Nevada County Picayune and Gurdon Times Newspaper Archive

Billing Fee Removed

No longer will the City of Gurdon pay the Gurdon Water and Sewer Department 6 percent for the billing and collection of solid waste monies.

This decision was reached Monday night, during the regular monthly meeting of the Gurdon City Council, though members of the Gurdon Water and Sewer Commission disagreed.

The commissioners, also at the meeting, voiced their opposition saying such a move could lead to raises in the water bills.

Harold Hurst, water superintendent, said his department is audited annually by federal agencies and if these agencies feel there isn't enough revenue being generated through the department they can force an increase in rates.

Micki Jones, a member of the city council, proposed the ordinance to remove paying the 6 percent to the department.

She said all departments in the city need to do their part to help, and the solid waste department is in serious trouble.

Jones said the system is already in place for billing and collection at the water department, so it isn't a new duty. In addition, she pointed out the council voted, at its January meeting, to increase residential garbage rates by 50 cents per month.

"A lot of elderly residents can't afford any more rate increases," she said.

Hurst told the council the water department gets a lot of phone calls complaining about solid waste. What the department can handle, it does, he said, with the rest of the calls being forwarded elsewhere. "There's more to what we do than meets the eye," he said.

Each department, Jones said, needs to do its part to help the city of Gurdon grow. The water department, she continued, can do this by agreeing to eliminate the 6 percent collection fee.

The 6 percent in question generates about $375 per month. In January, the water commission agreed to continue handling the billing and collection for solid waste for a flat rate of $350 per month.

This 6 percent, Hurst said, is considered revenue by federal agencies the water department deals with.

While losing this money, some $4,500 per month, may not mean an increase in water rates, Hurst said, the water department is obligated under bond ordinances it must operate under. Should the federal agencies involved demand a rate increase, the department would have no choice but to comply.

Originally, he pointed out, the mayor and council set the solid waste department up in the water department and allowed it to collect 10 percent of the money billed for and collected.

This was reduced to 6 percent under the previous mayor, he said, and the current administration wants to do away with it altogether.

Hurst suggested the council not do this and create potential problems for the water department which could lead to rate increases there. Instead, he asked the city to try and get by without the $375 per month it's paying now for the billing and collection of solid waste.

"My bottom line is," he said, "if our $375 a month could help keep the solid waste department going with no rate increase (for the water department), I'm all for it."

Gurdon Mayor Rick Smith said even with the city raising the solid waste fees 50 cents per month on residential customers, the city is about $400 per month short for solid waste. With the money saved by not paying the water department, this would be a wash, he said.

At this time, Smith said, a study is being done to see how much garbage is generated by the commercial customers. Once this study is completed, a rate increase for these customers could be in the offing.

Taking a calculator and figuring the percentage of monthly revenue generated by the 6 percent, Smith said the number is less than 1 percent. Last month's revenues for the water department were $47,000. The actual figure generated by the 6 percent for solid waste was 0.0089 percent.

Don Morehead, a member of the commission, said there are some costs involved in the billing and collection process, and the water department is doing this cheaper than the city could have it done by an outside agency.

With the discussion complete, the council then voted to remove the 6 percent the city is currently paying the water department for billing and collection, but the department is still required to handle these duties.

In other business, the council passed a resolution to allow the city to apply for a law enforcement grant. This grant, Smith said, would be for $4,000 and the city stands a good chance of being approved for it.

The money would be used to help purchase a car for the Gurdon Police Department.

Smith has been in touch with the Arkansas Department of Finance Administration and was told this money could be used to help buy the car now being leased by the city and used by the GPD.

With matching funds from the City Fines 2 account, he said, the city could buy the car and be out from under the lease.

The council also approved a resolution to allow Smith to apply for the grant, and, if approved, buy the car now being leased. Under the resolution, the city waived the competitive bid ordinance so this could be done.

It was a busy night for resolutions as the council approved one for the disposal of equipment no longer being used by the city. This equipment will be sold at bids and be removed from the city's inventory.

The Street Department will soon be purchasing a new bucket for its backhoe. The money is available to buy a 48-inch bucket, which is twice as big as the one currently being used.

This larger bucket, which will have no teeth, will be used to cut ditches for drainage later this year, and do the job faster than using the 24-inch bucket.

Because of the cost for the equipment, bids will not be needed. The council agreed to allow the mayor and street superintendent to shop around for the best price and make the purchase.

A contingency fund of $100 was established for the 1998 general fund budget. "It's not much, but it's a start," Smith said. "I hope future administrations will put money in this account to build a reserve for emergencies."

He said in talking with the Office of Emergency Services, this agency may help Gurdon by purchasing an emergency warning siren.

The city had set $18,000 aside to buy two such sirens. This money was transferred from the Gurdon Fire Department budget and was to be replaced by money generated by the recently passed half-cent sales tax.

However, only about half of this money will be needed if the OES decides to buy a siren for the city. Nothing, Smith said, has been set in stone as yet.

A reduction in the street department's billing for street lights could be trouble down the road for the city.

Smith said Entergy reduced these rates last month, but the city's largest contributions to the general fund come from franchise taxes. E