Eureka Springs city council approved all three readings and an emergency clause of Ordinance 2255 which will increase sewer rates by 21 percent and add an Infrastructure and Improvements (I&I) fee to all utility bills. The new rates will be reflected on the June 1 billing cycle.
Mayor Butch Berry again explained the purpose of the increase is to meet the bond covenant, which stipulates the city should recoup 123 percent of operational costs of water and sewer systems. He said at a public hearing in March the city faced a shortfall of the cost of sewer operations of $166,804 in 2016. Section 3 of Ord. 2255 states, “It is the Council’s intent to retire both sets of outstanding bonds in a quick and legal manner including, if possible, the use of the funds made available by the retirement of the first bonds now due by December 1, 2020 to increase payment and calling of the second set of bonds now due to be satisfied by December 1, 2027.”
Ordinance 2255 sets the monthly I&I charge at $5 for customers who use up to 2000 gallons, or any portion thereof at $5. For the next 8000 gallons, I&I will be $10, and for 10,000 gallons or more, I&I will be $50. Water rates will not change.
Finance Director Lonnie Clark stated the city would track expenses related to the revenue from the increase to make sure it’s used as the ordinance stipulates. He speculated that at some point the city would be able to start paying back the general fund.
Alderman Peg Adamson commented she was sorry the city had to increase sewer rates but understood the need. She also wanted to council to consider at some point reevaluating the rate structure in light what some citizens have said.
Berry pointed out many other municipalities have similar rate structures, and being a seasonal town depending on tourists makes a difference in managing the rates.
Alderman Terry McClung moved to assign the ordinance a number and put it on its first reading. Alderman Mickey Schneider remarked, “The sooner the better; it’s going to happen anyway,” and City Attorney Tim Weaver said the revenue would mean sewer operation would pay for itself and the city would not need to borrow from reserves.
Vote to put the ordinance on its first reading and vote to approve were both 6-0, and the same for the second reading. The vote to put it on its third reading was 5-1, Adamson voting No, but the vote to approve the third reading was 6-0. Vote to read and approve the emergency clause was 5-1, Adamson voting No.
Accessibility still a handicap
LauraJo Smole told council it had been 90 days since she addressed them regarding the lack of accommodations for persons with disabilities to have access to city meetings. She said the city holds its meetings in inhospitable locations and there is supposed to be a designated person responsible for grievances procedures, but she has not been able to find out who that is. She also has not been able to find a self-evaluation report the city is supposed to prepare regarding compliance with the Americans with Disabilities Act.
Smole said she has seen no action regarding her previous address to council and no reasons stated for continued noncompliance. She requested a letter explaining the reasons for no progress. She also asked the city to set up a task force on improving access for persons with disabilities.
Settlement
Council passed Resolution 709, which authorized Berry to finalize settlement of Morris vs. City of Eureka Springs by the “transfer of funds in the amount of $45,000 to the plaintiff and plaintiff’s attorneys for full and final settlement of all claims.”
Public comment
Lee Lujan told council, “The Music Park looks like hell. It’s a disgrace.” He said no one maintains the park on North Main, the Music Garden there is a failure and the stage has been used maybe twice. He suggested the entire space would serve the city better as a parking lot for as many as 25 additional spaces.
Next meeting will be Monday, May 8, at 6 p.m.