Helena‑West Helena council hears rate study showing 73.5% water loss, acknowledges four consent administrative orders

Consultants from Arkansas Rural Water told the Helena‑West Helena City Council tonight that the city’s water system is losing an estimated 73.5% of treated water in its distribution system and recommended a phased increase in water and sewer rates to restore fiscal sustainability. Dennis Sternberg, who identified himself as representing Arkansas Rural Water, presented a rate study prepared under Act 605 that models immediate and phased changes to charges and shows the city needs both short‑term repairs and long‑term capital work.

The recommendations matter because the study projects a combined water and sewer revenue increase from the current ~$2.88 million to about $4.31 million annually under the proposed rates, closing a water‑only shortfall of roughly $1.18 million and producing a modeled combined debt service coverage ratio above state requirements. Sternberg stressed the findings are sensitive to the city’s data and said the study included a $100,000 emergency loan and an $11 million loan approved but not yet received when calculating debt obligations and breakeven figures.

Sternberg told the council the most urgent technical finding was the system’s calculated annual water loss: “73.5% of your water is being lost in your distribution system,” he said, adding that the figure indicates aging pipes, leaks and inadequate asset‑management practices. The study shows the city sold about 378.4 million gallons in the year analyzed, produced about 1.428 billion gallons and served roughly 3,868 water customers; Sternberg recommended funding a refurbishment and replacement account (5% of revenues) and instituting an asset management plan as required by the statute.

On specific rate changes, the study recommended keeping meter‑size minimum bills where they are and increasing the cost per thousand gallons in two phases. The first‑year recommendation would raise per‑1,000‑gallon charges inside the city to about $5.06 (from $2.73), with a second‑year phase to about $7.39 per 1,000 gallons to reach breakeven; Sternberg provided example monthly impacts (a roughly $6.99 monthly increase for a 4,000‑gallon household in the first year under one scenario). For wastewater the study recommended a first‑thousand rate near $3.89 and $2.82 per thousand thereafter.

Council members pressed on customer impacts and program details. One council member asked how the increases would affect households with unknown leaks or renters; Sternberg replied that, legally, usage after the meter is the customer’s responsibility (homeowner or renter) and that the city should pursue public education and landlord accountability while using repair funds and contractors to reduce system loss. He also emphasized hiring an engineer quickly to prepare plans required by regulators and advised setting aside the recommended 5% refurbishment replacement account to pay for leak repairs and equipment replacement.

Councilmembers also discussed staffing and licensing requirements identified by state agencies. The rate study and recent hearings prompted review of four consent administrative orders (CAOs) from state health and environmental authorities; those CAOs impose 90‑day milestones, including hiring an engineer and ensuring licensed operators are available for the water and wastewater systems. Staff told the council some compliance steps predate the current council and that fines cited in the CAOs could be waived with demonstrated compliance.

The council took one formal vote tonight: Miss Miller moved to adopt Resolution No. 10 (a resolution acknowledging receipt of four consent administrative orders), Miss Davis seconded, and the roll call vote was 4 yes, 0 no with Miss Harris and Mister Saint Columbia absent. The resolution formally records the council’s receipt of the CAOs and its intent to comply. The council discussed scheduling the required public hearing(s) and publication of notice ahead of any ordinance to adopt new rates, and members urged rapid hiring of an engineer and qualified licensed operators to meet state deadlines.

The meeting ended with members and the mayoral office urging swift action and community outreach; Council members said they will publish information, hold listening sessions and return with drafts for ordinance adoption and public hearings. No ordinance adopting new rates was passed tonight; the council’s next steps include advertising the public hearing(s) and assembling engineering and staffing plans required to show progress toward compliance with the CAOs.