Editor,
Water and sewer rates continue to baffle the city council. The most recent proposal is still irrational and inequitable.
How did the council decide these most recent rates? It was not based on any detailed analysis of the costs and revenues. The 2016 water rate collections exceed the total water costs by $172,600. The 2016 sewer rate collections fell short of sewer expenses by $384,927 when one includes the interest and principal on the sewer bonds.
The city’s figures indicate that the water rates need to be lowered by 20% and the sewer rates need to be increased by 65% to make revenues equal expenses. This is a large increase for sewer rates, but one that is required by law, the bonding covenants, and common sense. If these increases seem shocking or painful, then (1) blame the city council who failed to solve this problem over the past five years after it became apparent, and (2) be thankful that the city rather than the user has paid the sewer bill.
The city council’s most recent proposal adds a “fee” to water users’ bills that will be used to pay for sewer bond indebtedness. The current proposal raises rates for sewer users, but raises them differently for each tier, and not nearly enough to cover sewer bond expenses. More important, the council has not given any rationale for the rates or the differences between tiers.
Rate setting should not be a seat-of-the-pants affair, but it has been with this mayor and council. There are experts, models, whole schools of public administration that deal with these issues, but none were consulted.
Many of the current decision makers (Berry, McClung, Mitchell, Schneider) failed to respond at all over the last five years and now are responding irrationally and inequitably. Eureka Springs deserves better. I say to city council: Table this ordinance, seek help and consultation, carefully predict the costs and potential revenues, then design water and sewer rates that are sufficient, rational, and equitable. Take the time to do this right!
Eric Knowles