. The number of connections is a significant factor in Billed Revenue, as it directly
influences the minimum revenue projected from the debt service fee (Service Flat Charge), which is
charged to each customer regardless of water consumption.
The number of connections can be projected based on population trends. The City of Cabot has
experienced consistent population growth. Since 1970, the city has had an average annual growth
rate of 4.28%, but this rate has slowed to an average of 1.23% over the past decade. Figure 3-1
displays the recorded population from 1970, with a linear trendline to support projections. Using the
1.23% annual growth rate, the orange line in the chart represents the projected population over the
period covered by this rate study.
3.1.1.1 References
• City of Cabot. Community Profile and Demographics.
• Encyclopedia of Arkansas. Cabot (Lonoke County).
• U.S. Census Bureau. Decennial Census Data, Cabot, Arkansas.
• Arkansas Site Selection. Community Data for Cabot, Arkansas.
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CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
Population
35000
Recorded
30000
Population
25000 Projected
Population
20000
Linear (Recorded
Population)
15000
10000
5000
0
0 2 4 6 8 0 2 4 6 8 0 2 4 6 8 0 2 4 6 8 0 2 4 6 8 0 2 4 6 8 0
7 7 7 7 7 8 8 8 8 8 9 9 9 9 9 0 0 0 0 0 1 1 1 1 1 2 2 2 2 2 3
9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Figure 3-1: Population Projection
Population can be related to connections by dividing the number of recorded connections by the
recorded population for the same year. Cabot Waterworks data indicates an average of 2.55 people
per connection, while the U.S. Census Bureau reports 2.62 people per household in the City of
Cabot. For this rate study, Cabot’s estimate of 2.55 people per connection will be used to project
future connections as the population increases. Figure 3-2 compares the projected population with
both the recorded number of connections and the projected number of connections based on
population growth and 2.55 people per connection. This projection includes all customer classes.
Population and Connections
35000
30000 Recorded Population
Projected Population
25000
Connections (Recorded)
20000
Connections (Projected)
15000
10000
5000
0
0 2 4 6 8 0 2 4 6 8 0 2 4 6 8 0 2 4 6 8 0 2 4 6 8 0 2 4 6 8 0
7 7 7 7 7 8 8 8 8 8 9 9 9 9 9 0 0 0 0 0 1 1 1 1 1 2 2 2 2 2 3
9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Figure 3-2: Connection Projections
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[PAGE 18]
CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
The population curve is now displayed as a dashed line, while the connection line remains solid.
Comparing the two, the shapes of the curves are similar. To allocate the total number of connections
among the customer classes, the average percentage of each class relative to the total number of
connections for each year is used. Table 3-1 below shows the total recorded active connections and
their distribution among customer classes, along with the projected connections and their
calculated distribution across the customer classes. Miscellaneous connections, including vacation
meters and customers who have moved, will be included with Residential Inside City Connections
for rate result projections.
Total Billed
Residential Residential Miscellaneous
Year Meter Sprinkler Commercial
Inside City Outside City Connections
Connections
Average Precent Per
84.15% 5.96% 1.75% 6.57% 1.57%
Connection Class
2024 11,127 9,363 663 195 731 175
2025 11,264 9,479 671 197 740 177
2026 11,402 9,595 680 200 749 179
2027 11,543 9,713 688 202 758 181
2028 11,685 9,833 696 204 768 183
2029 11,828 9,954 705 207 777 186
2030 11,974 10,076 714 210 787 188
2031 12,121 10,200 722 212 796 190
2032 12,270 10,325 731 215 806 193
Table 3-1: Projected Active Metered Connections and Distribution
Additionally, Cabot Waterworks serves several master meter connections, which are included in the
total connections shown in the table above. These master meter connections encompass multi-unit
residential and multi-unit commercial properties, each of which is charged a monthly Service Flat
Charge. To maintain consistency with the overall connection projections, a 1.23% annual increase
will be applied to multi-unit connections throughout the projection period. Table 3-2 presents the
recorded 2024 multi-unit commercial and residential connection counts along with their projected
growth.
Year
Multi-Unit Residential Multi-Unit Commercial Total
2024 1,426 154 1,580
2025 1,444 156 1,599
2026 1,461 158 1,619
2027 1,479 160 1,639
2028 1,497 162 1,659
2029 1,516 164 1,680
2030 1,535 166 1,700
2031 1,553 168 1,721
2032 1,573 170 1,742
Table 3-2: Master Metered, Multi-Unit Connections (Water)
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[PAGE 19]
CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
3.1.2 Water Consumption
Water consumption significantly influences water Billed Revenue since the unit rate, charged per
1,000 gallons, applies to all customer consumption; no water usage is included in the Service Flat
Charge. Cabot Waterworks has provided 18 years of monthly recorded consumption data. By totaling
the monthly recorded consumption for each year and plotting these annual values on a chart,
projections could be developed. Similar to the population projection method, a trendline was added
to the chart. However, instead of a linear trendline, a second-order polynomial trendline proved to be
more suitable.
Two methods were used to project annual consumption, both yielding very similar results. The first
method involved comparing each month from one year to the next to determine the percentage
change in consumption. For instance, February 2015 to February 2016 showed a -0.94% change,
indicating a decrease. This process was repeated for each month across the available data, and the
percentage changes for each month over the past decade (2014–2024) were averaged. The average
percentage change for each month was then applied to the most recent monthly recorded data,
projecting consumption for each month over the study period. The monthly totals were summed to
provide annual consumption projections.
The second approach involved comparing year-to-year consumption changes and calculating the
average percent growth over the past decade. This average growth rate was then applied to the most
recent recorded year's total consumption. Both projection methods produced comparable results,
as illustrated in Figure 3-3.
Consumption Projection
Recorded Consumption
850,000,000
Projected Annual Consumption by Monthly
Increase
800,000,000 Projected Annual Increase by Averave Annual
percent Increase since 2014
Poly. (Recorded Consumption)
750,000,000
700,000,000
650,000,000
600,000,000
6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0
0 0 0 0 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 3
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Figure 3-3: Consumption Projection Chart
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CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
The green line in the projection chart represents the average annual percentage increase, while the
orange line reflects the monthly year-over-year percentage increase. Both methods show a gentler
upward slope compared to the overall trendline. For projecting revenue from water consumption, the
average annual percentage increase method will be utilized, as it has demonstrated a steady
increase of 1.35% since 2015.
The distribution of projected consumption across customer classes follows a process similar to how
connections are distributed. Analyzing the chart, there was a consistent pattern from 2019 through
2024, which serves as the sample period for calculating the average consumption percentage per
customer class relative to total consumption. Cabot Waterworks also provided detailed annual
consumption data for each customer class. By comparing the recorded consumption for each class
with total annual consumption over the sample period, average percentages for each customer class
were established. Table 3-3 below outlines the consumption distribution among customer classes
and the respective percentages derived from this analysis.
Total Residential Residential Non-
Year Sprinkler Commercial
Consumption Inside City Outside City Revenue
2024
748,082,900 538,117,400 42,381,400 39,923,600 112,785,500 14,875,000
(Recorded)
Average Percent Consumption per
73.03% 5.70% 5.01% 14.64% 1.62%
Customer Class
2025 758,199,600 553,712,814 43,251,839 37,966,258 111,020,030 12,248,659
2026 768,453,114 561,200,950 43,836,756 38,479,695 112,521,409 12,414,304
2027 778,845,291 568,790,352 44,429,582 39,000,075 114,043,093 12,582,189
2028 789,378,006 576,482,389 45,030,426 39,527,492 115,585,355 12,752,344
2029 800,053,161 584,278,450 45,639,395 40,062,042 117,148,473 12,924,800
2030 810,872,681 592,179,940 46,256,599 40,603,822 118,732,731 13,099,589
2031 821,838,519 600,188,287 46,882,150 41,152,927 120,338,413 13,276,741
2032 832,952,653 608,304,934 47,516,161 41,709,459 121,965,810 13,456,289
Table 3-3: Projected Water Consumption and Distribution
*Non-Revenue water for City facilities and Parks Department, water consumption was considered
solely for determining the average percentage distribution across customer classes. However, for
projecting revenue from the rate structure, non-revenue water consumption is excluded.
3.2 Projecting Water Billed Revenue
The connections from Table 3-1 and water use per connection type from Table 3-3 and Table 3-2 will
be used to project the results of a rate increase for Cabot Waterworks.
3.2.1 Projecting Annual Service Flat Charge Revenue (Minimum)
Projecting the annual minimum expected Billed Revenue for all users across the system is
calculated by multiplying the Service Flat Charge by the number of connections and then by 12
months.
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CABOT WATERWORKS
WATER RATE STUDY
𝑃𝑟𝑜𝑗𝑒𝑐𝑡𝑒𝑑 𝐴𝑛𝑛𝑢𝑎𝑙 𝑀𝑖𝑛𝑖𝑚𝑢𝑚 𝑅𝑒𝑣𝑒𝑛𝑢𝑒
= 𝑆𝑒𝑟𝑣𝑖𝑐𝑒 𝐹𝑙𝑎𝑡 𝐶ℎ𝑎𝑟𝑔𝑒 ×𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐶𝑜𝑛𝑛𝑒𝑐𝑡𝑖𝑜𝑛𝑠 ×12 𝑚𝑜𝑛𝑡ℎ𝑠
For Residential Inside-City metered users, using the equation above, the projected annual minimum
revenue would be:
𝑃𝑟𝑜𝑗𝑒𝑐𝑡𝑒𝑑 𝐴𝑛𝑛𝑢𝑎𝑙 𝑀𝑖𝑛𝑖𝑚𝑢𝑚 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 =$13.50 𝑝𝑒𝑟 𝑚𝑜𝑛𝑡ℎ ×9,538 𝐶𝑜𝑛𝑛𝑒𝑐𝑡𝑖𝑜𝑛𝑠 ×12 𝑚𝑜𝑛𝑡ℎ𝑠
𝑃𝑟𝑜𝑗𝑒𝑐𝑡𝑒𝑑 𝐴𝑛𝑛𝑢𝑎𝑙 𝑀𝑖𝑛𝑖𝑚𝑢𝑚 = $1,545,156
Table 3-3 below presents the projected minimum Billed Revenue, calculated using the current
Service Flat Charges and the number of connections for each connection class, based on the
recorded connection count from 2024. The projected minimum revenue from this fee is calculated
using the same process as described above.
Customer Class Connections Count Service Flat Fee Projected Revenue
Metered Connections
Residential Inside City +
9363+175=9538 $13.50 $1,545,156
Miscellaneous
Residential Outside City 663 $16.50 $131,274
Sprinkler 195 $16.50 $38,610
Commercial 731 $16.50 $144,738
Multi-Unit Connection
Residential 1,426 $13.50 $231,012
Commercial 154 $16.50 $30,492
Total Minimum Projected Revenue $2,121,282
Table 3-4: Projected Minimum Water Billed Revenue (2024)
3.2.2 Projecting Annual Unit Rate 1 Revenue
To project annual revenue from the Unit Rate 1 threshold, the average number of residential
connections, both inside and outside the city, who use less than or exceed the Unit Rate 1 threshold
of 5,000 gallons per month must first be determined, along with their average monthly consumption.
For connections using between 0 and 5,000 gallons per month, the number of connections in each
consumption category (0–2,000 gallons, 2,000–4,000 gallons, and 4,000–5,000 gallons) was
multiplied by the assumed average consumption for each category—1,000, 3,000, and 5,000
gallons, respectively. The resulting values were summed, and the total consumption was divided by
the total number of connections in these categories to determine the average consumption within
the 0–5,000-gallon range. This calculation was repeated for each month from 2019 through 2024,
with the monthly averages used to determine an overall average consumption of 2,621 gallons per
month for this range.
Table 3-5 presents this methodology by displaying the annual average number of connections per
consumption threshold, the total number of connections using 1 to 5,000 gallons per month, and the
annual average consumption per connection within this range.
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CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
Year Connections that Connections that Connections that Total Annual Average
Consume Consume 2,001 - Consume 4,001 - Connections Consumption
0 - 2,000 gallons 4,000 gallons per 5,000 gallons per (gallons)
per month month month
2019 2,253 3,397 1,137 6,786 2,671
2020 2,248 3,351 1,150 6,748 2,675
2021 2,373 3,470 1,108 6,951 2,636
2022 2,513 3,485 1,075 7,073 2,594
2023 2,622 3,550 1,079 7,250 2,574
2024 2,621 3,512 1,084 7,217 2,574
Overall Average Consumption (gallons) 2,621
Table 3-5: Average Consumption of Connection which Consume less than 5,000 Gallons per Month
From 2019 through December 2024, an average of 70.7% (71%) of all residential connections used
less than 5,000 gallons per month (%<5K), while 29.3% (29%) used more than 5,000 gallons per
month (%>5K).
To project the revenue from residential inside city connections from Unit Rate 1, the following
formula is applied:
1. Multiply the total number of connections (TC) by the percentage that consumes less than
5,000 gallons per month (%<5K) and then multiply that by the average consumption (AC) for
these connections (2,621 gallons), divided by 1,000 to align the units with the rate.
2. Multiply the total number of connections (TC) by the percentage that exceeds 5,000 gallons
per month (%>5K), and then multiply that by 5, representing the 5,000 gallons of
consumption before Unit Rate 2 applies.
3. Add the two results from the above steps and then multiply by Unit Rate 1 (UR1).
4. Finally, multiply this sum by 12 to convert it to an annual projection.
The following equation represents the Projected Annual Unit Rate 1 Revenue.
𝐴𝐶
𝑃𝐴𝑈𝑅1 = (𝑇𝐶 ×(% < 5𝐾) × +𝑇𝐶 ×(% > 5𝐾)×5)×𝑈𝑅1×12 𝑚𝑜𝑛𝑡ℎ𝑠
1,000
Where,
PAUR1 = Projected Annual Unit Rate 1 Revenue ($)
%<5K = Average Percent of connections that use less than 5,000 gallons per month
%>5K = Average Percent of connections that use more than 5,000 gallons per month
TC = Total Number of Connections per customer class
AC = Average Consumption (2,621 gallons (calculated))
UR1 = Unit Rate 1 (Cost/1,000 gallons)
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CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
For Residential Inside City users, using the equation above, the projected annual Unit Rate 1 revenue
would be:
2,621
𝑃𝐴𝑈𝑅1 = (9,538 ×(71%) × +9,538 ×(29%)×5)×$3.20×12
1,000
𝑃𝐴𝑈𝑅1 = $1,212,556
Table 3-6 illustrates the projected Unit Rate 1 revenue based on the current rate structure for all user
types. For sprinkler and commercial connections, it is assumed that 100% of these connections
exceed the Unit Rate 1 threshold, based on their annual recorded consumption patterns.
