Council To Consider Increasing Water Rates

PRAIRIE GROVE — Water customers in the city of Prairie Grove will see a rate increase in the near future, according to plans being considered by Prairie Grove City Council.

An ordinance to increase water rates is scheduled to be on the agenda for the Nov. 16 City Council meeting. Revenue from the rate increase will be used to pay off the debt of a new $2.5 million bond issue for the water treatment plant.

Water bills would go up about $6 per month for an average customer who uses 4,500 gallons of water, according to Larry Oelrich, director of public works and administrative services. The city has about 2,100 water customers.

Oelrich said rates most likely would increase effective Jan. 1, 2016, but that would be a Council decision.

The City Council held a public hearing last week on the issuance of $2.5 million in water and sewer revenue bonds but no one spoke at the hearing. Following the Oct. 19 hearing, City Council members approved a bond ordinance to provide financing for the improvements at the water treatment plant.

Oelrich said final plans will be submitted for review to Arkansas Health Department. When the health department approves the plans, the next step will be to advertise for bids. Oelrich said that would probably happen the first of December.

The debt service for the new bond issue will be about $135,000 per year. The rate increase will provide

revenue to retire this debt, Oelrich said.

“Our intention is to make sure we have additional revenue to make that bond payment,” Oelrich said.

The recommendation for new water rates is $11.54 for the first 1,000 gallons, $6.54 for the next 14,000 gallons, $ 6.49 for the next 15,000 gallons, $6.29 for the next 70,000 gallons and $ 5.99 for all usage over 70,000 gallons.

Oelrich provided a rate comparison from other cities to Council members last week.

The comparison (which is based on figures from two years ago) shows that Prairie Grove customers pay about $28.48 per month for an average consumption of 4,500 gallons of water per month. This would go to $34.43 with the proposed rate increase.

Centerton customers pay about $32 per month for 4,500 gallons of water and Gravette customers pay about $39 per month. The highest cities are Lincoln and Bella Vista, which pay about $50 per month for 4,500 gallons. Washington Water Authority customers pay about $59 per month.

City staff have talked about the need to meet city water needs for the future for more than a year. The Water Department’s master plan shows the city’s 40-year-old water treatment plant would go off-line in 2017.

Oelrich, in the past, has given Council members two options: either purchase all water from Benton/Washington Regional Public Water Authority (treated water from Beaver Lake) or upgrade its own facilities using Prairie Grove Lake.

Currently, about 44 percent of water used in Prairie Grove comes from the treatment plant on Prairie Grove Lake, while 56 percent comes from the water authority, commonly known as Two Ton because of the last syllables in the names of the counties it serves.

Council members earlier this year gave Oelrich the go ahead to keep Prairie Grove Lake as a water source and to proceed with plans to upgrade the facility.

Construction should start by the end of the year and take about four to five months to complete.

Oelrich described the project as a “complete rehab” of the water treatment facility.

In other action Oct. 19, Council members approved a request to rezone property on both sides of Heritage Parkway between the Parks Street and Butler Road intersections. Billy Joe Bartholomew requested to have property rezoned from agricultural to B-2, or quiet commercial. The property includes about 300 feet along both sides of the highway, according to Oelrich.

The Council also approved purchasing two larger electric heaters for the new maintenance facility. It is heated by fire wood. The city will continue to use wood heat, as well as electric heat.