The Mountain Home City Council will have its third and final readings of three water and sewer rate ordinances during its regular April session Thursday evening at 6:00. One ordinance would amend the rates for Mountain Home’s water system, another ordinance would change the rates for the sewer system, and the third would amend the contracted water rates between the Mountain Home Water Department and its wholesale purchasers.
Northeast Public Water Authority (NWPA) President Donald Cox told KTLO, Classic Hits and The Boot news Wednesday the authority is opposed to the proposed hikes.
This isn’t the first time the NPWA has been at odds with the city. The water authority, which provides water to about 1,800 residents, filed a lawsuit in November 2015 contending the city had overcharged for water it sold to the authority under the terms of an agreement updated in 2012.
In the July 2017 ruling finding for the City of Mountain Home, Judge Gordan Webb wrote the city did not breach its agreement with the water authority and the price charged by the city for water purchases was permitted by the agreement and was appropriate.
The NWPA has appealed Judge Webb’s decision. In the appeal, Northeast maintains its damages as a result of the improper calculation of the water charges exceeded $650,000 through January 2017. It further maintains these damages are ongoing on a monthly basis as a result of the city’s collection of expenses associated with the entire water system versus the share for production of the water purchased by Northeast.
Cox says this time the NWPA felt Mountain Home officials needed to hear an official objection in the form of a letter.
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Cox also says the proposal is untimely given tax increases at the city and county level along with the recent $18 dollar landfill fee.
Mountain Home Mayor Joe Dillard says the increase is out of necessity.
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Although City Water and Sewer Director Alma Clark declined an interview, she says the department is conservative with spending. She cites a decrease in debt when in 2014 $12.27 million was outstanding and in 2017 that amount had been reduced to $5.4 million.
The proposed increases are for residential and commercial water and sewer customers in Mountain Home. In addition, increases are proposed for those who purchase their water through the Northeast, Gassville/Cotter, and Lakeview/Midway districts.
The proposals call for 1.8 percent increases in both the water and sewer rates for Mountain Home customers. In addition, wholesale water rates would increase at varying levels. Records indicate both water and sewer rates were raised 2 percent in June 2017. The wholesale water rates were increased in June 2016.
At Northeast, an increase of 13 cents per 1,000 gallons of water used per month is proposed, taking the rate from $3.91 to $4.04. At Gassville, an increase of 13 cents per 1,000 gallons of water used per month is proposed, taking the rate from $4.42 to $4.58. At the Lakeview/Midway Public Water Authority, a 17-cent increase is proposed per 1,000 gallons of water used per month, taking the rate from $4.66 to $4.83.
The increases were referred to the council by the water and sewer committee. Membership of the committee consists of Water and Sewer Director Clark and Councilmen Rick Pierce, Carl Graves, Jennifer Baker, and Eva Frame.
Thursday’s meeting will be held in the council chambers of the Municipal Building.
The council will also consider two items of new business. One ordinance would rezone a residential property to commercial and the other would ammend the personnel policy handbook.
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