Connections which
Total Projected Annual Unit Rate 1
Customer Class Consumed less than Rate
Connections Revenue
5,000 gallons per Month
Residential Inside City 9,538 6,772 $3.20 $1,212,556
Residential Outside City 663 471 $4.20 $110,626
Sprinkler 195 0 $4.20 $49,140
Commercial 731 0 $4.20 $184,212
Total $1,556,534
Table 3-6: Projected Annual Water Unit Rate 1 Revenue (2024)
3.2.3 Projecting Annual Unit Rate 2 Revenue
To project the annual revenue from Unit Rate 2, first calculate the consumption under the Unit Rate
1 threshold. Multiply the total number of connections (TC) by the percentage of customers using less
than 5,000 gallons per month (%<5K) and then by their average monthly consumption. Then, for
customers exceeding 5,000 gallons per month, multiply the total connections (TC) by the percentage
of connections over 5,000 gallons (%>5K) and then by 5,000 gallons. Add these two products and
multiply by 12 to annualize this amount, giving the estimated annual consumption under Unit Rate
1.
Next, subtract this annual amount from the total annual consumption (TAC) for the customer class
to find the remaining consumption applicable to Unit Rate 2. Convert this remaining consumption to
thousands of gallons, then multiply by Unit Rate 2 (UR2) to estimate the annual revenue from Unit
Rate 2.
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CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
The following formula represents the description on the previous page.
𝑇𝐴𝐶−12×((𝑇𝐶×(% < 5𝐾)×𝐴𝐶)+(𝑇𝐶×(% > 5𝐾)×5,000))
𝑃𝐴𝑈𝑅2= ×𝑈𝑅2
1,000
For Residential Inside City users, using the equation above, the projected annual Unit Rate 2 revenue
would be:
538,117,400−12×((9,538×(71%)×2,621)+(9,538×(29%)×5,000))
𝑃𝐴𝑈𝑅2 = ×$4.20
1,000
𝑃𝐴𝑈𝑅2 =$668,614
Table 3-7 illustrates the projected Unit Rate 2 revenue based on the current rate structure for all user
types. For sprinkler and commercial connections, it is assumed that 100% of these connections
exceed the Unit Rate 1 threshold, based on their annual recorded consumption patterns.
Customer Class
Annual Consumption Rate Projected Revenue
Residential Inside City 538,117,400 $4.20 $668,614
Residential Outside City 42,381,400 $5.20 $83,418
Sprinkler 39,923,600 $5.20 $146,763
Commercial 112,785,500 $5.20 $358,413
Total $1,257,207
Table 3-7: Projected Annual Unit Rate 2 Revenue (2024)
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CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
3.2.4 Projecting Total Billed Revenue
To project total Billed Revenue, add the Projected Annual Minimum Billed Revenue to the Projected
Annual Unit Rate1 and 2 Revenue for each customer type, and then sum these values. Table 3-8
presents the projected total revenue.
Projected Annual Projected Annual Unit Projected Annual Total Per Customer
Customer Class
Minimum Rate 1 Unit Rate 2 Class
Residential Inside
$1,545,156 $1,212,556 $668,614 $3,426,325
City
Residential
$131,274 $110,626 $83,418 $325,318
Outside City
Sprinkler $38,610 $49,140 $146,763 $234,513
Commercial $144,738 $184,212 $358,413 $687,363
Multi-Unit
$231,012 $0.00 $0.00 $231,012
Residential
Multi-Unit
$30,492 $0.00 $0.00 $30,492
Commercial
Total $4,935,022
Table 3-8: Total Annual Projected Water Billed Revenue (2024)
The recorded billed revenue for 2024 was $4,973,604, while the model results show a difference of
$38,582 (0.78%) compared to the recorded expenses for the same year. This discrepancy is primarily
due to variations in actual versus assumed consumption patterns, rounding differences in the rate
calculations, and fluctuations in the number of connections throughout the year. The model relies
on the current rate structure, recorded consumption per connection class, average number of
connections, and assumed averages for connections within rate thresholds. Despite the small
difference, the results indicate that the model closely aligns with actual revenue, supporting its
reliability for future projections.
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CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
4 FORECASTING FINANCIAL RESULTS
This section presents financial projections for Cabot Waterworks, considering both a transition to a
100% purchased water agreement with CAW and maintaining the current purchase agreement. Most
O&M and G&A expenses will be projected with a 4% annual increase applied to 2024’s recorded
expenses, as identified in Section 2.6. Additionally, a 3% annual increase will be applied to all non-
rate revenue, while billed revenue will be projected using the model methodology outlined in Section
3.
4.1 Purchased Water
Cabot Waterworks currently relies on groundwater as its primary water source. However, as
discussed earlier in this report, it will be required to discontinue using groundwater by 2026. This
transition could require Cabot Waterworks to purchase all of its water supply from Central Arkansas
Water (CAW), which will significantly increase purchase water expenses due to both the higher
volume of purchased water and the scheduled rate increases set by CAW (CAW’s Rate schedule is
provided in the Appendix of this report).
Currently, Cabot Waterworks purchases 0.3 MGD from CAW, which is approximately 11.87% of its
total water use projected for 2025. To assess the financial implications of maintaining this purchase
agreement versus transitioning to 100% purchased water, two projections have been made:
• Table 4-1 presents the projected purchase water expenses if Cabot Waterworks transitions
to fully purchasing its water from CAW.
• Table 4-2 replicates these projections but assumes Cabot continues to purchase only 0.3
MGD.
Under the current agreement with CAW, the percentage of water purchased is used to determine
additional charges on top of the Master Meter Fee and unit rate. These charges include the
Development Fee, Watershed Protection Fee, and Infrastructure Fee. For example, Cabot
Waterworks pays only the percentage of the Infrastructure Fee per meter that corresponds to the
percentage of water purchased from CAW. However, if the system transitions to 100% purchased
water, these fees will increase proportionally.
Cabot Waterworks reported a total of 910,495,860 gallons of water pumped in 2024, which includes
water loss. Using the projected annual consumption increase of 1.35%, the same growth rate will be
applied to estimate the total water pumped in future years. This projection represents the total
volume of water that would be purchased from CAW under a 100% purchased water agreement.
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CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
2025 2026 2027 2028 2029 2030 2031 2032
Projected Annual Total Water Pumped (MG) 922.8 935.2 947.9 960.7 973.6 986.8 1000.1 1013.6
Percent Purchased 11.87% 100% 100% 100% 100% 100% 100% 100%
Meter Charge (per Month) $1,867 $2,007 $2,158 $2,314 $2,430 $2,552 $2,679 $2,813
Development Fee (per Month) $1,790 $1,812 $1,834 $1,857 $1,880 $1,903 $1,926 $1,950
Watershed Protection Fee (per Month) $1,275 $10,879 $11,013 $11,148 $11,285 $11,424 $11,565 $11,707
Infrastructure Fee (per Month) $1,198 $13,618 $20,679 $34,889 $49,445 $53,637 $57,907 $62,292
Monthly Water Purchased $23,894 $181,676 $198,041 $215,643 $229,482 $244,508 $260,760 $278,282
Total Annual Fees and Water Purchased $360,298 $2,519,915 $2,804,695 $3,190,219 $3,534,268 $3,768,275 $4,018,046 $4,284,525
Total Connections 11,264 11,402 11,543 11,685 11,828 11,974 12,121 12,270
Table 4-1: CAW 100% Purchased Water Expense Projections
2025 2026 2027 2028 2029 2030 2031 2032
Projected Annual Total Water Pumped (MG) 922.8 935.2 947.9 960.7 973.6 986.8 1000.1 1013.6
Percent Purchased
11.87% 11.71% 11.55% 11.40% 11.25% 11.10% 10.95% 10.80%
(300,000 Gallons per Day)
Meter Charge (per Month) $1,867 $2,007 $2,158 $2,314 $2,430 $2,552 $2,679 $2,813
Development Fee (per Month) $1,790 $1,812 $1,834 $1,857 $1,880 $1,903 $1,926 $1,950
Watershed Protection Fee (per Month) $1,275 $1,274 $1,272 $1,271 $1,269 $1,268 $1,266 $1,265
Infrastructure Fee (per Month) $1,198 $1,594 $2,389 $3,976 $5,560 $5,951 $6,340 $6,729
Monthly Water Purchased $23,894 $25,723 $27,673 $29,746 $31,331 $32,915 $34,622 $36,451
Total Annual Fees and Water Purchased $360,298 $388,923 $423,918 $469,970 $509,641 $535,069 $562,002 $590,490
Total Connections 11,264 11,402 11,543 11,685 11,828 11,974 12,121 12,270
Table 4-2: CAW Current Purchase Agreement Water Expense Projections
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CABOT WATERWORKS
WATER RATE STUDY
4.2 Operation and Maintenance Expenses (O&M)
Purchased water is an O&M expense that is not projected using an annual percentage increase.
Similarly, the Public Safety expense recorded by Cabot Waterworks follows a different calculation
method, as it is based on 5% of all billed revenue from the prior year plus $35,000 for In-Lieu of City
Taxes, excluding non-rate revenue. A 4% annual increase is applied to all other O&M expenses.
4.3 General and Administrative Expenses (G&A)
Both the water and wastewater departments at Cabot Waterworks have their own general and
administrative (G&A) expenses. In addition, there is a set of G&A expenses shared between both
departments, which has historically been allocated using an 80/20 split.
Table 4-3 below displays the recorded shared expenses and their distribution between the water and
wastewater departments. All G&A expenses will be projected with a 4% annual increase. The bottom
of the table presents the forecasted shared expenses under this allocation.
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CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
2022 2023 2024
Shared G&A $808,796 $831,227 $970,623
Water (80%) $647,036 $665,282 $776,573
Wastewater (20%) $161,759 $164,946 $194,050
2025 2026 2027 2028 2029 2030 2031 2032
Shared G&A $1,009,448 $1,049,826 $1,091,819 $1,135,492 $1,180,911 $1,228,148 $1,277,274 $1,328,364
Water (80%) $807,558 $839,861 $873,455 $908,393 $944,729 $982,518 $1,021,819 $1,062,692
Wastewater $201,890 $209,965 $218,364 $227,098 $236,182 $245,630 $255,455 $265,673
(20%)
Table 4-3: Shared G&A Expenses
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CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
4.4 Forecasting Revenue v. Expenses
The model methodology outlined in Section 3, for billed revenue projections will be used to compare
forecasted revenue and expenses. Non-rate revenue will be projected with a 3% annual increase, and
this impact is reflected in the updated revenue projections.
• Table 4-4 presents the projected revenue and expenses if Cabot Waterworks transitions to
100% purchased water from CAW.
• Table 4-5 displays the projected revenue and expenses if Cabot Waterworks remains with the
current purchase agreement, continuing to purchase only 0.3 MGD of its total water use from
CAW. Unlike the 100% purchase scenario, O&M expenses will not decrease in this case, as
the costs associated with maintaining the existing groundwater infrastructure will persist.
The financial impact of transitioning to 100% purchased water from CAW versus maintaining the
current purchase agreement presents key differences:
• Transitioning to 100% purchased water significantly increases total expenses due to higher
purchased water volume, scheduled CAW rate increases, and additional fees such as the
Infrastructure Fee, Watershed Protection Fee, and Development Fee. As a result, a larger net
deficit is projected, particularly in 2026 when the full transition takes effect.
• Maintaining the current purchase agreement avoids the higher costs associated with 100%
purchased water by maintaining the existing groundwater system. While this scenario
reduces dependency on CAW’s rate structure, continued investment in infrastructure and
potential capital improvements may still be necessary.
While moving to fully purchased water simplifies operations, it comes at a higher financial cost.
Without rate adjustments, Cabot Waterworks will face growing deficits under both scenarios. Rising
costs for materials, fuel, and maintenance further strain financial stability. To account for inflation
and operational cost growth, a 4% annual increase has been applied to 2024’s recorded O&M
expenses outside of purchased water and public safety, as well as all general and administrative
(G&A) expenses. Public safety expenses will remain at 5% of water billed revenue plus $35,000 in
Lieu of City Taxes, while a 5% gross revenue allocation for repairs and refurbishments will also be
applied.
To maintain financial sustainability, a rate increase will be necessary to cover the rising cost of
purchased water. However, operating expenses, regulatory compliance, and infrastructure
investments are adequately funded under the current rate structure, provided there are no changes
to the purchase agreement with CAW.
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CABOT WATERWORKS
WATER RATE STUDY
2025 2026 2027 2028 2029 2030 2031 2032
1. Projected Billed Revenue (Modeled) $4,992,221 $5,057,393 $5,123,424 $5,190,322 $5,258,101 $5,326,772 $5,396,642 $5,467,431
2. Projected Non-Rate Revenue (*Table $561,202 $578,038 $595,379 $613,240 $631,638 $650,587 $670,104 $690,207
2-6) (Projected)
3. Total Revenue $5,553,422 $5,635,431 $5,718,804 $5,803,563 $5,889,740 $5,977,359 $6,066,746 $6,157,638
4. EXPENSES
5. O&M Expenses $1,808,803 $1,881,156 $1,956,402 $2,034,658 $2,116,044 $2,200,686 $2,288,713 $2,380,262
6. Purchased Water $360,298 $2,519,915 $2,804,695 $3,190,219 $3,534,268 $3,768,275 $4,018,046 $4,284,525
7. Public Safety $283,680 $284,611 $400,027 $422,378 $444,593 $464,995 $480,302 $496,148
8. Total O&M Expenses $2,452,782 $4,685,682 $5,161,124 $5,647,255 $6,094,905 $6,433,956 $6,787,061 $7,160,935
10. Water G&A Expenses $173,730 $182,938 $192,634 $202,844 $213,594 $224,915 $236,835 $249,387
11. Shared G&A (80/20) $807,558 $839,861 $873,455 $908,393 $944,729 $982,518 $1,021,819 $1,062,692
12. Total General and Administrative $981,289 $1,022,799 $1,066,089 $1,111,237 $1,158,323 $1,207,433 $1,258,654 $1,312,079
Expenses
14. Total Expenses $3,434,071 $5,708,481 $6,227,213 $6,758,491 $7,253,228 $7,641,389 $8,045,715 $8,473,014
15. Capital Improvements $787,633 $722,125 $1,198,407 $1,106,170 $1,016,550 $1,187,309 $1,352,701 $1,262,093
16. 5% Repair and Refurbish $277,671 $393,929 $417,147 $440,255 $461,577 $477,831 $494,653 $512,374
17. Net Revenue $1,054,048 ($1,189,103) ($2,123,963) ($2,501,353) ($2,841,615) ($3,329,170) ($3,826,323) ($4,089,843)
18. Long-Term Debt Service $958,224 $958,224 $454,708 $454,708 $454,708 $227,354 $0.00 $0.00
19. Net Revenue Required (Multiply Line 18 $1,054,047 $1,054,047 $500,179 $500,179 $500,179 $250,089 $0.00 $0.00
by 1.10)
20. Revenue Required (Line 14 + Line15 + $5,553,421 $7,878,581 $8,342,945 $8,805,095 $9,231,533 $9,556,618 $9,893,070 $10,247,481
Line16 + Line 19)
21. Shortfall/Excess Revenue After Debt $1.34 ($2,243,150) ($2,624,142) ($3,001,532) ($3,341,794) ($3,579,259) ($3,826,323) ($4,089,843)
Service (Subtract Line 3 from Line 20)
Table 4-4: Projected Water Revenue vs. Expenses (100% Caw Purchase)
August 21, 2025 l Page | 29
Serving Arkansas since 1938

