Water districts get agency's help

The Arkansas Natural Resources Commission approved up to $1.9 million in loans and up to $368,225 in grants to rural water and wastewater districts Wednesday morning, including a $154,500 grant to a district officials have recommended for takeover.

The commission tabled a vote on a loan of up to $412,000 for 19 properties in a west Pulaski County subdivision after two commissioners objected to the loan as it was written.

On Wednesday, the commission approved loans for Foreman in Little Rock County, Indian Switch in Chicot County, Smackover in Union County, Turrell in Crittenden County, Bearden in Ouachita County and Viola in Fulton County. The commission approved grants for Indian Switch, Turrell and Birdsong.

The commission approves millions in loans and thousands in grants each year, largely for upkeep of existing rural water and wastewater systems and some for small communities that have never been connected to a utility.

At its third meeting of the year Wednesday, the commission approved $7,725 for Birdsong, a Mississippi County community of 41 people. Originally requested as a loan, commissioners voted to change the loan to a grant after commission Vice Chairman Mike Carter of Fort Smith said he was concerned that a community of 41 people wouldn't be able to pay back a loan.

The commission also heard two requests for Turrell in Crittenden County, a 615-person town that's lost a third of its population since 2000.

Turrell's wastewater system, along with the town of Fisher's sewer system, were identified by commission officials before the meeting as two candidates for state takeover. The commission never has petitioned a judge to place a system into receivership but has had the authority by state law to do so for a few years.

Mark Bennett, water resources development division manager, said the takeover process could take two years to make official and that the town needed improvements to its system sooner than that.

"They're out of compliance with the Health Department," Bennett said.

Carter asked Bennett whether Turrell could be combined with another nearby district instead.

"The system to the north would be Birdsong," commission Chairman David Feilke of Stuttgart said.

"I take back everything I said," Carter said.

The commission approved a loan of $51,500 for Turrell and a grant for $154,500.

Commissioners tabled a request from the Ferncrest South Property Owners' Water Improvement District of Pulaski County after Carter and Commissioner Jerry Hunton of Prairie Grove raised questions about why the district had approached the commission for a loan.

The subdivision was constructed and sold without connections to running water and sewer, Bennett said.

After having issues with insufficient well water, Bennett said, neighbors formed the improvement district and asked the commission for a loan to construct a water system that would be owned and operated by Central Arkansas Water.

The value of the properties, which is factored into loan applications, ranges from $300,000 per property to $500,000 per property, Bennett said.

Carter said those property owners could go to a bank and get a loan, so they didn't need one from the commission.

"This is not the type of loan that we should be considering," he said. "We shouldn't be in the business of being a banker for prosperous people."

Hunton said he wasn't opposed to some sort of loan for the property owners but said the loan should have stricter terms and should not set a precedent that developers can skip installing water and sewer systems for homes, then make property owners rely on government for adding them in later.

Metro on 05/21/2015

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