Fifteen people spoke or wrote public comments at Monday’s Eureka Springs City Council meeting, and all but one was about the permanent Entertainment District at Pine Mountain Village, with 12 in favor and three against. Those in favor, including the majority of council, stressed that the district will bring much needed tourist revenue and spoke about how those with reservations should just accept the district.
Several aldermen pointed out that the ED will only last two years and could be revoked if things got out of control, with Autumn Slane and David Avanzino saying that loud noise is just a part of living in a tourist town and people should welcome it as it means revenue for the town.
Alderman Harry Meyer was the lone objector, saying that there is no data showing that entertainment districts bring in money and that allowing visitors to walk around an area with alcoholic beverages isn’t going to fix tourism issues. Alderman Susane Gruning said she understands concerns, but that tourism is a vital part of the city’s revenue and taxes, and assured that safeguards are in place. Council voted for the final times and passed the ordinance with only Meyer dissenting.
Infrastructure woes
Public Works Director Simon Wiley gave updates and answered questions about two sewer repairs had been made, saying the company that will be hauling sludge from the leaking basin had been contacted. He described how he had been suspicious of a leak after certain readings taken from Leatherwood Creek, but it was when he went on the local train ride that he saw for himself that the creek along Hwy. 23N was “pretty nasty looking” and discolored.
When further tests were run, it showed that the leak was possibly coming from the sludge tank, as the treated effluent was testing well but the actual creek had “disturbing” e. coli levels. He said in a way it was good news that the plant is still processing as it should, but bad news that the sludge basin is leaking and will have to be cleared, inspected, and possibly repaired.
Alderman Steve Holifield asked if an independent source, other than McClelland Engineering, could do an assessment to see if proposed work on sewer and water systems was necessary. Mayor Butch Berry responded that McClelland was a respected firm.
Holifield replied that he wasn’t implying McClelland were untrustworthy, only that there was a lot of work that had been proposed by McClelland that would cost the city a great deal. He said finding out if what citizens would be paying for was truly needed was the council’s duty.
Alderman Terry McClung agreed that there might be a way to check the work and the pricing. While Slane said she understood Holifield’s desire, she felt the urgency would not allow for such a review and council simply needed to work towards getting the plant and infrastructure repaired and improved.
Holifield asked if there might be a way, besides rate hikes, to pay for the work, finding a way to use tourism or grants so that it wouldn’t all be on citizens. Wiley explained that due to the rate study rule 605 for the state, the city must do a rate study and raise rates based on what the state determined the rates should be to be in compliance.
Berry explained that if the city were to refuse, the state can find the city to be in dysfunction, with Wiley saying that the state can choose the rate they deem fair, and it is better to keep the situation “in house.” Wiley described that although the city has 2,300 permanent citizens, it has a sewer system dealing with a population of up to 20,000 because of tourists, and for public health and safety, these problems need to be addressed, and the city will have to pay for it.
Ord. 2359 was read three times and passed unanimously amending a previous water rate ordinance that had specific wording that council could only raise rates three percent at a time. The new ordinance says that council can raise rates by any amount.
Avanzino asked again if there were alternatives to raising the rate to offset the cost using grants or something to help citizens. Slane mentioned that Susan Harman had been doing a study about using parking fees collected to pay for redoing sidewalks, and maybe those funds could also go towards sewer and water.
Berry said he had sent letters to Gov. Sanders and Sen. Boozman and was still waiting to hear back. He also said that although people complain that Eureka Springs currently has the highest rates in the area, this is not true, and Eureka Springs is actually low compared to others. He said Huntsville is doing a 100 percent rate hike.
Wiley said that he and McClelland could work on a study to show three alternative ways to raise rates in two weeks, and if council wanted to vote on the rate hikes at the next meeting it would give him time to get and present that information. The council read Ord. 2360, that raises rates, twice in anticipation on reading and passing it for the third time at the next meeting once they have all information on how to raise the rates.
Other items
- Meyer introduced three possible ordinances to receive reports from Parks, the fire department, and Public Works, and all three failed.
- Council then created Resolution 873 to support the City Advertising and Promotion Commission. Holifield said it was imperative to educate the public on the importance of the CAPC. The issue of dissolving the CAPC will be on the November ballot.
- An ordinance to vacate Dolores Avenue was read and passed.
- Ordinance 2361 was read and passed, amending the language of Ord. 2354 from July 2024 that described a property incorrectly. This was followed by the announcement of a CAPC budget workshop on Sept. 25 at 4 p.m. to be followed by a 6 p.m. regular meeting.