Water and sewer rates in Eureka Springs are one vote away from increasing.
At its regular meeting held Monday, Aug. 11, the Eureka Springs City Council approved the first and second readings of Ordinance 2371, which would restructure water and sewer rates for residents and businesses that receive city services.
“Mr. Mayor, it’s with regret, I’d like to assign this ordinance a number and put it up for its first reading,” council member Terry Mc-Clung said before the initial vote.
“With regret, I second,” council member David Avanzino added.
Two residents spoke against the rate increases during a public hearing that took place at the start of the meeting, and while the council acknowledged that an increase could be a burden on some customers, they agreed it was a move the city had to make. Specifically, city officials said the increase is necessary for the city to stay within the regulations of Arkansas Act 605, which holds communities accountable for their water systems to be fiscally responsible.
“This is Act 605 and Act 925 compliance stuff that we have to do,” city public works director Simon Wiley told council members. “So, these rates will have to be passed.”
While current rates are computed based on usage, the new rates will also take into account the size of the meter servicing the property.
Most residents in the city are on
a 5/8-inch meter, Wiley said, the smallest and cheapest on the new monthly charge chart.
Proposed Rate Increases
These charts show the water and wastewater rates that would take effect if Ordinance 2371 is approved on a third reading by the Eureka Springs City Council. The council approved the proposed ordinance on its first two readings on Monday, Aug. 11.
Water Rates Minimum Monthly Charge Effective Date Sept. 2025 Jan. 2026 Inside City Limits Meter Size (inches) 5/8 $20.68 $21.09
3/4 $20.68 $21.09
1 $20.68 $21.92
1 1/2 $21.58 $26.97
2 $24.27 $32.77
3 $27.87 $43.20
4 $30.57 $51.96 Outside City Limits
5/8 $41.35 $42.18
3/4 $41.35 $42.18
1 $41.35 $43.84
1 1/2 $43.15 $53.94
2 $48.55 $65.54
3 $55.74 $86.39
4 $61.13 $103.92 Usage Charge Per 1,000 Gallons Effective Date Sept. 2025 Jan. 2026 Inside City Limits 0-2,000 Gallons $0.50 $1.00
2,001-8,000 $11.09 $12.02
8,001 and over $11.37 $12.32 Outside City Limits
0-2,000 Gallons $2.00 $2.00
2,001-8,000 $22.28 $24.04
8,001 and over $22.84 $24.64
Wastewater Rates Minimum Monthly Charge Effective Date Sept. 2025 Jan. 2026 Inside City Limits Meter Size (inches) 5/8 $19.80 $21.80
3/4 $19.80 $21.80
1 $20.70 $23.80
1 1/2 $20.70 $23.80
2 $23.35 $30.35
3 $26.95 $40.45
4 $29.65 $48.90 Outside City Limits
5/8 $39.60 $43.60
3/4 $39.60 $43.60
1 $41.40 $47.60
1 1/2 $41.40 $47.60
2 $46.70 $60.70
3 $53.90 $80.90
4 $59.30 $97.80 Usage Charge Per 1,000 Gallons Effective Date Sept. 2025 Jan. 2026 Inside City Limits 0-2,000 Gallons $1.00 $2.00
2,001-8,000 $11.14 $13.54
8,001 and over $11.42 $13.88 Outside City Limits
0-2,000 Gallons $2.00 $4.00
2,001-8,000 $22.28 $27.08
8,001 and over $22.84 $27.76 “The overall majority, big majority, of the city is 5/8,” Wiley told council members.
The first round of new rates, if approved by the council on a third vote and emergency clause at its next meeting set for Monday, Aug. 25, would go into effect in September.
Another rate increase would then begin in January 2026, according to the proposed ordinance.
Currently, all customers inside city limits pay a base charge of $17.98 a month for the first 2,000 gallons of water, and those outside city limits are charged a $35.95 base amount.
An additional base amount of $17.98 is charged for the first 2,000 gallons for wastewater usage.
Under the new ordinance, the majority of those inside city limits that have a 5/8-inch meter will pay a base fee of $20.68 starting in September and $21.09 beginning in January for water.
For those outside of city limits with a 5/8inch meter, the base charge will be $41.35 starting in September and $42.18 in January.
Starting in September, 50 cents will be charged per 1,000 gallons for the first 2,000 gallons, and that will increase to $1 per 1,000 gallons starting in January.
For wastewater, those inside city limits with a 5/8-inch meter will be charged a base fee of $19.80 in September before it increases to $21.80 in January.
The base sewer fee for 5/8-inch customers outside of city limits will be $39.60 in September and $43.60 in January.
