Council squabbles over housing authority

Eureka Springs City Council met on Monday, Oct. 12 for a regular meeting that addressed issues surrounding low-income populations, housing, and a pending lawsuit.

 Kacy Alley, with the Arkansas Municipal League, gave an update on a pending court case and shared her recommendations. Mayor Butch Berry cautioned council to be careful with their words because they could potentially be used against them should the case go to court.

            Alley stated that the city and the Director of Public Works were sued a few months ago by Big M Ranch, a directional drilling company based out of Rogers that did some work in Eureka Springs in 2024. “When they were here, they purchased bulk water. They thought that our bulk water rates were too high. That’s the essence of the lawsuit,” Alley said.

            Big M Ranch argues that the city’s bulk water rate, “which are set by ordinance as four times the regular rate,” is unconstitutionally high, bringing claims under the Arkansas Civil Rights Act for violations in the state constitution and under the Equal Protection Provision of the Federal Constitution, and are requesting the city to go to mediation, asking $164,000 to cover the cost of buying water elsewhere and transporting it here.

            Alderman Terry McClung asked whether the company agreed to the price prior to the work they did. It was stated by Alley that they’d likely agreed, based on the city’s history doing business with them; and the fact that they paid for it at the time the work was done. Alderman David Avanzino made a motion to deny their request for settlement for the time being. Alderman Harry Meyer seconded.

Housing Authority

            Berry asked city legal counsel Heather Owens to open by summarizing the memo she composed and sent to council. “Basically, state law establishes a housing authority for all Arkansas municipalities,” Owens said.

             She explained that the act of establishing the housing authority is quite simple; council would only need to pass the resolution before them. Before doing so however, Owens said there were questions to consider.

At the time of the passing of the resolution, the statute requires the city to fund the first year of the housing authority. “I don’t know what your budget looks like, or where those funds will come from, but before we do this, I think we need to look at that budget, estimate how much the housing authority is going to cost in its first year so we can appropriate the necessary amount of money to satisfy statutory requirements.”

Avanzino responded, “This is just about establishing the need and having that commission go on an exploratory mission to find out what to do.”

Owens explained that once the authority is established, it is a separate legal entity apart from the city. “You can’t tell it what to do, you can’t tell it how to spend money,” she said. The city can only give it a budget.

Avanzino said they could estimate that it would cost the authority zero dollars to explore the options. Alderman Terry McClung reminded him that it could be difficult to find qualified volunteers and said the document the legal counsel had provided was quite specific and that they lacked the necessary information to pass the resolution that evening anyway.

Avanzino said he “completely disagreed,” suggesting that council was delaying action. Owens explained that guidelines needed to be established before activating the housing authority; answers to questions like: What budget is needed? How many commissioners? Is there anyone willing to serve? She said that many housing authorities have an executive director on salary and administrative costs.

Avanzino agreed to begin with a committee and work towards a housing authority. McClung motioned to authorize the mayor to establish a committee to explore housing and the initiation of an authority. Alderman Steve Holifield seconded. Berry asked anyone interested in sitting on the committee to contact the mayor’s office.

Holifield motioned to discuss the city’s emergency water fund, asking why it was not being used considering the many complaints citizens about high water bills. City Finance Director Michael Akins, who initiated the program last year, explained the city had received only two applications, and that those applicants were “basically tired of paying their water bill” – not what the program was intended for. He said the applications ask for income information along with detailed questions about the circumstances of the request – but that the program was built to be accessible and supportive – not to send people jumping through hoops. A motion was made to continue the program into next year.

Other Business

• Aldermen discussed hiring a qualified social worker or victim-services counselor to assist with mental health crises, domestic violence, and other situations involving vulnerable residents; a subject raised by Meyer. Holifield spoke to his 20 years working in victim services in Austin, Texas, and what a difference it made long-term – allowing police officers to return to other duties more quickly. Holifield emphasized that cooperation among the police department was key. Also noted was the need to identify appropriate qualifications, develop a job description, and determine how the position would be funded. Aldermen voted to defer the discussion until Police Chief Billy Floyd was present to weigh in.
• Resident Jim Smith requested again to have public comments moved to the end of the meetings and that citizens in attendance be provided with the same packets as council so they can follow along. He also expressed support for the proposed resolutions on the agenda; to hire a city social worker and establish a public housing authority.

“I think apathy has taken hold of civil engagement across the United States,” Smith said. “And I don’t think Eureka needs to jump on that bandwagon, I think we should be different. I think the apathy is because people don’t think they’re heard. You have a suggestion, you come up here, you talk about it, and you never hear about it again. I’m saying the perception is, you’re not listening.”

• Council continued the review of the proposed Queen Anne purchase. Questions were raised about zoning, legal protections, closing costs, property boundaries, and safe bicycle access. Aldermen voted unanimously to defer until a revised contract can be reviewed.
• Year-to-date reports were provided in council packets for Hospital and Parks Commissions.
• Minutes were approved for Sept. 28.
• Vacancies exist on Planning, CAPC, and Cemetery Commissions.