FORT SMITH -- Fort Smith city directors voted Tuesday to increase sewer rates by 60 percent on May 1 to begin raising the money to pay for nearly $500 million in system improvements ordered by the federal government.
The directors passed an ordinance to increase volume charges and billing charges three times in the next 20 months. The move will increase the sewer bill for a typical Fort Smith family from about $19.63 a month to $52.70 starting Jan. 1, 2017.
City Director Andre Good encouraged the board to pass the rate ordinance Tuesday so the city would not be in danger of missing any deadlines in the federal consent decree, which carries daily fines that reach into the thousands of dollars.
The vote from the seven-member board was 6-1, with Kevin Settle voting against the rate increase.
Settle had complained that the recommendation to hire more than 75 new employees immediately to handle the consent decree requirements was premature. He said it would relieve some of the financial burden on the ratepayers to hire additional employees later.
"It's a heavy burden to make this vote tonight," City Director Tracy Pennartz said. "I know we've all prayed over it. I think this is a very important vote for our city."
According to the ordinance, the first increase set to take effect May 1 will raise the volume charge from $3.21 for every 100 cubic feet of wastewater generated each month to $5.35. The flat monthly billing charge will increase from $1.43 to $2.50.
On Jan. 1, the volume charge will go up to $7.15 per 100 cubic feet, and the billing charge will rise to $3.50.
On Jan. 1, 2017, the monthly volume charge will increase to $8.50, and the billing charge will rise to $4.50.
Calculations by Fort Smith consultant Burns & McDonnell of Kansas City, Mo., show a typical household in Fort Smith -- which produces 567 cubic feet of wastewater a month -- would see its sewer bill rise from $19.63 a month to $32.83 after May 1. On Jan. 1, 2017, that bill would increase to $52.70.
City officials are relying on the funds to raise the money needed to make the sewer system improvements mandated in the consent decree filed against Fort Smith in federal court Jan. 2 by the U.S. Environmental Protection Agency, the Department of Justice and the state.
Fort Smith city directors agreed in December to abide by the decree, and the time clock to complete many of the requirements in the consent decree began with its filing.
"No one is excited about doing this," Mayor Sandy Sanders said. "But the time has come. We've been on the clock since Jan. 2."
U.S. District Judge P.K. Holmes III signed the decree Monday as he granted an unopposed motion by Fort Smith, the state, the EPA and the Justice Department to formally approve the agreement.
In the consent decree, the city agreed to fix the sewer system so it does not continue to dump untreated or undertreated sewage into the Arkansas River in violation of the federal Clean Water Act, to eliminate sanitary sewer overflows, and to improve its operating and maintenance practices.
The city has spent more than $200 million in mostly sales-tax money over the past 13 years to work on improvements to the system.
City officials have said the work eliminated 80 percent of the sewer system overflows and included other improvements, such as the construction of huge wet weather pump stations and storage towers in three locations around town.
But in negotiations with the federal agencies, city officials said they will step up the work, agreeing to spend about $480 million in 12 years.
City staff members and consultants estimate the capital costs will reach $375 million, while the operating and maintenance costs will total $104 million.
The capital costs consist of treatment-plant and collection-defect repairs, expanding system capacity, pumping improvements, sewage treatment, engineering and professional services.
The operations and maintenance funds will pay for collection-system maintenance and repair, information management, management, support and adding 82 employees to the current staff of 92 to handle the increased workload.
A Section on 04/08/2015