Hot Springs Finance Director Karen Scott told the board on Dec. 31 that the city’s wastewater system needs major capital improvements and betterments estimated at approximately $68,000,000 and that revenue bonds will be required to pay for the work.

"The proposed rates will generate the revenue necessary to fund the debt service of the bond issue in the principal amount of $69,800,000," Scott said, during the meeting’s third reading of Ordinance 02438. She said a November rate analysis and long-term financial plan prepared by Willdan Financial Services and Cruz and Associates underpins the recommendation and that representatives from those firms (Jackson and Wright) will appear at the Jan. 7 business meeting to answer questions.

Scott said state statutory language (as cited in the presentation) requires rates to be sufficient to pay operation, repair and maintenance expenses and sinking-fund payments on bonds. City Attorney Albright and staff asked the board to consider amending the ordinance’s effective date from Feb. 1 to March 1 if the board approves the ordinance at the Jan. 7 meeting to allow additional time for implementation.

The ordinance was presented for board consideration; no vote was recorded in the Dec. 31 agenda meeting. The item is scheduled for formal discussion and vote at the Jan. 7, 2025 business meeting when Willdan and Cruz representatives will be present.