Little Rock Wastewater will be insolvent by mid-2012 unless the Sanitary Sewer Commission raises rates or cuts spending, according to a new financial plan presented to the commission last week.

The warning from finance director Jim Barnham said the sewer utility "will become insolvent by mid-year 2012 without one of the following: a rate increase, decrease in [operations and maintenance] expenses, or reduction in funding capital costs out of sewer revenues."

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