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Hot Springs delays vote on proposed water and wastewater impact fees after lengthy presentation and public concerns
Summary
After a detailed study presentation showing maximum impact fees of roughly $11,174 (water) and $10,674 (wastewater) per 5/8" meter, the board tabled two ordinances to May 5 to allow more outreach and to consider waivers/exemptions for affordable housing and small builders.
The Hot Springs Board of Directors tabled two ordinances that would set development impact fees for the city's water and wastewater systems after a prolonged presentation, board questions and public comment from builders and residents.
City Attorney Brian Albbright and consultant Dan Jackson of Willan Financial Services presented the study and legal framework. Jackson said an impact fee "is a one-time charge paid by new development to finance the construction of public facilities needed to serve it," and described the methodology used to calculate maximum fees. His calculations produced maximum per-unit (5/8" meter) figures of about $11,174 for water and $10,674 for wastewater; staff said the board can choose any fee up to the calculated maximum and may adopt waivers for projects that further affordable housing or economic development.
Directors asked whether fees would apply across the entire service area (city and county connections), how meter-equivalency ratios would scale fees for larger meters, and whether the fees would hurt small or affordable projects. Jackson and Albbright said the fee applies across the service area as defined by the system and that state law (Ark. Code —14-56-103) constrains how fees are calculated and administered; they also noted the board may create specific waivers (for example, accessory dwelling unit connections were discussed with a $250 cap if a separate connection is requested).
Local builders and developers, including Carol Weatherford and Lance Levy, told the board that moving from the existing wastewater fee ($500) and no water impact fee toward fees in the thousands would make small and affordable builds financially infeasible given other upfront costs such as taps, street cuts and meter installations. "If you take away that impact fee that you've already charged me here, now you do me 2,000 and 2,000," builder Carol Weatherford said, emphasizing cumulative upfront costs.
After discussion, Director Dudley Webb moved to table the ordinances and request additional stakeholder outreach, including meetings with local builders and housing providers; the board voted to table both O-26-07 (wastewater) and O-26-09 (water) to May 5, 2026.
Next steps: staff was directed to convene work sessions and outreach with developers and affordable housing stakeholders and return to the board with refined recommendations and any proposed waiver language before the May 5 meeting.