[PAGE 32]
CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
2025 2026 2027 2028 2029 2030 2031 2032
1. Projected Billed Revenue $4,992,221 $5,057,393 $5,123,424 $5,190,322 $5,258,101 $5,326,772 $5,396,642 $5,467,431
(Modeled)
2. Projected Non-Rate Revenue $561,202 $578,038 $595,379 $613,240 $631,638 $650,587 $670,104 $690,207
(*Table 2-6) (Projected)
3. Total Revenue $5,553,422 $5,635,431 $5,718,804 $5,803,563 $5,889,740 $5,977,359 $6,066,746 $6,157,638
4. EXPENSES
5. O&M Expenses $1,808,803 $1,881,156 $1,956,402 $2,034,658 $2,116,044 $2,200,686 $2,288,713 $2,380,262
6. Purchased Water $360,298 $388,923 $423,918 $469,970 $509,641 $535,069 $562,002 $590,490
7. Public Safety $283,680 $284,611 $287,870 $291,171 $294,516 $297,905 $301,339 $304,832
8. Total O&M Expenses $2,452,782 $2,554,690 $2,668,189 $2,795,799 $2,920,201 $3,033,660 $3,152,054 $3,275,584
10. Water G&A Expenses $173,730 $182,938 $192,634 $202,844 $213,594 $224,915 $236,835 $249,387
11. Shared G&A (80/20) $807,558 $839,861 $873,455 $908,393 $944,729 $982,518 $1,021,819 $1,062,692
12. Total General and Administrative $981,289 $1,022,799 $1,066,089 $1,111,237 $1,158,323 $1,207,433 $1,258,654 $1,312,079
Expenses
14. Total Expenses $3,434,071 $3,577,488 $3,734,278 $3,907,036 $4,078,524 $4,241,093 $4,410,708 $4,587,663
15. Capital Improvements $787,633 $722,125 $1,198,407 $1,106,170 $1,016,550 $1,187,309 $1,352,701 $1,262,093
16. 5% Repair and Refurbish $277,671 $281,772 $285,940 $290,178 $294,487 $298,868 $303,337 $307,882
17. Net Revenue $1,054,048 $1,054,047 $500,179 $500,179 $500,179 $250,089 $0 $0
18. Long-Term Debt Service $958,224 $958,224 $454,708 $454,708 $454,708 $227,354 $0.00 $0.00
19. Net Revenue Required (Multiply $1,054,047 $1,054,047 $500,179 $500,179 $500,179 $250,089 $0.00 $0.00
Line 18 by 1.10)
20. Revenue Required (Line 14 + $5,553,421 $5,635,431 $5,718,804 $5,803,563 $5,889,740 $5,977,359 $6,066,746 $6,157,638
Line15 + Line16 + Line 19)
21. Shortfall/Excess Revenue After $1.34 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Debt Service (Subtract Line 3 from
Line 20)
Table 4-5: Projected Water Revenue vs. Expenses (Current CAW Purchase Agreement)
August 21, 2025 l Page | 30
Serving Arkansas since 1938

