Directors to discuss utility rate increases

During Tuesday’s city board meeting, Siloam Springs city directors will hear Ordinance 2123 concerning the adjustment of utility rate increases from 2022 to 2027.

The ordinance will have its first reading on Tuesday. City directors will hear the ordinance two more times before voting to adopt it.

City staff contracted with 1898 & Company to conduct a formal rate study, according to a staff report prepared by City Administrator Phillip Patterson on Oct. 25. Workshops were held on May 4 and June 15, and the final report was presented to the city board on Sept. 7, the report states.

Results of the study showed that the annual rate increases could be lowered for electric, water and sewer while still ensuring that there would be sufficient revenue to maintain the current levels of service, the report states.

The study also found that the annual rate increase needed to be increased for solid waste to ensure sufficient revenue to maintain the current level of service, the report states.

Proposed rate changes are as follows: reduce electric rate increases by 50 percent; reduce water rate increases by 70 percent; reduce sewer rate increases by 20 percent and increase solid waste rate increases by 160 percent, the report states.

Increases will be for the years 2022 to 2027, the report states. A rate study will likely be required to comply with state law, the release states.

City directors will hear and vote on the following items:

Presentations

• Hinkle and Company 2020 audit report.

Consent agenda

• Workshop minutes from the Oct. 19 workshop.

• Regular meeting minutes from the Oct. 19 city board meeting.

• Resolution 54-21 regarding a significant development permit for 15303 AR Highway 59.

• Resolution 55-21 concerning a special use development permit for 602 N. Mount Olive St.

• Resolution 56-21 regarding a special use development permit for 509 E. Ashley St.

• Resolution 57-21 concerning a special use development permit for 618 E. Main St.

• Resolution 58-21 regarding a special use development permit for 313 S. Wright St.

• Resolution 59-21 concerning a Surface Transportation Block grant for design improvements on East Kenwood Street for

$220,000. Resolutions

• Resolution 60-21 regarding a preliminary plat development permit for the 200 block of Airport Road.

• Resolution 61-21 concerning the suspension of purchasing requirements related to utility inventory purchases.

Ordinances

• Placing Ordinance 2122 regarding the annexation of 53.8 acres for the 200 block of Airport Road on its first reading.

Staff reports

• September financials

• Administrator’s report.