FORT SMITH -- Fort Smith residents will be able to weigh in later this month on a proposed ordinance to increase sewer rates by more than 2.5 times by 2017.
Vice Mayor Kevin Settle introduced the ordinance Tuesday that will, if passed, increase sewage volume charges for residential, commercial and industrial users from the current $3.21 for every 100 cubic feet of sewage produced to $5.35 in 2015, $7.15 in 2016 and $8.50 per 100 cubic feet in 2017.
The monthly billing charge also would increase each year from $1.43 now to $2.50 in 2015, $3.50 in 2016 and $4.50 in 2017, according to the proposed ordinance.
A family of four producing 550 cubic feet of sewage a month that now pays $19.09 a month in volume and billing charges will pay $51.25 in 2017.
The directors also approved a resolution Tuesday scheduling a public hearing on the proposed ordinance for 6 p.m. March 17 at the Fort Smith Public Schools Service Center at 3205 Jenny Lind Road, Building B, where the directors hold their voting meetings.
Settle said that before the directors could vote on the ordinance raising the rates, they must give the public an opportunity to comment on it.
Fort Smith City Administrator Ray Gosack told the directors they could vote on the ordinance anytime after the public hearing, adding it would be on the March 17 agenda.
If the directors pass the ordinance as presented, the first rate increase would go into effect May 1. Rate increases approved for 2016 and 2017 each would become effective Jan. 1 of those years, according to the proposed ordinance.
Director George Catsavis proposed that the directors consider instituting a 1 percent sales tax to raise the money needed for the sewer improvements instead of raising sewer rates.
"I've gotten several call from people who say this [rate increase] is going to put them under," he said.
He said he wanted the directors to discuss it at their study session next week.
Gosack said a 1 percent sales tax in Fort Smith generates $20.1 million a year.
But Director Keith Lau warned the city mustn't waste time studying alternatives because there are fines in the federal consent decree on the sewer system for missing deadlines and failing to make progress on the improvements.
"My view is to stay the course and go with the game plan and not study this to death," Lau said.
Director Mike Lorenz also appeared to oppose a new sales tax. He said the rates paid by Fort Smith sewer customers are below the national average and should keep up with the cost of delivering the service. And ongoing maintenance expenses should be covered by sewer rates, not taxes, he said.
City Director Tracy Pennartz asked city staff to publicize on the city's website before March 17 information about the city's utility assistance program that offers low-income residents help in paying utility bills.
City officials say the rate increases are needed to comply with the requirements of a consent decree the directors signed with the federal Environmental Protection Agency, Department of Justice and the state of Arkansas late last year.
The government charges that Fort Smith has, for decades, been violating the federal Clean Water Act by not controlling sanitary sewer overflows that occur around the city and not preventing the discharge of untreated or inadequately treated sewage into the Arkansas River. The overflows and dumping also violate the city's wastewater discharge permit.
A memorandum to directors from city Utilities Director Steve Parke said the rate increases would raise the money needed through 2018 to pay for improvements to the system along with development and implementation of a maintenance and operations program also mandated in the decree.
The total improvements and maintenance program are estimated to cost $397 million for capital improvements and $104 million for maintenance and operating costs over the 12-year term of the decree.
Gosack wrote in a memorandum to city directors last week that the city has spent $201 million over the last 14 years to finance construction work on the sewer system. The money was raised from the sale of revenue bonds, which were retired using city sales tax funds.
"The work has addressed 80 percent of the chronic wet weather overflow locations and the use of sale tax bonds has kept sewer rates low for many years," he wrote.
Metro on 03/04/2015