“I’d like the general populace to know that we’ve got to pay this bill, too,” McClung said. “We live in the city and don’t like the idea of raising the rates any more than anybody else does. The state put us in a catch-22 that we haven’t really got a choice. It’s no consolation, but it’s happening all over the state. We are not alone in this situation.
“Numerous towns and cities are having to go through this because they’re in the same boat. Things are old and inadequate and breaking apart, and it’s the state ultimatum, but, you know, I wish I could say something that would make it a smooth transition, but there is nothing.”
Mayor Butch Berry echoed McClung.
“… While our rates are going up, there’s a lot of other communities that the rates are very, very high, a lot higher than what Eureka Springs is doing in Northwest Arkansas,” Berry said. “That’s not a justification or a rationalization or anything, but it’s still saying that we’re trying our best, and with this rate study, to keep the rates down as much as we can.
“I don’t know whether the city council realizes it, or the public, but the largest water consumer in the city is the city and we have to pay the same water bill at the same rates as Inn of the Ozarks or the Crescent Hotel, any of the larger water users, we’ve got to pay that same water bill. The sewer plant uses a lot of water. The sewer plant is a lot of water.”
Wiley said Eureka Springs’ proposed new rates are in line with what other cities are having to do.
“We’re pretty much in line with a lot of the communities, but … there’s a lot [of cities] that are really high, where their base rate is almost $80 for water and similar for the sewer side of things,” Wiley said. “We’ve kind of jumped the gun a little bit with the Act 925 that the state’s mandating on the sewer side. It’s not due for a little while, but we need the funding for that sewer plant for the big projects. That’s kind of why we went ahead and started working on that. When I submit all the paperwork and this ordinance is adjusting these rates, I’ll be able to satisfy both of those requirements to the state on both sides.
“Some of the cities, their water bills have to be over $200. And I know we heard people talk today about paying really high water bills, but our average water bill going out is just barely over $50. And not only is that water, but that’s sewer and trash. And trash, I think, accounts for a lot of the bills that people don’t realize. I think they’re paying more for trash than they are for their water or sewer.
“But, we’re really not sitting too bad in comparison to a lot of the communities of our size in the Northwest Arkansas area.”
While the rate increase would help with needed funds for refurbishing the wastewater treatment plant, Berry has also established a committee to help think of ways the city could raise money to help fund the infrastructure needs, including the idea of a possible sales tax.
Randy Wolfinbarger, Dick Titus, Jim Nelson, Kolin Paulk and Melinda Large will join Mc-Clung and Berry on the committee, the mayor said.
In the end, the council approved the first two readings of the proposed ordinance and McClung encouraged anyone with an opinion on the issue to come voice their concerns or support at the next council meeting set for Aug. 25.
“I would like to encourage anyone out there that’s paying attention, if you want to come in and say something, the beginning of that next meeting is going to be your opportunity, if you want to at least say your piece,” McClung said. “And I don’t blame you if you do.”
OTHER BUSINESS
In his regular report Wiley told council members that the city has improved to a 30 percent water loss because of leaks, the best in his tenure over public works.
“I ran the water loss report and we are down to 30 percent water loss,” Wiley said. “When I took over back in 2022 we were at 60 percent. We’re down to 30 percent now. So, the guys are doing a great job over at public works and I can’t thank them enough for the work that they do.
Zane Lewis with McClelland Engineering gave the council an update on the progress of work at the sewer plant, and also reported a new grant possibility through the Arkansas Department of Agriculture’s Natural Resources Division.
The $4.25 million grant will be awarded in November, Lewis said.
The council voted to authorize Berry to submit the necessary grant application this week.
The council also began a discussion, sparked by council member Steve Holifield, about the high number of vacant buildings and homes in the city and ways to urge owners to sell properties and not let them get run down and vandalized.
In another approval, the appointment of Douglas Beard to a vacant seat on the cemetery commission was approved.
MOYER ON HOSPITAL
Council member Rachael Moyer responded to recent comments made at a hospital commission workshop regarding the council’s continued request for information regarding hospital finances.
“I wanted to respond to some comments made at the recent hospital commission meeting,” Moyer said. “Asking for information on the financials is not continuing to, ‘dig to find something.’ And we’re not, from my perspective, ‘auditing the commission,’ per se. It’s not personal, and I think this reflects a misunderstanding on the intention of myself and this body. It’s our responsibility to ask questions and to verify information. And I think this is also the responsibility of the commission.
“If the hospital commission were asking the questions, then we wouldn’t have to. I am encouraged that this council has been able to support increased accountability to the hospital financials during the administrative transition. And, I am excited to get to the workshop so that we can maybe get some finalization on that and put focus on other things. …” A joint workshop including the city council and the hospital commission and administration has been tentatively scheduled for 4 p.m. Friday, Aug. 15.