[PAGE 33]
CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
5 WATER RATE INCREASE
Rising costs across multiple areas—including purchased water expenses, operations, maintenance,
and infrastructure—necessitate a rate adjustment to maintain financial stability. This section
presents two rate results scenarios to address these increasing expenses:
• Section 5.1 outlines the unit rate increase per customer for 100% purchased water
agreement.
• Section 5.2 outlines a rate increase if Cabot Waterworks transitions to purchasing 100% of
its water from CAW.
• Section 5.3 details the rate results if the utility maintains its current purchase agreement with
CAW, continuing to produce most of its water while purchasing a smaller portion.
• Section 5.4 provides a comparative analysis of the resulting average customer bills.
Through the water model projection process, various rate structures can be evaluated to assess their
financial impact. When considering rate adjustments, factors such as the effect on different
customer groups and the need to cover rising expenses—particularly in purchased water, operations,
and maintenance—must be addressed.
One approach is adjusting the unit rate, ensuring revenue aligns with increasing costs tied to water
consumption. Alternatively, incorporating these expenses into the Service Flat Charge, similar to the
debt service fee, may not fully account for the variable nature of purchased water and operational
costs. Another option is implementing targeted fees to address specific cost drivers.
Ultimately, the selected rate adjustments must enable Cabot Waterworks to meet its financial
obligations while maintaining reliable service and infrastructure.
5.1 Unit Rate Increase CAW
Table 5-1 presents the annual unit rate (cost per 1,000 gallons) from CAW, which is added to all
existing unit rate thresholds. This rate increases each year as purchased water costs rise.
To determine the unit cost, the shortfall revenue due to purchased water (Identified in Table 4-4) is
divided by the projected billed water volume and converted to a per-1,000-gallon basis. This ensures
that the necessary rate adjustments are applied to each customer class and unit rate threshold.
August 21, 2025 l Page | 31
Serving Arkansas since 1938

