If you get a letter from the Northwest Arkansas Economic Development (NWAEDD) District, don’t throw it in the recycle bin. It is important that you answer it if you want to city to have a shot at continuing to have access to federal Community Development Block Grants (CDBG) for infrastructure such as water, sewer and sidewalks, Eureka Springs Mayor Butch Berry said.
Berry said the city suspects that the recent U.S. Census over-estimated the average income of local residents. That could be because of pandemic restrictions when information was being gathered for the census or people with low and moderate incomes not receiving or not answering census questionnaires. Previously, the city has been considered to be a low moderate income (LMI) area that made it eligible for CDBG funds.
“I was very disappointed when the new census showed our LMI was over the limit and we were no longer eligible,” Berry said. “Berryville and Fayetteville get it. But according to the census, a majority of people in Eureka Springs make more money than the maximum required to be a LMI, which is less than $32,250 for one person or less than $40,250 for two people. Now, all the sudden, we are cut out of all that CDBG money which can go not just to water and sewer, but sidewalks and other infrastructure we so desperately need in the city.”
Berry said these grants have been a blessing in the past. One repaired the collapsed tunnel at Flint, Main and Steel Sts. that caused the street to cave in. By contrast, CDBG funding was available for the tunnel collapse by the auditorium and courthouse. However, the county helped with that $300,000 project.
CDBGs provided about $350,000 to replace the water line to the sewage treatment plant on Hwy. 23 North. Berry said those repairs will save water and sewer customers money.
“We don’t get a discount for our water bill at all,” Berry said. “It is thousands of dollars a month. When we have a water leak, we have to pay for it just like an average citizen. We knew there were leaks down there near the sewer plant. We could just never find them. The grant to put in the new water line from the railroad depot to the sewer plant saves citizens money because the city no longer has to pay for that water loss.”
Catherine Baker, NWAEDD grant administrator, said that grant also helped make the sewer plant operate more efficiently, which also helps save the city and water/sewer customers money.
“The pressure and volume of water going into the sewer plant wasn’t correct, so it wasn’t operating as efficiently as it was designed,” Baker said. “Now it is operating better. It is more efficient and things like that help keep the rates down.”
Baker encouraged people to fill out and return the survey that was mailed out by NWAEDD.
“The City of Eureka Springs may be able to apply to the state for up to $300,000 in grant funds to improve our water or wastewater system, improve sidewalks, or complete other qualifying projects,” Baker said in a letter to Eureka Springs residents that included the survey and a return envelope. “To know whether the city can apply for this grant, we need to know whether most residents’ income falls within a certain range. All responses are anonymous and confidential, and only used to decide whether the city can apply for the grant.
“The only person who will see your response is the person who will calculate whether the city qualifies and, even then, names will not be attached to the responses. A large number of responses are needed for the survey to be accepted—even if your household income is above the threshold, please take a moment to fill out and return this form today.”
The letter asks people to find the column that describes how many people live in your home, and then mark whether your income(s) are above or below the limit.
Baker said the letters were sent out to about a third of the households with a water account. Some houses have one meter for two or more tenants who live in the same building. In that case, Baker said the person paying the water bill could estimate the incomes of all residents.
“We will do about three or four mailouts because we must have an 80 percent response rate,” she said. “We can only survey full-time residents, not owners of vacation homes or homes being used for tourist lodging. We took out businesses. We did the best we could. We have received a lot back undeliverable, so we are taking those off the list, as well.”
Some cities with a large population can apply directly to the federal government for CDBG funds. For smaller cities in this area, NWAEDD applies for the grants and handles regulatory compliance.
“We are an extension of city or county government to handle paperwork and audits so the local governments don’t have to take staff away from their jobs,” Baker said. “We know the smaller towns and counties have limited staff. Once we have our survey completed, if we qualify, we can apply for infrastructure grants.”