The Eureka Springs City Council has taken the first step in implementing a 25 percent increase in the water portion of utility bills, a move city officials say is unavoidable because of higher prices charged by the city’s supplier.
At its regular meeting held Monday, June 26 at The Auditorium, the council voted 5-1 to approve the first reading of an ordinance that will increase water rates for residential and business customers. A proposed ordinance has to be read and approved three times before taking affect.
“What we’re asking for in the water rates is that Carroll-Boone [Water District] has raised their water rates twice for us and we have not raised the water rates for the citizens,” said Michael Akins, the city finance director. “We’re asking to raise the water rates just on the water, not on sewer or anything else. Just the water that is metered that goes to your house.”
Akins told council members that the city has waited for the proposed increase for a couple of years.
“We absorbed a rate increase in 2022 that we did not pass along and then we had a rate increase in 2023 that we did not pass along,” he said. “We absorbed those costs because we knew everybody was coming off of COVID and we knew that wasn’t the time to raise the rates.
“We were trying to do everything we could for the citizens so we waited on raising the rates. … And now we’re trying to just level it out to where these increases are what we have been increased on, what we’re paying for the water.”
Council member Autumn Slane cast the lone dissenting vote, suggesting the city implement a smaller increase for now to help people adjust to paying more, while also developing a more concrete plan to address unknown leaks that are increasing the city’s expenses for water.
“I do have to agree that it is bad timing right now,” Slane said. “Everybody is struggling to just do what they’re already doing. I do agree that we need a plan, a solid plan.
“This is a start, and this is the beginning, which I’m super proud of. That’s great. But we need action on this. This has been decades.”
That plan, which was explained by Mayor Butch Berry at the past two council meetings, includes hiring a Fort Smith company to come in and survey the underground leaks.
“That’s the only way that I know how to find the leaks is to have a leak detection come in and find them because as you know, and I know, when you have a leak it doesn’t come to the surface in this town,” Berry said. “We’re trying to find various methods of finding those leaks. … And it’s going to cost us several thousand dollars and we’re going to be able to pay for it.
“Holiday Island went through the same process a while back and I don’t think they are any better off than we are.”
Three residents spoke during public comments, all telling council members they felt fixing the leaks should happen before raising rates.
“We’ve had about five businesses already close this year … downtown,” said resident Ferguson Stewart, who is also a member of the city’s planning commission. “And part of the thing is I’ve been interviewing the business owners and they’re saying they’re about 26 percent down compared to last year.
“So, I think we do need to look at the water rates, but I think we need to fix the leaks first. Right now is not a good time to reach into people’s pockets so I’m asking … tabling until maybe August so we know where we’re at a little closer.”
Council member Harry Meyer said the city efficiently fixes water leaks as they are discovered and something has to be done financially or the water department will be in trouble.
“We’re in a little town that has steep hills and lots of pressure on the water lines and the water lines break,” Meyer said. “We fix water leaks every day. … We need to meet the problem because the water department is going to run out of money and I don’t know where the money can come from since the water department has to be self-sustaining. That’s state law.”
Meyer agreed a study to find the leaks needs to take place but told council members that “any city will lose 25, 30 percent of the water,” but added even the cost to repair leaks has risen greatly along with water prices from Carroll-Boone.
“I know the cost of living for all of us here,” he said. “I’m on Social Security. I’m on a fixed income, too. I understand how it is. But, there’s nothing we can do about stopping inflation.”
Akins reminded council members that residents’ bills do not include the cost of the lost water.
“You have a meter at your house and when the water goes through the meter you’re charged for the water that’s coming into your house,” Akins said. “The water that’s lost is being paid for by the city.”
Council member Terry McClung said he agrees rates need to be raised but wants the city to show residents what will be done to repair infrastructure issues to show “that we’re trying to make progress to correct the leak problems.”
“We need to raise rates and I’m not going to argue that point,” Mc-Clung said. “However, in all fairness to the people in this town, we should have at least a comprehensive plan of sorts in place on what we intend to do step by step.”
