BATESVILLE, Ark. — As Batesville grapples with community concerns over its poultry plants, a city council meeting shed light on the city’s water rate structure, particularly how it applies to major industrial users like Ozark Mountain Poultry (OMP, now owned by George’s Inc.) and Peco Foods Inc. Mayor Rick Elumbaugh clarified misconceptions, emphasizing that the city does not provide water to the plants for free, despite their significant usage.
Public Works Engineer Damon Johnson explained that all Batesville water customers are charged a uniform base rate for the first 1,000 gallons, determined by meter size. Residential users, with smaller meters, pay $13.30 monthly (excluding sewer, trash, and taxes), while the poultry plants, each equipped with an 8-inch meter, face a base charge of $2,126.10. Rates decrease with higher usage, a structure Johnson noted is common in cities with food processing industries, like Springdale, to incentivize growth. Only OMP and Peco reach the 2-million-gallon monthly threshold to qualify for this volume discount, far surpassing even the local hospital’s usage.
“This rate system has been in place for 30 or 40 years, likely designed to encourage companies to expand and stay here,” Johnson said. He stressed fairness, noting there are no special rates for any customer—everyone pays based on volume used. However, Alderman Scott Fredricks raised concerns about conservation, suggesting the structure might reward higher usage. Johnson countered that poultry plants are mandated to use a minimum amount of water per bird processed, limiting their ability to conserve.
Changing the rate structure would require a new rate study, which Johnson estimated could cost between $100,000 and $150,000, following a recent study completed a year or two ago. Alderman Landon Reeves inquired about oversight, to which Johnson explained that Arkansas’s Act 605 ensures utilities maintain rates high enough to cover operational issues, but the state doesn’t set rates directly.
Johnson underscored the economic stakes, warning that overly aggressive changes could risk driving the plants away, with “serious consequences” for the city’s water utility. The city recently broke ground on a $25 million water treatment plant to replace aging 1960s infrastructure, a project that relies on the plants’ continued presence. For now, Batesville aims to balance industrial support with fiscal responsibility, as the council weighs the broader implications of its water rate policies.