[PAGE 34]
CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
2026 2027 2028 2029 2030 2031 2032
Projected Billed Water 768,453,114 778,845,291 789,378,006 800,053,161 810,872,681 821,838,519 832,952,653
Amount (gallons)
*(Table 3-3)
Shortfall in Revenue *(Table ($2,243,150) ($2,624,142) ($3,001,532) ($3,341,794) ($3,579,259) ($3,826,323) ($4,089,843)
4-4)
Unit Rate 100% Purchase $2.92 $3.37 $3.80 $4.18 $4.41 $4.66 $4.91
Water Agreement ($/1,000
gal.)
Table 5-1: CAW Unit Rate Increase
August 21, 2025 l Page | 32
Serving Arkansas since 1938

[PAGE 35]
CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
5.2 Water Rate Increase, 100% Purchased Water from CAW
Using the model to project the financial impact of rate changes within Cabot Waterworks' system, a
necessary rate increase can be identified and compared to expenses, capital improvements, and
debt service to ensure financial stability.
Currently, no immediate rate increase is required, as revenue is sufficient to cover existing expenses.
However, as a result of transitioning to 100% purchased water, the anticipated increase in purchased
water costs beginning in 2026 makes a rate increase necessary. Applying the unit rate cost calculated
in Table 5-1 to all customer classes and unit rate thresholds ensures that Cabot Waterworks can
meet its financial obligations.
Table 5-2 presents the projected rate increases over the study period, showing the financial impact
of the annual unit rate adjustments resulting from CAW’s purchased water cost increases. It also
compares projected revenue to projected expenses from Table 4-4 and illustrates the impact on an
average 5,000-gallon monthly bill for all customers. By 2032, the average bill is projected to increase
by 83% compared to current rates due to the pass-through of CAW’s rising purchased water fees.
August 21, 2025 l Page | 33
Serving Arkansas since 1938

