During the Helena-West Helena City Council meeting on October 29, 2024, significant discussions centered around proposed amendments to the city's water and sewer rates. The council reviewed an ordinance aimed at adjusting these rates to ensure compliance with state requirements and to maintain the financial sustainability of the city's utilities.

The proposed ordinance, identified as Ordinance Number 16, outlines a structured increase in water rates based on a study conducted by the Arkansas Department of Agriculture and the Arkansas Rural Water Association. The adjustments are designed to align the rates with 1.25% of the median household income (MHI) in the area, which is currently set at $26,779 per year. This translates to a monthly water cost of approximately $27.90 for an average household using 4,000 gallons of water.

Key components of the proposed rate structure include an initial meter charge that varies by meter size, ranging from $16.74 for smaller meters to $341.26 for larger ones. Additionally, a tiered pricing model for water usage will charge $5.06 per thousand gallons after the initial meter charge. For sewer services, a flat rate of $13 will apply, with an additional charge of $5 per thousand gallons used.

The ordinance also stipulates that rates for users outside city limits will be 25% higher than those within the city. Furthermore, an automatic annual increase of 3% is proposed to account for inflation, with adjustments based on the Consumer Price Index for Water, Sewer, and Trash Collection Services.

Council members expressed the importance of these adjustments, emphasizing that they are necessary for the city's fiscal health and to qualify for potential loan forgiveness programs and grants. The urgency of implementing these changes was highlighted, as failure to do so could jeopardize the operation and maintenance of the city's water and sewer utilities, posing risks to public health and safety.

In conclusion, the council's discussions reflect a proactive approach to managing the city's utility rates, ensuring they meet both regulatory standards and community needs. The ordinance is expected to be finalized and implemented by November 1, 2024, marking a critical step in securing the financial viability of Helena-West Helena's public utilities.