Eureka Springs is officially falling in line with most other communities in the area and raising water and sewer rates for all customers.
The Eureka Springs City Council unanimously approved the third and final reading of Ordinance 2371, which restructures and increases water and sewer rates for residents and businesses, at its regular meeting on Monday, Aug. 25.
The ordinance calls for three incremental increases, starting with a 25 percent raise in September, and another 8 percent increase coming in January. A third increase of 8 percent will then go into effect Jan. 1, 2027.
“It’s not easy for me to raise water rates,” longtime city council member Terry McClung said. “It’s not something that I wanted to do. I’ve got to pay this like everybody else. I understand the hardships on the residents as well as the businesses. It’s unfortunate. We’re not alone in this kind of situation. Cities all over the state are having to do what we have to do because it’s one of those things that has been out of mind for years, and I mean years, and eventually it’s going to catch up with everybody and it’s catching up with us, Huntsville, all over. “We just have to accept it as a community and pay the bill. We’re not inflating anything in what we’re raising as far as rates go; it’s all dictated by formulas and things that are provided by the state. That part of it is basically out of our hands.”
Council member Rachael Moyer spent a majority of the discussion urging the council to postpone a vote and instead focus on a campaign for a sales tax to help fund a bond issue to raise the funds needed to satisfy requirements in Acts 605 and 925. Those acts require city water and wastewater departments to be self-sufficient and not delve into city funds to help support shortcomings.
Moyer pointed to recent savings because of fewer water leaks around the city, and also wanted more insight from a committee recently put together by mayor Butch Berry to look into funding ideas, including a sales tax.
“I think it’s a mistake,” Moyer said at one point during a discussion of approving the final reading. “What’s the harm in holding off? We have our attorney [Heather Owens] who’s going to look to see if we would actually be in noncompliance if we don’t vote on it right now, and we wait until we get a full report from the commission and then we make a decision then.”
The city would risk being out of line from state requirements, which might jeopardize future grants or funding, Moyer was told. Owens also reminded Moyer than the next opportunity for such a sale tax vote to get on the ballot would be the next general election.
“The [water/sewer] rate study was presented to and accepted by council in March 2025, and we have two years to get those rates into place because ours [rate study] went up over 50 percent,” city finance director Michael Akins told the council. “If you were under 50 percent you had a year, if you’re over 50 percent you have two, so the way the rate structure was presented to the state is we didn’t want to have to implement all of the rate at one time. So, we implemented it over time. So, you have a 25 percent now, you have an 8 percent in January, and then we’ll be coming back for an 8 percent, in January ’27.
“We were supposed to implement this in July, which is what the state had approved, and I talked to McClelland [Engineers] today about the financing, and we have applied for this financing based upon this rate study and what we’re putting the rates at. So, they could come back and say, ‘we’re not going to approve your rate or …. we’re not gonna approve your loan because you haven’t done the rate yet. …” After Akins’ explanation, along with more information from public works director Simon Wiley and Berry, Moyer said she understood the importance of approving the change at this time.
“Thank you so much for bringing facts to the conversation,” Moyer said to Akins. “…. As you’re saying, if I understand what you’re saying, that even though our financial situation might look better and our current rates can cover operating cost, what you are saying is financing we’ve already applied for is going by the rate study.”
Owens said it’s really out of cities’ hands.
“Ms. Moyer, the law does say ‘shall,’ ” Owens said. “You have to do the rate study and you implement the rates. The General Assembly has basically taken this out of your hands and is requiring you to perform these studies and implement the rate.”
To help ease the burden on customers, Mc-Clung, along with council member Harry Meyer said they plan to bring a vote to the table at an upcoming meeting to eliminate Infrastructure and Improvement fees that are currently added to monthly bills.
“The I&I is something that I hope to put on the agenda for our next meeting and where we can do an ordinance to do away with it. Do away with that,” Mc-Clung said.
Wiley explained the front and back of a water bill, describing what each charge is, while also going over in detail why there is a need for an increase. He placed his presentation on the public works department’s Facebook page for residents and business owners to view.
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 for the first 2,000 gallons, and that will increase to $1.00 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.
Wiley said he felt there was misinformation abut how much of an increase most residents will see.
“I think there’s a lot of misconception about how much these rates are actually going to increase,” Wiley said. “Our average residential bill is less than 2,000 gallons. The current amount charged for water amounting to less than 2,000 gallons is $17.98 and sewer is also $17.98. Plus, there’s the $5 I&I fee which totals $40.96.
“The new proposed rate that you’ll be voting on tonight will be the new bill. The new rate will be $20.68. It’ll be based off your meter size, with the majority of the meters in the city are 5/8 meters. You’ll be charged $1 for the first 2,000 gallons used and then $5 for I&I.
“The sewer proposed rate will $19.80 plus $2 for the first 2,000 gallons. This will result in a total water and sewer bill of $48.48. Now, this doesn’t include the clean water fee sanitation.
This is water and sewer only. So, the increase for the first 2,000 gallons used if you have water and sewer inside the city limits will be $7.52 per month plus taxes.”
While the rate increases will get the city in line with what is required by the new state laws, a sales tax would be ideal to help the city with aging infrastructure.
A vote on a proposed sales tax that would have designated 75 percent to water and sewer needs and 25 percent to The Auditorium failed overwhelmingly five years ago, Berry said, but stakeholders in the community feel now is the time to readdress the issue with the entire tax going toward water and sewer infrastructure needs.
“The idea of the potential sales tax to cover infrastructure, we tried to do that like Butch said, the mayor said, a number of years back,” McClung said. “It’s time to put it back on the drawing board, and the community along with our tourists, we have to step up to the plate and accept that responsibility. It’s ours as a whole. It’s not fun for any of us sitting up here to make these kind of decisions, but it has to be done. I love this town as much as anybody, and I want it to stay that way for myself and the future people that live here. I want it to be a good place to live.”