Akins said while the increase for water rates would be 25 percent, if approved, overall utility bills would only show an increase of 8 to 11 percent because of other charges included on monthly statements.
The second reading of the proposed ordinance will likely take place at the next council meeting, scheduled for Monday, July 10.
VACATION FEES
The council also asked Forrest Jacobi, city attorney, to draft an ordinance revising the fee structure for those applying for the city to vacate streets or alleys.
Slane wanted the topic on the agenda saying she felt current ordinances didn’t properly address how the city charges fees for the process.
There’s currently a $200 application fee for those requesting a vacation, which requires a lengthy process, according to Ida Meyer, city clerk treasurer. That process includes setting a public hearing, which requires a two-week publication ahead of the hearing in the Carroll County News, the “local newspaper of record in the county,” she said.
“We have to pay the publishing fees,” Ida Meyer said. “[The applicant] pays the $200 but if it fails they get their money back. The city still has to pay publication fees.”
Jacobi told council members that the process was “convoluted.”
“They pay you $200, but we pay publication, she has all this time and energy into it, has to check various departments and the people involved,” Jacobi said. “And if it fails, we’re out the publication fees and we’re out the time and energy.”
He feels the city should stop the process unless a house is built on city property or a building is built on an alley, Jacobi said.
“It’s my opinion we should just stop vacating, just stop giving away city property,” he said. “We don’t have to give it away and there’s no reason to give it away. There’s a petition to vacate an alley or street right up the street from me. It’d make a perfect pocket park. Pocket parks are really nice and we could have them all over the city and it’d be a real enhancement for the city.
“My suggestion is not only should we change the procedure … so if somebody applies, at least we get to keep 100 bucks out of it and they should also pay the publication costs. There’s nothing stopping them from saying, ‘We lost this year. We’re going to come back next year and do it again.’ There’s a lot of issues here we can think about.”
McClung made a motion for Jacobi to draft an ordinance that would amend the fee structure for the process and make 50 percent of the $200 upfront charge nonrefundable.
“What about the cost for the city for publication?” Jacobi asked. “I think if somebody applies they should pay the publication fee.”
Council member Melissa Greene agreed, saying the city should be able to keep the entire $200 fee whether the vacation is approved or not.
“We do put a lot of money into it, a lot of time,” she said.
Berry said once a proposed ordinance was drafted the council can debate exactly how the fee would be structured at a future meeting.
NEW PARKING PAYMENT OPTION McClung told council members that he still hears from individuals who have issues with the smart phone application used by residents and visitors to pay for reserved parking spots around downtown.
That prompted Berry to call up Brian Young, the city’s police chief, who explained that he recently discovered a new system the city would soon start to use that, in addition to the app, would allow those parking to call a phone number to make a payment.
“It’s just a phone call so if they don’t have a smartphone or don’t want to download the app, you just call the number and set up your stuff that way,” Young said.
Young said a local Eureka Springs phone number was created and will be displayed in the various lots. Those not wanting to use the app can use the automated system instead.
OTHER ACTION
In other action, the council unanimously approved the hires of Akins as the city’s finance director and Jacob Coburn as the building inspector and code enforcement officer. The two had been going through their probation periods.
The council also reappointed Ann Tandy-Sallee and Peter Graham to the planning commission and board of zoning adjustment.
In other reports, Kyle Palmer, city planner and historic preservation officer, gave an update on the progress of establishing a Spring Street parking district.
In council member comments, many brought up two recent fires that have affected the community, including one just outside city limits that claimed three lives.
“Yesterday, I ushered at St. James Church,” council member Steve Holifield said. “It caught fire early this morning and is a sad loss to our community. I hope it will rebuild and be back in business as soon as possible.”
Berry said he believes the church can be rebuilt.
“The exterior looks to still be in good condition,” the mayor said. “It’s mostly interior damage that happened.”
In his comments to end the meeting, Berry also read a proclamation naming the month of June in honor of former longtime resident June Westphal “as a time of celebration and deep appreciation for this legacy of service and wisdom and guidance,” and for “her tireless dedication, selfless service and immense contributions to the community.”
