LITTLE ROCK — Maumelle residents soon will be paying 5 percent more on their combined monthly water and sewer bill, along with a $3.93 monthly charge for Maumelle Water Management to pay off a $14 million debt.
When fully implemented next year, the monthly debt service charge will double to $7.86 per meter and the additional charges will total almost $10 a month, utility officials estimated. Homeowners having a separate sprinkler system meter will pay the monthly debt service fee twice.
The Maumelle City Council approved the increases in an 8-0 vote Tuesday night after stressing the need to guard the city’s future water service. The increases will probably first appear on March bills, Barry Heller, the utility’s general manager, said after the meeting.
“Either we see the system go to ultimate failure or we take steps right now to ensure that doesn’t happen,” said Alderman Jamie Stell, a co-sponsor of the proposal with Alderman Brenton Witonski. The two served on a utility finance committee that reviewed utility needs and put together the multi-part proposal.
The proposal approved Tuesday night includes:
An increase of 5 percent in the utility’s combined water and sewer bills.
A $7.86 monthly debt service fee for residential customers based on meter size that will be phased in - $3.93 this year and an additional $3.93 in 2012.
An annual inflation adjustment to begin in March 2013.
A $3-per-month “senior citizen discount” for residents 65 and older starting in January 2012. The senior citizen discount will be limited to one dwelling unit and residents will have to apply for the discount with proof of their age.
Three residents spoke in favor of the increases but with some reservations, suggesting impact fees or higher water connection charges for new development. Two others spoke against the increases.
“I do think it calls for a real study on where the money is going,” said Kitty Chism, who supported the increase. “Maybe we need to take the time to look at what the problem is.”
Steve Mosley, who spoke against the increase, said the water utility “has some crisis about every five years.”
“Let’s fix the problem before we throw more money atit,” he said.
The new debt service fee of $7.86 a month will be for the smallest of meters, which covers almost all residential customers, Heller has said.
Maumelle has 9,600 to 9,700 water meters, with 2,600 of those being sprinkler meters. Regular meters cover water usage in the home, whereas sprinkler meters measure water applied to lawns.
Alderman Doug Ladner, who has a sprinkler meter, recommended turning it off for four of five months to save money. A reconnect fee is $35.
Heller told the council that sprinklers “are a luxury” and those who have them should be charged more for their water use. Once spring arrives, he said, water use in the city rises from about 2.2 million gallons daily to 6 million gallons daily in less than a fourweek period.
“You’re causing more of the debt than someone else is,” Heller said, referring to homeowners with sprinkler meters.
“Personally I’m against it,” Alderman Tony Brainerd said of paying the debt service fee twice for having two meters. “But as an alderman, I have to support it. It’s ugly, but it might be the fix we need.”
Businesses and industries will be assessed a debt service charge for their larger meters ranging from $40 to $120 monthly when fully implemented, depending on their meter size, according to proposal documents.
The debt service fee will continue until the utility’s existing $14,793,000 long-term debt from past improvements and expansions is paid off. No new debt will be added under this fee, Heller said.
In March 2010, the City Council approved a 5 percent rate increase that began the next month. Aldermen, though, held off on approving automatic 5 percent increases for 2011 and 2012, opting instead for annual reviews. The annual inflation adjustment would help eliminate the need for the utility to come back every year seeking a new increase, Heller has said.
Last year’s proposal was aimed at making up a $432,000 revenue shortfall from 2009 because of a reduction in water usage and to pay for $4 million in repairs on decaying water and sewer pipelines.
Arkansas, Pages 10 on 01/19/2011