Hot Springs Village POA Water and Sewer Rates: What Is Changing

On many Hot Springs Village lots, the sewer starts at a tank, a pump, an alarm and a control panel in the yard. Under the Property Owners Association's own policy, the homeowner owns all of it. In the Village, the same organization that sets your monthly assessment also runs your water, treats your wastewater, inspects your on-lot pump system and decides how utility rates change. Right now the utility side is rising faster than the assessment.

The equipment in the yard comes with the deed

The POA's policy manual, as approved in August 2026, covers what it calls the "privately owned residential wastewater collection system." That's the pumping setup that sends a home's wastewater to the POA sewer line in the road. The POA's own fee schedule calls the equipment a Simplex grinder tank, pump, discharge line and panel.

The POA policy manual splits responsibility like this:

The policy also suggests asking a licensed plumber about adding a sewer popper cleanout on the line between the house and the on-lot system. That's the one stretch of pipe the POA never takes on.

Where the house sits in that warranty timeline matters more here than in most places. At the Cedar Creek groundbreaking, POA General Manager Ken Unger said 125 to 250 new homes are built inside the gates each year, according to the Hot Springs Village Voice. On a home that's a year or two old, the pump may still be the owner's to fix. On a home that's ten years old, the POA handles repairs out to the right-of-way. The house-side line stays with the owner either way.

One organization, two kinds of charges, moving at different speeds

Buyers comparing the Village to other places usually ask about the assessment. The POA's published schedules show it's the slowest-moving of the major recurring charges.

2025 figures are from the POA's 2025 fee schedule as published by the Hot Springs Village Voice in December 2024. 2026 figures are from the POA's 2026 fee schedule. The assessment figures appear near the top of that same document.

Add the assessment, water base and wastewater base together. That combined fixed charge went from $181.44 a month in 2025 to $188.89 in 2026, an increase of $7.45. The assessment is the largest of the three, but it accounts for only $2.60 of the increase. The two utility base rates account for $4.85, about two-thirds of it.

On the commercial side the gap is wider. Commercial wastewater went from a $31.50 monthly base in 2025 to $55.15 in 2026. That doesn't land directly on a homeowner's bill. It does show the utility being repriced across every customer class.

Why the utility side moves faster

In July 2026 the POA board approved a $38.9 million upgrade at the Cedar Creek Wastewater Plant, according to the Hot Springs Village Voice. The plan is to treat all of the Village's wastewater at the Cedar Creek site below Balboa Dam. The Voice reported that Crist Engineers recommended combining the Village's two plants into one, which Unger described as "the most economical path." Earlier this year, crews laid an 18-inch force main along Saline County's Danville Road near the Danville Gate. It will carry wastewater from the Cortez Lift Station to Cedar Creek.

On financing, the POA put $7 million toward the project in its 2026 budget and expected to issue bonds for $34 million or less. It's pursuing long-term, tax-exempt bonds. Unger told the Voice he hopes to offer them to POA members before the general public. As of the October 6 Voice report on the September 30 groundbreaking, no date for that member offering had been confirmed.

The state law matters too. The Voice tied the POA's gradual rate increases to Arkansas Act 605 of 2021, which oversees retail water and sewer providers. The Arkansas Department of Agriculture's guidance on the act sets out the rules a utility like this works under:

• A rate study is required at least every five years, and before any "major development project." That means a project costing more than 20% of the provider's gross revenue from the prior fiscal year.
• Rates the study determines must take effect within one year, or within two years if the recommended increase is 50% or more.
• Rate changes should aim for debt-service coverage of at least 1.1. In plain terms, utility revenue needs to exceed the yearly debt payments by a margin.
• Failing to get a study, failing to implement its rates, or letting coverage fall below 1.05 can trigger a fiscal-distress designation.

So the bonds and the rates are connected. The POA told the Voice that a recent utility rate study found the project can be paid for from utility revenue "with moderate rate adjustments over time." For an owner, that means sewer costs from Cedar Creek reach the household through the utility bill, a little each year. They don't show up as a one-time special assessment.

The plant is also expected to cut costs eventually. Biological treatment replaces today's chemical treatment, and the July Voice story put the POA's estimated savings at $800,000 a year in 2026 dollars. At the groundbreaking, Unger described the savings as up to $800,000. The two Voice reports give different dates for when that starts. The July story said the plant was expected to be operational in early 2029. The October groundbreaking story said completion is anticipated in 2028. Either way, the bond costs arrive before the savings do.

The monthly floor before anyone turns on a tap

Here's what the 2026 schedule implies for an occupied, improved home with curbside trash pickup, before any water use beyond the 2,500 gallons in the base rate:

1. Improved-lot assessment: $115.79
2. Wastewater base rate: $50.85
3. Water base rate: $22.25
4. Residential sanitation, curbside: $20.00
5. Ambulance fee, $105 a year billed bi-monthly: about $8.75
6. Street light fee, $42 a year billed bi-monthly: $3.50

That comes to about $221 a month in POA-billed charges. The schedule also lists a $250 refundable utility deposit and a $50 bi-monthly billing minimum for seasonal residents. For a second-home buyer, that minimum is the utility cost of owning a house that sits empty part of the year.

Where 2027 stands as of mid-October

The 2027 numbers aren't set yet. At its September 9 meeting, the POA board discussed a proposed 2027 fee schedule covering assessments, amenities and other fees, to be folded into the 2027 operating budget, according to the Hot Springs Village Voice. That report gave no proposed amounts.

The same meeting showed how closely the utility and the association are tied together. The POA's collections supervisor asked to add water shutoff as a remedy for eligible improved properties that fall behind on dues and assessments. As reported, that was a request, not an adopted policy. It's a possibility only because the organization billing the dues also runs the water meter.

A few quick answers

Does the Cedar Creek project mean a special assessment? None has been reported. The POA has described financing through bonds paid from utility revenue, with moderate rate adjustments over time.

Who fixes a failed grinder pump? It depends on the home's age and which part failed. On a new home, the owner is responsible for the pump for three years after the certificate of occupancy. After the warranty period, the POA handles repairs from the on-lot system to the right-of-way. The line from the house to the tank stays with the owner.

When will the 2027 rates be known? Once the board adopts the 2027 fee schedule and operating budget. As of this writing, no adoption has been reported.

This post is general information about how the POA's published policies and fees work. It isn't legal, tax or financial advice, so please check the specifics of any property with the POA and the right professional.

If you're looking at homes inside the gates, we're happy to help you work out the full monthly cost of a specific house, including its water, sewer and pump setup, before you write an offer. Reach out to Lindsey Blaylock to schedule a free consultation.