Residents raise concerns over utility rate increase

SILOAM SPRINGS — Siloam Springs residents recently spoke out against Ordinance 21-23, which would amend the municipal code regarding utility rate increases.

The ordinance proposes raising utility rates but decreasing those increases for electric by 50%, water by 70% and wastewater by 20% while raising solid waste by 160%, according to City Administrator Phillip Patterson.

Ordinance 21- 23 was placed on its first reading with a vote of 5-1 with Director Lesa Rissler absent from the meeting and Director David Allen casting the only “no” vote.

“In my staff memo I use the term that the solid waste would need to be increased by 160%,” Patterson said. “That’s the mathematical calculation of 1.6. The reality is the increase in solid waste based on the rate study was 60% greater than what’s currently in the code.”

A few citizens spoke negatively about the increase. Mark Miller wanted to clarify that the rates were going to go up with the ordinance.

Larry Kenemore started his remarks with the statement, “How much is enough?” Kenemore asked how many cities use the CPI for utilities and also brought up the fact that the directors (except Allen) voted in favor of a resolution to suspend purchasing requirements related to utility inventory purchases, in short waving competitive bidding.

“I guess as long as you keep extracting these funds from us every month, keep making a profit off of us every month, you can just spend the money however you want,” Kenemore said.

Jan Simmons McGuirk echoed similar statements about the increase. McGuirk said she felt like once people stepped up to the podium the directors stop caring because they have already made up their minds.

Joseph Blanks thanked the directors for letting him come and speak. Banks said he understood if the increases were to fund needed programs. Banks also spoke against the buy-all-sell-all solar ordinance the board approved last year.

“I am all for public funding that does good,” Banks said. “When it comes to wasteful spending or if it’s not something that’s generally beneficial to everyone you gotta question it.”

All of the city directors weighed in on the ordinance in some sort of fashion. Director Mindy Hunt thanked Banks for his questions and said she appreciated to be reminded where the money goes.

Hunt also said she tries not to make up her mind on the issues until she has heard all sides. Director Brad Burns said he has big shoulders and can handle the criticism and that he has been trying to get the city to get hybrid electric vehicles.

Burns also said the directors have to take care of city business but encouraged people to come to speak at board meetings.

Director Marla Sappington said she also lives paycheck to paycheck and understands how people feel.

Director Carol Smiley said that she also tries not to make a decision before hearing people. She also said small increases were better than a large increase in five years.

Director Reid Carroll said the city has a duty to do its best for its citizens. Carroll said this does not mean buying new trucks but making sure services like police and fire are well funded.

“There is somebody who has the responsibility of looking at what’s going to happen tomorrow,” Carroll said. “If we do have a rate increase on (utilities) to accomplish that I see that as a necessity.”

Carroll also said he was proud of the city and of the almost 300 employees and was proud to be able to approve their raises.

Allen offered opposing statements to the rest saying that the rate increase is not necessary.

He called Patterson’s statements about cutting 44% from the police and fire departments as well as other departments like the library and parks and recreation “hogwash.”

“It’s nonsense saying you take 44% across every department, and that’s not how you run a business,” Allen said.

Allen said the board voted $125,000 for a rate study that could have been done by a college kid because the company that the city hired did not approach other cities about their utility rates personally but instead just looked at the rates online.

He also said the city’s practice of automatically raising utility rates and basing the raises on the Consumer Price Index (CPI) doesn’t make any sense and that the city ran fine for decades without increasing utility rates and proposed not having an increase for one year.

“My question is why is it one way or the other and both are rate increases,” Allen asked.

“Why stick with the one that is based on CPI of all four utilities or going with this one that is kind of a shell game?”