Arkansas Code of 1987 (2023) › Title 25 - STATE GOVERNMENT (§§ 25-1-101 — 25-43-1605) › Chapter 20 - INTERLOCAL COOPERATION ACT (§§ 25-20-101 — 25-20-524) › Subchapter 5 - CONSOLIDATED WASTEWATER SYSTEMS (§§ 25-20-501 — 25-20-524) › Section 25-20-507 - Operation of consolidated wastewater system

(a)
"Consolidated wastewater system" means and includes a wastewater and collection system in its entirety, or any integral part thereof, including land, mains, interceptors, collector lines, manholes, force mains, valves, pumping stations, pumps, treatment and pretreatment plants and units thereof, as well as all other real and personal property, buildings, structures, or other improvements or facilities as may be necessary or advisable for the proper and efficient operation of the public body's facilities.
(b)
Unless the interlocal agreement provides otherwise, a public body under this subchapter shall have full authority to construct, own, manage, operate, finance, improve, extend, acquire, reconstruct, equip, sell, lease, contract concerning, deal in, dispose of, and maintain a consolidated wastewater system. The assets of the public body may be located inside and outside the jurisdictions of the public body's participating public agencies.
(c)
(1)
Unless the interlocal agreement provides otherwise, a public body under this subchapter shall have full authority to fix, charge, and collect and from time to time change the rates or charges for the use of and the service rendered by the consolidated wastewater system and other goods and services provided by the public body.
(2)
A public body shall have a reasonable time after its creation or after its expansion by the addition of a new participating public agency to equalize any differentials in sewer rates or charges among similarly situated classes of customers.
(3)
It shall be a complete defense to any suit or claim based on the charging of differential rates or charges for similarly situated classes of customers that:
(A)
Within one (1) year of the creation or expansion of the public body, an independent expert completes a study of rates or charges charged to customers that shows a differential in rates or charges among similarly situated classes of customers located within the jurisdictions of the participating public agencies, and the public body equalizes rates or charges among similarly situated classes of customers within ten (10) years of the date of the rate study; or
(B)
(i)
Within one (1) year of the creation or expansion of the public body, an independent expert completes an engineering study of the consolidated wastewater system infrastructure located within the jurisdiction or jurisdictions of the participating public agencies that identifies improvements needed to create a uniform infrastructure quality throughout the jurisdictions, rate differentials among otherwise similarly situated classes of customers are reasonably calculated to recover from customers located in the jurisdictions in which the improvements are made the costs incurred in making the improvements, and the public body equalizes rates or charges among similarly situated classes of customers within ten (10) years of the date of the engineering study.
(ii)
The inability of a public body to rely upon either safe harbor defense under subdivisions (c)(3)(A) and (c)(3)(B)(i) of this section shall not create any implication that the public body has failed to equalize any differentials in wastewater rates or charges among similarly situated classes of customers within a reasonable period of time after its creation or expansion.
(d)
If any rate or charge established is not paid within thirty (30) days after it is due, the amount of the rate or charge together with a penalty of ten percent (10%) and a reasonable attorney's fee may be:
(1)
Charged by the public body; and
(2)
Recovered by the public body in a suit filed in the circuit court where any part of the consolidated wastewater system is located.
Acts 2009, No. 1371, § 1.