By Martin Couch
Effective as of Jan 1, 2011, Bryant city residents will see a nine percent increase in their water and sewer bills after the Bryant City Council passed two ordinances added to the agenda at Thursday night's December meeting.
After listening to a lengthy review of the rate structure from a 2008 ordinance that was to set rates at[more] 16 percent for water and sewer given by Crist Engineering president Larry Gaddis, the Council was hesitant to put the entire rate increase in effect and, rather, voted to add six percent to the three percent total from last year to cover the cost of the Central Arkansas Water raising its rates eight percent.
"Is there a way for us to stretch this out to where we not killing citizens with this increase all at once?" Alderman Chris Tipton asked.
The Crist model projected that all Phase 1 projects in the water/wastewater department would be completed through 2020 at 16 percent.
"The bottom line is how everybody is thinking we changed the rate structure anytime you want to if you do, we have to go back to the ANRC (Arkansas Natural Resources Commission) to make sure it supports the project," said Monte Ledbetter, Water/Wastewater department director. "If we lower the rates, we won't have as much cash on hand to pay as we go. If the rates stay in place, this is the money and the projects we will have to complete. We can only finance $9 million. It's like we pay now or pay more later. That's kind of where we are at."
Hollis suggested bumping the 2011 rates to 2012 to allow the ANRC time to complete the paper work for those projects.
"We have plenty of surplus at this point and the ANRC is ready to go through with financing for the water tank and the aeration project," Hollis said.
Alderman Brenda Miller still had a problem passing along a 16 percent increase.
"I wish, in 2008, there would have been phasing to get there instead of all of a sudden do this for 2011," she said.
After deliberation and discussion of alternatives, the Council approved a nine percent increase in water and sewer rates to take effect on Jan. 1, 2011.
"If we took no action, the rates will go into effect," Mayor Larry Mitchell said.
"The best thing I think we can do is catch up from last year," Tipton said. "It will take 6.48 percent for us to catch up. From there, we know we are going to have to pay what we didn't pay last year. I say catch up from last year and stretch it out for the next year. My concern is I don't want us to get caught up in always chasing our tails."
"I think we should increase it six percent and come back with clear minds and new minds, and work this thing out," Alderman Steve Gladden said.
"I like this better than 16 percent," Tipton said.
On the water side it would mean $200,000 additional and wastewater $432,000 for a roughly estimated total of $610,000 in revenue.
