Prairie Grove council increases water, sewer rates beginning Feb. 1

PRAIRIE GROVE — Water and sewer customers will pay small incremental rate increases over the next four years, with the first increase taking effect Feb. 1.

Subsequent rate increases will take effect Jan. 1, 2022; Jan. 1, 2023; and Jan. 1, 2024.

The City Council approved an ordinance at its Nov. 16 meeting to increase rates for almost all customers. Customers who use less than 1,000 gallons of water per month actually will see their rates go down.

The council placed the ordinance on first reading at its October meeting to allow a public hearing in November. No one from the public made any comments, and the council adopted the ordinance last week without any discussion.

Beginning in February, Prairie Grove will have two classes of water users: city and rural/NW rural, instead of three separate classes: city users, rural service users and northwest rural line users.

Another change moving forward is that rates will be the same for each user class. Previously, the city used a diminishing rate structure that awarded big users. The more water a customer used, the less it cost per 1,000 gallons.

For 2021, city water users will have a base rate of $11.14 for the first 1,000 gallons per month and then $6.91 per 1,000 gallons thereafter. Rural water users, for 2021, will pay a base rate of $30.07, and then $6.91 per 1,000 gallons thereafter.

The city does not have different classes for sewer customers. All customers pay the same base rate for the first 1,000 gallons of water per month and then the same rate per 1,000 gallons afterwards.

For 2021, sewer customers will pay $18 for the first 1,000 gallons and then $6 per 1,000 gallons thereafter.

The average customer using about 4,500 gallons of water each month will see a 2.5% increase in costs for water and 0.5% increase for sewer the first year, according to Larry Oelrich, director of administrative services and public works.

Oelrich recommended smaller, incremental increases instead of waiting too long and having to implement a large rate increase for customers.

He has told City Council members the rate increases are necessary because of cost increases with repair, construction materials and chemicals. Water purchases also have increased, and the city needs to add at least one staff person and increase reserve setbacks.

The city will use revenue from the base rate for debt service and the rest will be used for operating costs.

In other action last week, the council approved two rezoning requests that were recommended by the Planning Commission at its Nov. 12 meeting. The Planning Commission denied a third rezoning request that night.

The council approved rezoning two large commercial lots on Buchanan, across from Industrial Park, from B-1 to R-2, which allows duplexes and tri-plexes. This land originally was left as a commercial zone before the bypass was built.

The owner wants to donate a portion of the land located in a wet area to the city, and Oelrich recommended the city accept this land because a city pump station is located on it.

Westside Development, developer of the Prairie Meadows subdivision, submitted the rezoning request. Oelrich said he thinks the developer will propose duplexes on the land. There are other duplexes in the same area.

The council also rezoned land on Butler Road from A-1, agriculture, to R-1.75 for a proposed residential subdivision with about 137 lots for single-family homes.

The development would be located near Mountain View subdivision, which is under construction and will be located between Parks and Butler streets. Mountain View will have 172 lots on 53 acres when finished.

The Planning Commission on Nov. 12 voted 3-1 against a request from 7 Oaks Development to rezone 80 acres located at the corner of Bush Street and Ditmars from A-1 to R-1.5.

Council member Brea Gragg, who is a member of the Planning Commission, reported the commission preferred the land be rezoned R-1 to fit in with other R-1 subdivisions in the area.

She said one of the concerns was that a R-1.5 density would be too high. The developer proposed to build on 30 acres in the first phase and then move into the remaining 50 acres, Gragg said.

The council gave the OK to move forward on a recommendation to refinance three bond issues to reduce the interest rate on the loans.

Currently, the city is paying a 3.7% interest rate on the loans. Bob Wright with Crews & Associates financial firm said it’s possible the interest rate could be lowered to 2.5% or less, if the city refinances. The bonds will be sold in January, with the closing in February, Wright said.

Wright estimated a net savings of $350,000 in interest costs for the city.

In other action, the Council:

• Approved longevity bonus for employees: $400 for 10 years or more, $350 for 5-10 years, $300 for 1-5 years, $200 for less than one year.

• Appointed Chuck Wiley, city public works manager, to the Boston Mountain Solid Waste District Board and Benton Washington Regional Public Water Authority board.

• Approved trading a D7 dozier and a 2007 Freightliner truck to Willie Leming for a 2014 Case backhoe plus $10,000.

Oelrich recommended smaller, incremental increases instead of waiting too long and having to implement a large rate increase for customers.