[PAGE 36]
CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
Current (2025) 2026 2027 2028 2029 2030 2031 2032
Residential Inside City
Service Flat Charge $13.50 $13.50 $13.50 $13.50 $13.50 $13.50 $13.50 $13.50
Unit Rate 1 (Less than 5,000 gallons) (Cost/1,000 gallons) $3.20 $3.20 $3.20 $3.20 $3.20 $3.20 $3.20 $3.20
Unit Rate 2 (Over 5,000 gallons) (Cost/1,000 gallons) $4.20 $4.20 $4.20 $4.20 $4.20 $4.20 $4.20 $4.20
Residential Outside City
Service Flat Charge $16.50 $16.50 $16.50 $16.50 $16.50 $16.50 $16.50 $16.50
Unit Rate 1 (Less than 5,000 gallons) (Cost/1,000 gallons) $4.20 $4.20 $4.20 $4.20 $4.20 $4.20 $4.20 $4.20
Unit Rate 2 (Over 5,000 gallons) (Cost/1,000 gallons) $5.20 $5.20 $5.20 $5.20 $5.20 $5.20 $5.20 $5.20
Irrigation
Service Flat Charge $16.50 $16.50 $16.50 $16.50 $16.50 $16.50 $16.50 $16.50
Unit Rate 1 (Less than 5,000 gallons) (Cost/1,000 gallons) $4.20 $4.20 $4.20 $4.20 $4.20 $4.20 $4.20 $4.20
Unit Rate 2 (Over 5,000 gallons) (Cost/1,000 gallons) $5.20 $5.20 $5.20 $5.20 $5.20 $5.20 $5.20 $5.20
Commercial
Service Flat Charge $16.50 $16.50 $16.50 $16.50 $16.50 $16.50 $16.50 $16.50
Unit Rate 1 (Less than 5,000 gallons) (Cost/1,000 gallons) $4.20 $4.20 $4.20 $4.20 $4.20 $4.20 $4.20 $4.20
Unit Rate 2 (Over 5,000 gallons) (Cost/1,000 gallons) $5.20 $5.20 $5.20 $5.20 $5.20 $5.20 $5.20 $5.20
Multi-Unit Residential – Service Flat Rate $13.50 $13.50 $13.50 $13.50 $13.50 $13.50 $13.50 $13.50
Multi-Unit Commercial – Service Flat Rate $16.50 $16.50 $16.50 $16.50 $16.50 $16.50 $16.50 $16.50
CAW Unit Rate Applied on top of All Customer Class Unit
$0.00 $2.92 $3.37 $3.80 $4.18 $4.41 $4.66 $4.91
Rates Listed Above (Cost/1,000 gallons)
Average Residential Inside City Bill
$29.50 $44.10 $46.35 $48.51 $50.38 $51.57 $52.78 $54.05
(5,000 gallons) (CAW Rate Applied)
Average Residential Outside City, Irrigation, and Commercial
$37.50 $52.10 $54.35 $56.51 $58.38 $59.57 $60.78 $62.05
Bill (5,000 gallons) (CAW Rate Applied)
Projected Billed Revenue (Modeled) $4,992,221 $7,304,985 $7,748,322 $8,192,225 $8,598,038 $8,905,721 $9,223,447 $9,557,640
Projected Non-Rate Revenue $561,202 $578,038 $595,379 $613,240 $631,638 $650,587 $670,104 $690,207
Gross Projected Revenue $5,553,422 $7,883,023 $8,343,701 $8,805,465 $9,229,676 $9,556,308 $9,893,551 $10,247,848
O&M Expenses $1,808,803 $1,881,156 $1,956,402 $2,034,658 $2,116,044 $2,200,686 $2,288,713 $2,380,262
Purchased Water $360,298 $2,519,915 $2,804,695 $3,190,219 $3,534,268 $3,768,275 $4,018,046 $4,284,525
Public Safety $283,680 $284,611 $400,027 $422,378 $444,593 $464,995 $480,302 $496,148
Total O&M Expenses $2,452,782 $4,685,682 $5,161,124 $5,647,255 $6,094,905 $6,433,956 $6,787,061 $7,160,935
Total G&A Expenses $981,289 $1,022,799 $1,066,089 $1,111,237 $1,158,323 $1,207,433 $1,258,654 $1,312,079
Total Projected Expenses $3,434,071 $5,708,481 $6,227,213 $6,758,491 $7,253,228 $7,641,389 $8,045,715 $8,473,014
Projected Capital Improvements $787,633 $722,125 $1,198,407 $1,106,170 $1,016,550 $1,187,309 $1,352,701 $1,262,093
Repair and Refurbish (5% Gross Revenue) $277,671 $393,929 $417,147 $440,255 $461,577 $477,831 $494,653 $512,374
Net Revenue $1,054,048 $1,058,489 $500,934 $500,549 $498,321 $249,779 $482 $367
Debt Service $958,224 $958,224 $454,708 $454,708 $454,708 $227,354 $0.00 $0.00
Debt Service Coverage Ratio 1.10 1.10 1.10 1.10 1.10 1.10 N/A N/A
Table 5-2: Water Rate Increase (100% Purchased Water)
August 21, 2025 l Page | 34
Serving Arkansas since 1938

[PAGE 37]
CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
5.3 Water Rate Increase, Current Purchase Water Agreement with CAW
Maintaining the current purchase agreement is more cost-effective than transitioning to a 100%
purchased water agreement. Despite rising purchased water expenses under the current agreement,
Cabot Waterworks' existing rate structure remains sufficient to meet its financial obligations. This is
partly due to the reduction in annual debt service as bonds mature within the study period.
Table 5-3 below directly compares Table 5-2 but incorporates the projected expenses from Table 4-
5. Additionally, there is no pass-through unit rate increase from purchased water, and capital
improvements remain consistent with Table 5-2. This table applies the same model methodology to
illustrate the financial impact of maintaining the current purchase agreement and maintaining the
current water rates over the rate study timeframe.
August 21, 2025 l Page | 35
Serving Arkansas since 1938

[PAGE 38]
CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
Current (2025) 2026 2027 2028 2029 2030 2031 2032
Residential Inside City
Service Flat Charge $13.50 $13.50 $13.50 $13.50 $13.50 $13.50 $13.50 $13.50
Unit Rate 1 (Less than 5,000 gallons) (Cost/1,000 $3.20 $3.20 $3.20 $3.20 $3.20 $3.20 $3.20 $3.20
gallons)
Unit Rate 2 (Over 5,000 gallons) (Cost/1,000 gallons) $4.20 $4.20 $4.20 $4.20 $4.20 $4.20 $4.20 $4.20
Residential Outside City
Service Flat Charge $16.50 $16.50 $16.50 $16.50 $16.50 $16.50 $16.50 $16.50
Unit Rate 1 (Less than 5,000 gallons) (Cost/1,000 $4.20 $4.20 $4.20 $4.20 $4.20 $4.20 $4.20 $4.20
gallons)
Unit Rate 2 (Over 5,000 gallons) (Cost/1,000 gallons) $5.20 $5.20 $5.20 $5.20 $5.20 $5.20 $5.20 $5.20
Irrigation
Service Flat Charge $16.50 $16.50 $16.50 $16.50 $16.50 $16.50 $16.50 $16.50
Unit Rate 1 (Less than 5,000 gallons) (Cost/1,000 $4.20 $4.20 $4.20 $4.20 $4.20 $4.20 $4.20 $4.20
gallons)
Unit Rate 2 (Over 5,000 gallons) (Cost/1,000 gallons) $5.20 $5.20 $5.20 $5.20 $5.20 $5.20 $5.20 $5.20
Commercial
Service Flat Charge $16.50 $16.50 $16.50 $16.50 $16.50 $16.50 $16.50 $16.50
Unit Rate 1 (Less than 5,000 gallons) (Cost/1,000 $4.20 $4.20 $4.20 $4.20 $4.20 $4.20 $4.20 $4.20
gallons)
Unit Rate 2 (Over 5,000 gallons) (Cost/1,000 gallons) $5.20 $5.20 $5.20 $5.20 $5.20 $5.20 $5.20 $5.20
Multi-Unit Residential – Service Flat Rate $13.50 $13.50 $13.50 $13.50 $13.50 $13.50 $13.50 $13.50
Multi-Unit Commercial – Service Flat Rate $16.50 $16.50 $16.50 $16.50 $16.50 $16.50 $16.50 $16.50
CAW Unit Rate Applied on top of All Customer Class $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Unit Rates Listed Above (Cost/1,000 gallons)
Average Residential Inside City Bill $29.50 $29.50 $29.50 $29.50 $29.50 $29.50 $29.50 $29.50
(5,000 gallons)
Average Residential Outside City, Irrigation, and $37.50 $37.50 $37.50 $37.50 $37.50 $37.50 $37.50 $37.50
Commercial Bill (5,000 gallons) (CAW Rate Applied)
Projected Billed Revenue (Modeled) $4,992,221 $5,057,393 $5,123,424 $5,190,322 $5,258,101 $5,326,772 $5,396,642 $5,467,431
Projected Non-Rate Revenue $561,202 $578,038 $595,379 $613,240 $631,638 $650,587 $670,104 $690,207
Total Projected Revenue $5,553,422 $5,635,431 $5,718,804 $5,803,563 $5,889,740 $5,977,359 $6,066,746 $6,157,638
O&M Expenses $1,808,803 $1,881,156 $1,956,402 $2,034,658 $2,116,044 $2,200,686 $2,288,713 $2,380,262
Purchased Water $360,298 $388,923 $423,918 $469,970 $509,641 $535,069 $562,002 $590,490
Public Safety $283,680 $284,611 $287,870 $291,171 $294,516 $297,905 $301,339 $304,832
Total O&M Expenses $2,452,782 $2,554,690 $2,668,189 $2,795,799 $2,920,201 $3,033,660 $3,152,054 $3,275,584
Total G&A Expenses $981,289 $1,022,799 $1,066,089 $1,111,237 $1,158,323 $1,207,433 $1,258,654 $1,312,079
Total Projected Expenses $3,434,071 $3,577,488 $3,734,278 $3,907,036 $4,078,524 $4,241,093 $4,410,708 $4,587,663
Projected Capital Improvements $787,633 $722,125 $1,198,407 $1,106,170 $1,016,550 $1,187,309 $1,352,701 $1,262,093
Repair and Refurbish $277,671 $281,772 $285,940 $290,178 $294,487 $298,868 $303,337 $307,882
Net Revenue $1,054,048 $1,054,047 $500,179 $500,179 $500,179 $250,089 $0.00 $0.00
Debt Service $958,224 $958,224 $454,708 $454,708 $454,708 $227,354 $0.00 $0.00
Debt Service Coverage Ratio 1.10 1.10 1.10 1.10 1.10 1.10 N/A N/A
Table 5-3: Water Rate Results (CAW Current Purchase Water Agreement)
August 21, 2025 l Page | 36
Serving Arkansas since 1938

