City resumes utility cutoffs, late fees

HOT SPRINGS — The city of Hot Springs confirmed last week that it has resumed utility disconnections and penalties for late payments.

The city announced in March that it had suspended disconnections and late penalties, but City Manager Bill Burrough said last week that the grace period has ended.

He said no penalties were assessed for past-due amounts from March through the end of June, and payment plans of up to six months are available for accounts in arrears.

“Customers will need to pay the current bill and a portion of the past-due amount that is worked out with the customer,” he said. “We began calling those customers last week and have a high percentage of customers paying their entire bill, while others have opted for a payment plan. We were concerned that some balances would get to a point that the customer may not be able to get caught up on the balance.”

Citing the importance of hygiene in slowing the spread of covid-19, the city suspended water and sewer disconnections after it declared an emergency in March in response to the coronavirus pandemic. Burrough said utility funds’ accounts receivable had a combined balance of close to $2.6 million at the end of May.

In addition to funding the maintenance and operation of the water and sewer systems, ratepayers secure about $350 million in debt issued for capital improvements, according to information the city’s financial adviser presented the Hot Springs Board of Directors in June.

“Our hope is that we will not have to disconnect any customer, but the reality is that disconnections took place prior to the pandemic,” Burrough said. “We are hopeful that the payment plan option will reduce the disconnections even below the percent experienced pre-pandemic.

“After reviewing the balances, we had to make a tough decision to start collecting the past-due amounts. But in so doing, we wanted to offer each customer a payment plan of up to six months.”

The city announced last week that its utility assistance fund has been depleted. Help to Others, or H2O, established in August 2018 allows utility customers to donate to the relief program, but the city said donations have been limited since the program started.

The program followed the water rate increase that took effect in January 2018. It raised the minimum charge for residential customers inside the city by $8 a month over four years and $12 a month for residential customers outside the city. The rate structure reverts in 2022 to the 3% annual increase stipulated in the city’s utility code.

Customers can sign up for the H2O program at http:// www.cityhs.net/h2o. Cooperative Christian Ministries and Clinic is partnering with the city, screening applicants for eligibility and administering funds of up to 75% of the amount an applicant needs to restore service or prevent a disconnection. Applicants are responsible for the balance of the payment and are eligible for one assistance payment in a calendar year.

“Now, more than ever, the H2O program needs those who can add a few more dollars to their monthly water bill so that we, as a community, can offer our struggling neighbors some much-needed assistance,” Cooperative Christian Ministries and Clinic Executive Director Kim Carter said in the news release that the city issued last week.

“At the moment, there are just no available funds. We hope this new, convenient way to sign up online will restore the fund both for the times we’re in and for the future.”

Customers can sign up for the program online or through the water and sewer bill they get in the mail.