A public hearing on water rate increases was held during Monday’s Eureka Springs City Council meeting with Mayor Butch Berry inviting residents to share their views. Planning Commission Chair Ferguson Stewart blamed the Public Works Director and his crew, and claimed the rate study could reflect “false positives” and should be “kicked to the can.” Resident Tom Misch, a retiree living on a fixed income, pleaded with council to pursue other avenues saying he may have to relocate as rates increase.
Zane Lewis of McClelland Consulting Engineers gave a progress report on the wastewater treatment plant project. He announced they had just turned in construction permit documents to the Health Department and the Division of Environmental Quality (DEQ). Lewis called it a “milestone” that will help move the schedule along and include approval of funding from the state’s resource division.
Lewis said they were coordinating with DEQ over ultimate sludge disposal. He detailed the process saying, “Historically, we have been taking the sludge from the belt filter press, then to the compost facility. Then it gets composted with yard waste and eventually applied to fields.
“So, the capacity of that process is no longer adequate and DEQ is no longer allowing us to do that. There do not appear to be additional fields available. The issue with the fields is that they are nutrient surplus.
“We’ve used the fields long enough now that when we test the soil there’s too much phosphorus in the soil so the state doesn’t want us to put sludge on those same fields. Additionally, at the compost facility they wanted us to double the size of the compost shed (for onsite sludge storage). In the meantime, [Public Works Director Simon] Wiley and his staff have elected to work with a hauler, so the sludge is being trucked directly to the landfill in a permit compliance way.”
Lewis presented an application for grant funding to build the necessary additional sludge storage, and expansion of the belt filter press building. “There’s no guarantees here, but this feels like the best possible way that McClelland knows right now to try to get some free money for this additional work.”
A Project Planning List would need to be signed off on by the mayor by Wednesday, August 13, with other paperwork coming due within the following weeks, so they hoped to have it all signed at once. By moving forward with the grant application, Lewis said “DEQ sees that we are making a proactive effort to try to get this second phase moving.” Lewis said he and Wiley refer to these plans as phase one and two, one being focused on design and preparation, and two on construction and implementation. Council voted to authorize Berry’s signature, and documents were signed.
During discussion of Ordinance No. 2731, alderman Susane Gruning asked about alternatives to rate hikes. Wiley explained that some increases are required under Acts 605 and 925 to avoid the city being deemed “financially dysfunctional.” Act 605 regulates how water providers operate, and requires rates be determined by rate studies and be implemented within one year of the study. Act 925 requires much the same for wastewater and sewer retail providers.
In the meantime, Berry has formed a committee to evaluate alternatives for future rate increases and other revenue streams. Members of that committee include Terry McClung, Randy Wolfinbarger, Kolin Paulk, Dick Titus, Jim Nelson, Melinda Large, and Berry, along with Simon Wiley and city Finance Director Michael Akins.
Berry pointed out that an added sales tax, as was discussed in the previous meeting, “is not sustainable financing” because voters could repeal it at any election. Alderman Terry McClung said, “I want the general populous to know that we have to pay this bill, too. It’s no consolation, but it’s happening all over the state, we are not alone in this situation. Numerous towns and cities are having to go through this because they’re in the same boat. Things are old and inadequate and breaking apart and it’s the state ultimatum.”
Berry and Wiley noted that local rate increases remain on par with other Arkansas cities.
The ordinance passed its first reading. Alderman Rachael Moyer questioned whether increases should begin as early as September, suggesting more time for households to adjust their budgets. Council then moved the ordinance get a second reading at the next meeting.
Dealing with one of their own
Alderman David Avanzino gave a statement of disapproval and concern regarding recent alleged behavior of alderman Harry Meyer with Avanzino listing the incidents. “One, sending numerous text messages to the building inspector targeting a private citizen trying to leverage his position for local disputes. Two, shooting his own dog within city limits in violation of city ordinance [code] 7.24.010, which prohibits the use of firearms within city limits. Three, striking a neighbor with a personal vehicle during an altercation. This individual later addressed the council during public comment on this issue and is currently being handled by Arkansas State Police, which will likely be taken up by the prosecutor’s office. Four, engaging of intimidation of another neighbor including tampering with the property to gain parking access. This individual also spoke to council during public comment. Five, conduct connected to a private event at Lake Leatherwood, which is currently under investigation by the Arkansas State Police.”
Avanzino publicly requested Meyer’s resignation, noting that removal could only occur through a voter recall or voluntary resignation.
Berry asked council for comment, and after a moment of silence, Moyer voiced her agreement, “that the demonstrated behavior as stated… does erode the confidence of our citizens and council…” Gruning followed, stating the situation was “awkward,” giving Avanzino credit for coming forth with the issue. Alderman Steve Holifield expressed that as a former police officer, abuse of power was extremely concerning to him and setting an example was of utmost importance in positions of public service. McClung said he would wait for the results of ongoing investigations before forming a conclusion. He acknowledged the incident in which Meyer discharged a rifle to dispatch his dog within city limits, noting that such actions are “not uncommon in a rural area.”
Other Business
- A briefing on the mid-year budget review took place before the regular meeting.
- Berry asked council to decide on a time for a meeting with the hospital commission over budgeting. A meeting time was tentatively set for Friday, August 15 at 4 p.m.
- Holifield raised concerns about vacant homes and buildings, citing last week’s housefire and citizens’ fears over vagrants occupying empty structures. He pointed to the irony of so many unused properties amid a housing shortage. A vacancy tax was discussed, though the city attorney warned of legal complications. Meyer shared Yellville’s approach of buying, minimally renovating, and reselling for the price they put in, with buyers’ commitment to upkeep.
- Douglas Beard was appointed to Position 1 on the Cemetery Commission.
- Wiley reported that city water loss has dropped to 30% from 60% in 2022 when he started, praising his team’s efforts.
- An email written by Mark Hicks was read in praise of his recent visit to ESH.
- Appointments to the CAPC and the HDC were deferred.