Council given breakdown of increasing water rates

At the May 22 city council meeting Public Works Director Simon Wiley explained the need to raise water and sewer rates in the city.

Wiley said he has been working with the University of North Carolina to explore options of rate increases. The increases are due to water rates from Carroll-Boone Water District going up in January 2024, and a need for the city to follow Arkansas Act 605 to conduct a water rate study every five years and implement those rates within one year of each study’s completion.

Wiley said that with the budget of around $1,094,000, the water department is $200,000 over budget so far this year. He explained that if rates were raised around 25 percent across the board, that department would be left with a $4,500 surplus. “That’s not a lot of money in my world,” he said. He added that the pipe to repair a line that recently broke above Main Street cost $11,000, and if more similar repairs were needed the water department would be operating in the red once more.

For the first 2000 gallons. the rate would increase from $11.50 per 1,000 gallons to $14.38. From 2001 to 8000 gallons the increase would be from $4.49 per 1000 gallons to $5.74, and anything above 8001 gallons would increase $6.09 per 1000 gallons to $7.55.

In another option he presented the idea to increase commercial water rates by about 35 percent in order to lower the amount residential rates would increase. That increase would make the first two thousand gallons $15.53 per 1,000 gallons, 2001 – 8000 gallons to 6.20 per 1,000 gallons, and above 8,001 gallons to $8.15. Mayor Butch Berry told aldermen that the various ways Wiley had broken down rate increases would be given to them for later discussion.

In talking sewer rates, Wiley said that if there were a five percent increase, the projected surplus of that division would equal $45,000, and at 10 percent it would be an $80,000 surplus. He said that the latter would be where Public Works needs to save for capital expenditures on water and sewer in the future.

Aldermen discussed the pros and cons of commercial properties taking on the bulk of rate increases, with Harry Meyer insisting that commercial pay more and that locals “should not have to subsidize tourism.” Alderman David Avanzino disagreed saying that businesses already pay high taxes to the city and that any increases needed to be “even across the board.”

ADA compliance requested

In public comments, resident Jane Stephens spoke of the need for compliance in the city to the American Disabilities Act. She told council it’s a civil rights violation to not comply and that no entity or business is exempt from “this mandate for any reason.”

She mentioned that there are six handicapped parking spaces in town with two on Mountain Street, as well as no handicapped restrooms. During her comments she recalled two times she’s seen people pee themselves in town due to no public bathroom accessibility. She referenced historic sites and businesses in Ouray, Colorado, that have been made ADA compliant without destroying historic integrity. She said “either we take some initiative and make progress” or the Department of Justice may force compliance in the city.

In other public comments, resident Timothy Anton requested the city not increase water rates saying that rate increases would make it impossible for him to pay the already high cost of living in Eureka Springs. Resident Ferguson Stewart also raised concern for a rate increase saying it may be the “nail [in the coffin]” for those with fixed income in the city, especially if a recession comes.

Other Items

• 2340 to vacate a portion of Inman Street between Block 12 and 13 lots 1 and 2 passed three readings with emergency clause.
• Resolution 841 to allow the city to utilize federal Transportation Alternative Program funds passed unanimously. This allows the city to use those funds for the construction of the sidewalk along US 62.
• 2341 to amend rules for the Board of Appeal from actions of the building inspector passed unanimously. Originally the rules required members of the board to reside in Eureka Springs and have qualifications such as being structural and electrical engineers. Due to the city’s small size, the rules are too restrictive and the ordinance will allow members to live outside city limits and they must be part of the building trades to serve.