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Hot Springs schedules public hearing on proposed wastewater and water impact fees, consultant to present rate study
Summary
The city introduced ordinances to impose or increase development impact fees for wastewater and water systems, scheduled a statutorily required public hearing for wastewater, and said a consultant will present a rate study and comparable communities at the next meeting; fees would fund capital projects and may be pledged to bonds but cannot fund operations.
The Hot Springs City attorney introduced ordinances that would create or increase development impact fees for the city’s wastewater and water systems and scheduled a public hearing required by Arkansas law for the wastewater proposal.
The wastewater ordinance (02607) would amend Ordinance 5275 and limit impact-fee assessment to new development. The ordinance text in the packet specifies that fees may be used only for the planning, design and construction of new or capacity-expanding wastewater facilities, may be pledged to bonds issued for wastewater capital improvements, and may not be used for routine operation or maintenance. The ordinance sets a trigger for assessment — generally a final plat recorded on or after June 1, 2026, or an application for a new wastewater connection on or after that date if no plat is required — and lists exceptions for reconstructions that do not add units, governmental projects, accredited K–12 schools, certain redevelopment districts and projects waived by board resolution.
The packet caps impact fees for accessory dwelling units at $250, citing Arkansas Code Annotated §14-56-205. City Attorney Mr. Albbright and consultant Dan Jackson said the rate study and comparable-fee data will be presented at the March 3 meeting; Jackson said the analysis shows how local comparables and the city’s policy choices influence the balance between funding growth-related capital and encouraging development. Jackson warned that setting a fee too high can discourage development and noted that many utilities use impact-fee revenue to offset capital-improvement costs rather than to underwrite debt service entirely.
City staff said wastewater impact fees must be deposited in a wastewater trust fund and may be used to offset prior capital expenditures or bond obligations but not day-to-day operational expenses. The city will hold the required public hearing on the wastewater fee at the board’s March 3 meeting; Dan Jackson is scheduled to present the rate study and comparables at that hearing.
Ending: The ordinances were introduced at the agenda meeting; adoption was not concluded there. The board will hold the public hearing and consider second reading and possible adoption at the March 3 meeting.