[PAGE 39]
CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
5.4 Rate Result Comparison
Table 5-4 compares the average residential bill for inside-city customers using 5,000 gallons per
month under the current purchase water agreement with CAW (300,000 gallons per day) versus a
potential 100% purchase water agreement, applying the CAW unit rate. This resulted in an 83%
increase in 2032 compared to the current rate structure.
Utility Bill Amount
Current 2026 2027 2028 2029 2030 2031 2032
(2025)
Cabot
Waterworks
$29.50 $44.10 $46.35 $48.51 $50.38 $51.57 $52.78 $54.05
(100% CAW
Purchase)
Cabot
Waterworks
(Current $29.50 $29.50 $29.50 $29.50 $29.50 $29.50 $29.50 $29.50
Purchase
Agreement)
Table 5-4: Average Bill (5,000 gallons per month) Comparison
6 CONCLUSION
Based on the projections above, an increase in Billed Revenue is necessary to meet the financial
obligations of both the Water and Wastewater systems. These increases are required to ensure
compliance with Act 605, cover rising operational and maintenance costs, fund critical capital
improvements, and address the transition to purchasing 100% of water from Central Arkansas Water
(CAW).
For the water system must address significant cost increases from higher purchased water rates and
associated fees under the agreement with CAW.
These rate adjustments are designed to align revenues with expenses, maintain reliable service, and
support the long-term sustainability of the Water system while continuing to meet the needs of Cabot
Waterworks’ customers and the community.
August 21, 2025 l Page | 37
Serving Arkansas since 1938

[PAGE 40]
CITY OF CABOT, ARKANSAS
CABOT WATERWORKS
WATER RATE STUDY
APPENDIX
August 21, 2025 l Page | 38
Serving Arkansas since 1938

[PAGE 41]
EXHIBIT B
MONTHLY WATER RATE CHART
Effective Dates
(a) All Water Customers 10/1/26 1/1/2027 1/1/2028 1/1/2029 1/1/2030 1/1/2031 1/1/2032
(b) Residential Inside City
Flat Charge * $13.50 $13.50 $13.50 $13.50 $13.50 $13.50 $13.50
(0) to (5,000) gallons ** $3.20 $3.20 $3.20 $3.20 $3.20 $3.20 $3.20
over (5,000) gallons ** $4.20 $4.20 $4.20 $4.20 $4.20 $4.20 $4.20
(c) Residential Outside City, Commercial, Irrigation
Flat Charge * $16.50 $16.50 $16.50 $16.50 $16.50 $16.50 $16.50
(0) to (5,000) gallons ** $4.20 $4.20 $4.20 $4.20 $4.20 $4.20 $4.20
over (5,000) gallons ** $5.20 $5.20 $5.20 $5.20 $5.20 $5.20 $5.20
(d) Purchased water cost to be added to all usage
Cost per 1000 gallons usage $2.92 $3.37 $3.80 $4.18 $4.41 $4.66 $4.91
* Minimum Monthly Charge.
** Cost for each 1000 gallons usage
8

[PAGE 42]
EXHIBIT C
FEE CHART
(a) CONNECTION CHARGES
Easy Set - 5/8 inch, 3/4 inch and 1 inch meter $ 225.00
An easy set includes the services of installing a water meter and
a meter box at an existing service location.
Easy Set - 1 ½ inch meter $ 605.00
An easy set includes the services of installing a water meter and
a meter box at an existing service location.
Easy Set - 2 inch meter $ 725.00
An easy set includes the services of installing a water meter and
a meter box at an existing service location.
Hard Set - 5/8 inch, 3/4 inch and 1 inch meter $1,500.00
A hard set includes the services of tapping the city water main.
Hard Set - 1 ½ & 2” inch meter $3,000.00
A hard set includes the services of tapping the city water main.
(b) HYDRANT METER CONNECTION FEE $ 100.00
(c) RE-CONNECTION FEE $ 25.00
This fee includes re-connection of Voluntarily Disconnected Meters.
(d) RE-CONNECTION FEE (After-Hours) $ 50.00
(e) RE-BILLING FEE (see Late Payment) $ 1.00
(f) CHECK SERVICE FEE (Insufficient Check) $ 20.00
(g) ORGANIZATION FEE $ 25.00
This fee covers the cost of each address for property owners and real estate agencies.
(h) INSPECTION FEE FOR IRRIGATION METERS $ 40.00
(i) STREET BORE FOR CONNECTION TO RESIDENCE (Base Charge) $ 600.00
(j) COST PER LINEAR FOOT FOR STREET BORE $ 16.00
(k) COST PER LINEAR FOOT FOR ROCK BORE $ 20.00
(l) COST PER SQUARE FOOT FOR STREET CUT REPAIRS $ 12.00
(m) STREET CUT FOR CONNECTION TO RESIDENCE (Base Charge) $ 600.00
(n) WASTEWATER CONNECTION FEE (RESIDENTIAL) $ 100.00
(o) WASTEWATER CONNECTION FEE (COMMERCIAL) $ 200.00
(p) WASTEWATER GRINDER PUMP FEE $ 300.00
(q) WASTEWATER TAP FEE (GRINDER PUMP or GRAVITY SEWER) $ 500.00
9
1726099-v1

