Council wrestles with water and sewer rate overhaul; consultant offers block‑rate tool

The Helena‑West Helena City Council spent the bulk of its Oct. 22 meeting reviewing proposals to change water and sewer rates to meet updated loan‑forgiveness criteria and a revised median household income (MHI) threshold.

Mr. Meadows, the consultant who presented a rate‑calculator tool, proposed switching from the current linear rate to an increasing‑block structure. He demonstrated adjustable blocks (for example 0–1,000; 1,001–4,000; 4,001–9,000; 9,001–15,000; and >15,000 gallons) and showed how changing block pricing affects both individual bills and total revenue. “With these rates… we meet the minimum requirement for the MHI,” Mr. Meadows said, describing how a 4,000‑gallon residential bill could be tuned to a target that qualifies the city for loan forgiveness.

Staff and a representative from Arkansas Rural Water (Dennis Sternberg) presented an amended rate study that staff said had been refactored after an Oct. 2 meeting with state agencies. The rate‑study numbers in the packet (pages 86–87) recommend a minimum first‑thousand water charge of $16.74 and a per‑thousand gallon charge of $5.06 thereafter; sewer minimum was listed as $13 with roughly $5 per successive thousand. Staff said those figures represent the minimum the study requires for compliance with funding criteria; the council may structure above those minimums.

Council members and residents debated fairness and bill impacts. One resident, Robert Cheek, urged caution about catastrophic bills caused by leaks or meter failures; he said structured rates can work but require safeguards. Councilors asked for comparisons (examples shown included 3,000; 5,500; 9,000 and 20,000 gallon usages) and for the consultant and staff to demonstrate combined bills including sanitation, taxes and fees. Staff cited the average residential water use at about 5,475 gallons per month and used the calculator to show sample total bills (including sanitation and taxes) for those usage levels.

Councilors discussed loan strategy as well: staff noted an earlier $11,000,000 loan had been approved for water-only uses and that a larger $16,000,000 loan (under review) could be de‑obligated or consolidated to maximize forgiveness; staff recommended the council consider whether to pursue the larger loan. The council agreed to continue the discussion at a follow‑up meeting noted in the transcript as “the 20 ninth” (described as a special/limited meeting in lieu of the Nov. 5 meeting) to review the ordinance language and settle final rates.

No rate ordinance was adopted at the Oct. 22 meeting; staff noted an ordinance will be required and distributed a proposed schedule in the packet for council review.