Nevada County Picayune and Gurdon Times Newspaper Archive

Sewer Rate Hike Expected In Gurdon

In all likelihood, there will be an increase in Gurdon's sewer rates.

Harold Hurst, manager of the Gurdon Water and Sewer Department, told the Gurdon City Council, at its regular meeting Monday, May 8, the Arkansas Department of Environmental Quality (ADEQ), is requiring the department to increase the rates.

However, he said, the base rate of $14.45 for the first 1,000 gallons of water used in the sewer system will remain unchanged. The fee will be $2.30 for every 1,000 gallons used thereafter. Currently, this fee is $1.50.

Hurst said the department entered into the agreement with the ADEQ in 1991, borrowing $2.1 million to upgrade the entire system.

The department repays this loan at $146,000 annually, and is also audited every year.

The problem, Hurst said, is this year's audit wasn't good. The ADEQ says the system isn't generating enough revenue on the sewer side for future maintenance and operation needs, and, therefore, is requiring the increase.

Exactly when the increase will go into effect isn't known at this time.

First, the council will have to pass an ordinance allowing the rate hike to occur, then it will go before the Gurdon Water and Sewer Commission for approval.

Five years ago, Hurst said, the department tried to fight a rate increase, but lost.

If the increase isn't approved, the ADEQ, he said, has the legal authority to come in, take the system over and establish its own rates.

The sewer system loan, he said, will be paid off Oct. 15, 2013.

"We had no choice at the time (in 1991)," he said.

Hurst pointed out this does not affect the water rates in any way, it is only about sewer revenue.

In discussing the water department further, Hurst said a well drilled near Lowe Field, the city's airport, in 1990 still shows signs of having a carcinogen, though the water is not tainted.

Tests have been ran on the entire well apparatus, with the only finding being some plumber's putty found in the pipe.

It has been sent off for testing and the results should be back soon.

Returning to the topic of the sewer system, Hurst said the ADEQ is protecting the bond holders with this rate increase, and making sure the city pays its debt off.

There will be no breaks for senior citizens or those in the low income bracket when the new rate hike goes into effect.

"Technology is changing," Hurst said, "and the ADEQ will force us to change with it."

The ADEQ, he said, recommends the department go back to the bond attorney to have the ordinance drawn up, but this will cost.

The last one, he said, ran about $5,000 in legal fees.

Because the lending agencies involved don't recognize individual departments, the city had to sign off on the loans, and is, therefore, responsible for making sure they get paid back.