Nevada County Picayune and Gurdon Times Newspaper Archive

Gurdon Sewer Rates Forced Higher

"We've got obligations, which we have got to meet," said Harold Hurst, Gurdon Water Department manager, at the May 15, meeting of the Gurdon Water and Sewer Commission.

Hurst produced a letter sent to Gurdon Mayor Rick Smith on April 24, from the Arkansas Department of Environmental Quality (ADEQ).

In the letter, the ADEQ clearly states a deficit exists based on the inflation in operation, maintenance and replacement cost of these types of sewer systems. The rate system based on cost in 1995 is antiquated, according to the ADEQ.

Cathy Coston, ADEQ financial analyst, issued the letter, which is available to the public upon request under the Arkansas Freedom of Information Act.

Coston said, "There is no way out of this for the city in order for them to meet the bond requirements."

The bond states, under Section 15, "If the City defaults in any Bond Fund requirement or in the performance of any of the other covenants contained in this Ordinance, the Bondholder may, by proper suit, compel the performance of the duties of the officials of the City under the laws of the State. The Bondholder may apply... appointment of a receiver to administer the System on behalf of the City and the Bondholder with power to charge and collect rates sufficient to provide for payment."

The Bond Ordinance is also available for viewing by the public upon request.

Coston and associates will be providing information, presenting related documents and answering questions, on behalf of the ADEQ, for the public at the June 12, meeting of the Gurdon City Council.

The commission will be taking no action on the subject until then.

Two of the water commission seats come up for renewal at the council meeting. Commissioner Jim Hatley has already been recommended for renewal pending the agreement of absent commissioner, Don Morehead. Commissioner Morehead is the other seat coming up for renewal. The seats will be renewed separately.

These two seats do not include the one seat still vacant due to lack of volunteers for the position.

Hurst admitted before the commission, "This has nothing to do with the rate increase." But everyone agreed there would be discourse over the department's continuing efforts to procure a new backhoe.

Hatley questioned what was to become of the current backhoe. Hurst conveyed the departments need to keep it.

Commission Chair Bill Dulin asked Hurst about the lease/purchase plan option.

Hurst replied the option was no longer available to the department, especially when the rules call for any purchase over $5,000 to be put up for bidding.

Bidding will begin with the public notices starting next month.

The commission has decided to hold its next meeting on the same day as the city council meeting to get all its work done.