Fort Smith Board of Directors halts major water projects in hopes of avoiding tax hike
The Fort Smith Board of Directors put a temporary stop to major city water projects.
The board passed a resolution Tuesday night to halt water projects that cost more than 20% of city revenues. The directors did this in reaction to Act 605, which mandates that if a water project costs more than 20% of system revenues, then the city has to have a water rate study, which would determine how much the city would have to raise its water rates.
The board is opposed to raising water rates, as Fort Smith residents just passed a sales tax on the condition that sewer rates freeze.
Director Robyn Dawson said, “I personally feel like the public does not understand the ramifications of that act, and I think oftentimes the public feels like when things happened on the board that they weren’t informed or it was sketchy or shady or that type of thing, and when you’re talking about water rates possibly being mandated through a legislative act, I think that that’s important that we spend the time in a study session to have that done so that the public is 100% aware of what Act 605 says and what that means for the community of Fort Smith."
Dawson said, and others echoed, that many Fort Smith residents do not understand the difference between sewer and water rates, and they will feel tricked if water rates rise.
“I had a call just this week about this where someone was upset saying that we had made the condition we wouldn’t raise water rates, and now here we are looking at that, and I had to help them understand the difference between water and sewer, and so I do think this is very important to educate our community on it and give them an opportunity to learn about it," Dawson said.
The board pushed the issue to its Sept. 13 meeting, when City Administrator Carl Geffken said he would have more information regarding the interpretation of the law.
Director Neal Martin made a motion to amend the board's resolution. His amendment mandated that before major water projects can resume, the board must vote to approve the projects. His amendment passed unanimously.
Board members expressed frustration with Act 605.
“I will say I’ve said it before I’ll say it again, I think that Act 605 is one of the most ridiculous pieces of legislation I’ve ever seen come down the pipe from any place I ever lived at any level of government I’ve ever worked at," Director Jarred Rego said.
Rego implored the audience to reach out to state legislators to seek change in Act 605.
Halting water projects that costs more than 20% of system revenues means pausing construction on the planning for a project that would bring water from Lake Fort Smith to Chaffee Crossing via a water line. It also disrupts projects that involve Highway 45 and Towson Avenue.
The state is reimbursing the city for its part in the Highway 45 project, but the board is still unclear on whether the project would be included in the projects that cost more than 20% of system revenues as the state is paying for the project.
Alex Gladden is a University of Arkansas graduate. She previously reported for the Arkansas Democrat-Gazette and The Jonesboro Sun before joining the Times Record. She can be contacted at agladden@swtimes.com.
This article originally appeared on Fort Smith Times Record: Fort Smith Board of Directors puts hold on major water projects
