The exact time it will take effect has not yet been determined but water rates for those on the Jonesboro Water System will be increasing. This is due to a mandate handed down by the Louisiana Rural Water Association.  

“We have known for months that this was coming,” said Jonesboro Mayor James “Spike” Harris. “We proposed several scenarios to the LRWA that would not affect the current rates we have in place at present, but none were accepted, so now we have no choice other than to comply with their demands.”

What would be the recourse if the rates aren’t increased? 

“We stand the chance to lose the grant money that has been appropriated to the town (1.5 million dollars) to help us get our system back to where it needs to be and certainly would affect any future assistance that possibly could be provided by the LRWA,” explained Harris. “We simply can’t afford to have that happen.”

For a little background on how dire the situation is, since 2009 the Town of Jonesboro has been losing an average of 1.3 million dollars a year in revenue that should have been generated by the water system. That tabulates to 19.5 million dollars over that time frame. 

The reason for the loss is mainly due to the fact that the town has not been able to tabulate actual consumption for close to 15 years. This is because the electronic meter reading system that was installed at that time became inoperable, forcing an estimated fixed rate to be put into place.

“There has been only one rate increase since 2102 when the the flat rate increased from $12.00 to $16.00 per month for residents,” said Harris. “The rate currently being charged nowhere near brings in the funds that should be generated.”

Over the last 8 years, the LRWA has assisted the Town of Jonesboro but after the most recent study that was conducted, it was determined that no further aid would be granted unless there was an immediate remedy to the problem put in place. 

“We were basically told that they (LRWA) has been carrying us but it is now time for us to stand on our own two feet,” concluded Harris. 

As result the Town of Jonesboro investigated what it would cost to purchase new water meters and get them in operation so that actual water consumption rates could be tabulated. The total amount came to roughly 1.5 million dollars which the town was granted by the state of Louisiana Appropriations Committee.

“We really owe a great debt of gratitude to Representative Jack McFarland, who is Chairman of the State Appropriations Committee,” said Harris. “He really stepped up for our community so that we could get moving in the right direction.” 

Recent meetings with town officials and the LRWA has resulted in two options being devised in order to comply with the demands handed down. Both show the flat rate for water consumption currently being paid by residents rising roughly $20.00 – $30.00 per month which will stay in place until the actual cost of water usage by location can be measured.

“According to the information we have received, we expect to continue to charge a flat rate until the first couple of months in 2026,” said Harris. “That is how long it is going to take to get the meters installed, in working operation and allow for a required water rate study that will last 6-9 months.” 

Scenarios Proposed by the LRWA

Scenario 1

The Town of Jonesboro moves $260,000.00 out of the General Fund and put it in a fund designated solely for the water system. This money would come from funds the town received in from the federally provided American Rescue Plan Act (ARPA) in 2022. The additional amount of money required would come from an increased flat rate being paid by customers of the Jonesboro Water System as shown on the table below until actual cost of water usage can be measured. 

Scenario 2

The Town of Jonesboro DOES NOT move $260,000.00 out of the General Fund and put it in a fund designated solely for the water system.