A proposed water rate increase was also a point of contention at Monday’s city council meeting, with Public Comments speakers on the matter all opposed.
Rate increases became a topic recently due to rate increases by Carroll Boone Water District, where the city purchases water, in 2021 and 2022 and another increase coming at the end of 2023. The city did not increase rates during previous price hikes.
City Finance Director Michael Akins presented a water rate analysis, showing various levels of water utility bills including residential, small and large restaurant, and small and large hotel. Akins explained that a water bill consists of multiple fees such as the water rate, an I&I fee that deals with infrastructure improvements, a sanitation fee and others and that only the water rate portion of the bill would be going up. The bill examples he gave were under a theoretical 25 percent water rate increase.
- Residential bill – From $59.26 to $63.97
- Small Restaurant – From $505.22 to $543.80
- Large Restaurant – From $1,062.94 to $1,159.98
- Small Hotel – From $2,393.88 to $2,645
- Large Hotel – From $7,411.15 to $8,222.77
Akins said the analysis from University of North Carolina made some assumptions about the city’s water billing he did not agree with, including that as water usage went up, the amount per gallon went down. The rate increase analysis given by Akins made water usage/cost the same across the board.
Aldermen voiced the same concern the public did with the amount of water being lost due to leaks within the city. Akins said that water loss in the city is around the 55 percent mark and that many cities like Eureka Springs run a water loss rate around 40 – 50 percent. He explained that the city is looking at financing options to pay for leak detection and repair.
Alderman Terry McClung said that it was important the city acted aggressively to remedy leaks and alderman Autumn Slane agreed. Discussion about the water rate increase is planned for the next several meetings, and council agreed to have the city attorney draft an ordinance for a 25 percent rate increase.
Other Items
- Council agreed to defer a decision on whether to vacate a portion of Maine Avenue (not Main St.) and Fuller St. Comments during the Public Hearing were against the vacation out of concern it would cut off access to properties. The vacation would not affect utility easements that run along Breezy Point, which the vacation would meet, and the street portions being vacated are currently a drainage way. Council will perform a site visit to determine whether the vacation would cut off access to a portion of 17 Breezy Point.
- Council approved unanimously to spend $9,500.49 for the city’s portion of a TAP grant to pay for the new sidewalk going along US 62.
- Resolution 843 establishes a public hearing on July 10 for vacating an alley between Lots 5 and 2 of the Riley and Armstrong survey.
- City Clerk Ida Meyer and Michael Akins presented a CivicPlus proposal to create a new website for the city.