[PAGE 43]
EXHIBIT D
DEPOSIT CHART*
Deposit for Water Accounts
Meter
Size Homeowner Renter Commercial Irrigation
5/8" $ 100.00 $ 105.00 $ 110.00 $ 115.00
3/4" $ 140.00 $ 145.00 $ 150.00 $ 155.00
1" $ 300.00 $ 345.00 $ 350.00 $ 355.00
1 1/2" $ 750.00 $ 750.00 $ 750.00 $ 755.00
2" $ 1,050.00 $ 1,050.00 $ 1,050.00 $ 1,050.00
3" $ 1,250.00 $ 1,250.00 $ 1,250.00 $ 1,250.00
4" $ 1,500.00 $ 1,500.00 $ 1,500.00 $ 1,500.00
6" $ 3,000.00 $ 3,000.00 $ 3,000.00 $ 3,000.00
Deposit for Wastewater Only
Meter
Size Homeowner Renter Commercial
5/8" $ 80.00 $ 80.00 $ 90.00
3/4" $ 110.00 $ 110.00 $ 120.00
1" $ 230.00 $ 260.00 $ 270.00
1 1/2" $ 375.00 $ 570.00 $ 570.00
2" $ 525.00 $ 790.00 $ 790.00
3" $ 625.00 $ 940.00 $ 940.00
4" $ 750.00 $ 1,130.00 $ 1,130.00
6" $ 1,500.00 $ 2,250.00 $ 2,250.00
* In accordance with Section 8. B., the deposit for any customer whose account has been
terminated due to non-payment shall be two-times the deposit required in Exhibit D.
10
1726099-v1

[PAGE 44]
Police & Fire Committee
Item #1
A Resolution Authorizing the Mayor and City
Clerk- Treasurer to Enter into an Agreement
with D5 Ranges for the Construction of a Police
Gun Range

[PAGE 45]
D5 Ranges, Inc
18000 Jefferson St.
Union, IL. 60180
815-506-1022
ATTN:Mr. Brian Boroughs
City Of Cabot
Via email: bboroughs@cabotar.gov
Indoor Gun Range
Cabot, AR
Qte. D5 1219277 R2
3/25/2026
QUOTATION
Part Number Description Qty Total
D5-Gran Trap Granulated rubber trap
50 yard indoor modular Gun Range Rough dimensions are 180' long / 30 feet wide / 12 feet tall - complete with double door access for
D5-Mod Structure-AR500S2
maintenance
3/8 AR500 tactical wall and baffle buildout complete with ballistic rubber tiles to accommodate 180 degree forward advancing drills.
D5BFP-AR500
For 25 yards only
D5- Mod -roofing TPO roofing / insulation to cover modular range complete with gutters and down spouts .
D5-HVAC HVAC system Heat and AC for modular range / recert system.
D5-Install Install by certified Technicians
D5-Carpentry Stick build front training room building, siding, windows,doors roof will be gable style.
Installation of the D5 products listed above to be performed by D5 Ranges experienced range installers. Product unload upon arrival by
Installation D5 and placed near intended range area with access for a HD forklift. D5 Ranges, Inc. respectfully requests access to the site from 7am
to 5pm, 7 days a week.
Freight FOB, From Union, IL. USA to Cabot, AR
Note All utility connections will be done at building by others
Add to the above
Qty
Total
D5 - Concrete Concrete slab for traing room area, range and hvac 6
D5 - Plumbing plumbing for bathroom area only 7
D5 - Electrical Electrical for compleate range
Indoor RangeProject Total $ 2 ,500,000.00
The following Terms and Conditions apply to this Quotation
1) Payment Terms -
50% Down- Remaining 50% will be paid out with progressive billing cycles invoiced on the 25th of each month net: 15 day terms / no retention
• Terms and Conditions apply to maximum orders of $5,000,000.00 and minimum orders of $10,000.00.
• If the site preparation is not complete when shipment is scheduled a maximum 30 day grace period will be allowed and the final payment will be due.
2) Taxes - Prices do not include tax.
• Any tax that is required to be collected or paid by D5 Ranges is considered Purchaser's responsibility.
• If Purchaser is exempt from such taxes, Purchaser agrees to provide an applicable exemption certificate.
3) Delivery Schedules
• 120 - 180 days ARO dependent upon size and complexity of the order and availability of raw materials.
4) Shipping
Non-GSA Quote Do Not Disclose wi D th 5 o u R t a p n r g io e r s w P r r i o tt p en ri e c t o a n r s y e n D t a f t r a om D5 Ranges, Inc. 1 of 2

[PAGE 46]
D5 Ranges, Inc
18000 Jefferson St.
Union, IL. 60180
815-506-1022
ATTN:Mr. Brian Boroughs
City Of Cabot
Via email: bboroughs@cabotar.gov
Indoor Gun Range
Cabot, AR
Qte. D5 1219277 R2
3/25/2026
QUOTATION
• Within the 48 contiguous States FOB point destination as quoted. Unloading and stagging into the project work site to be performed by D5 Ranges. Shipments outside this area shipping charges are
dependent on the ultimate destination and current market shipping price.
• Partial Shipments are permitted.
5) Acceptance
• Installed systems - upon passing the D5 Ranges acceptance test procedure the system shall be deemed "Accepted".
• Range equipment orders - "Acceptance" shall be FOB Destination for all CONUS orders and FOB Origin for all OCONUS orders, unless there is a government caused delay in the acceptance which will
make the acceptance FOB Origin.
6) Warranty- review warranty contract for full details
• D5 Ranges manufactured products - D5 Ranges guarantees all labor, material, and equipment furnished for the specified project against defects in materials and workmanship for a minimum period of one
(1) year’s from the Owner’s Final Acceptance, or as outlined in the project specifications, whichever period is greater. Should any defect develop during the warranty period due to improper materials,
workmanship, or arrangement, the same shall upon notice by the General Contractor or Owner, be made good by the undersigned at no expense to the Owner. This warranty excludes remedy for damage or
defect caused by abuse, alterations to the work not executed by D5 Ranges, Inc., improper or insufficient maintenance, improper operation or normal wear and tear under normal usage, and is only valid
upon receipt of final payment.
• Air handling and conditioning units and other 3rd party supplied equipment is covered under applicable manufacturer warranty only. No additional D5 Ranges warranty implied or written shall be applied
to 3rd party supplied equipment.
• Commercial component warranties are passed to the customer.
7) Post-delivery support
• Except as expressly set forth in this proposal or the warranty accompanying the system, D5 Ranges will not be obligated to furnish personnel or other on-site assistance for installation, maintenance, repair
or support. Any such services will be invoiced to Purchaser at D5 Ranges then-standard rates, which can be obtained on request.
8) Purchaser's Specifications
• D5 Ranges disclaims any responsibility for any damage, injury, loss, cost or other expense or liability, or the inoperability of the system, other products or site preparations purchased from D5 Ranges that
relates to or is caused by modification to the systems or other D5 Ranges products.
9) Room Modifications
• It is acknowledged that any and all room modifications and site preparations required to meet product installation requirements/specifications have been accounted for via field inspection of measurements
and conditions and confirmed by final design.
10) Entire Contract
• Acceptance by D5 Ranges of this proposal is expressly made conditional on Purchaser's consent to the terms and conditions set forth herein.
11) Final Agreement
• This writing is intended by the parties as a final, complete and exclusive expression of the terms of their agreement with respect to the transactions contemplated by this proposal and may not be
contradicted, explained or supplemented by evidence of any prior agreement or any oral agreement.
12) Release of Liability
• Customer agrees to release D5 Ranges and applicable manufacturer from all liabilities, causes of action claims and demands that arise in any way from any injury, death, loss, and/or harm, including
liability to others, that occurs to Customer or its property and arises from the use, misuse, ownership, possession, demonstration, testing, and/or operation of purchased items.
13) Indemnification
• Customer promises to indemnify, hold harmless, and defend D5 Ranges and applicable manufacturer against any and all claims noted in #12, including claims for the customers' own negligence.
14) Quote Validation
• This quote is valid for 60 days. Pricing and products will be revalidated upon expiration upon request of the Owner/Purchaser.
Respectfully Submitted by: _________________________________________ Date : 3/25/2026
Rich Lindner
Customer/Buyers Approval: _________________________________________ Date : __________
Non-GSA Quote Do Not Disclose wi D th 5 o u R t a p n r g io e r s w P r r i o tt p en ri e c t o a n r s y e n D t a f t r a om D5 Ranges, Inc. 2 of 2