Sewer rate increase on Fort Smith board agenda

The Fort Smith board of directors is scheduled to vote Tuesday (Dec. 21) on a 5% sewer rate increase to cover debt covenant requirements related to bonds for sewer system improvements.

On Dec. 7, the board approved a 5% water rate increase for the same purpose, but state law required a 10-day public notice period before sewer rate changes.

The rate increases will help cover cover a 110% debt covenant threshold on about $15 million in debt service requirements. The city is now below the threshold, and City Finance Director Kara Bushkuhl has warned that remaining below the threshold will endanger the city’s credit rating.

Estimates provided by Fort Smith Utilities Director Steve Parke show the 5% increases would result in a monthly increase of $1.40 for water and sewer use of 5 ccf (each); a monthly increase of $3.02 for 10 ccf; and a $6.31 monthly increase for 20 ccf.

City Directors George Catsavis and Kevin Settle voted against the water rate increases.

The board is also on Tuesday scheduled to approve $202,700 in funding for outside agencies. Providing city money to the services began as an effort to assist The Boys & Girls Club and other groups that provided youth activities. As with any program that hands out tax money, requests for the money grew, with the board having to make tough and controversial decisions about who to fund and how much.

On Aug. 11, 2009, the city board created a task force to develop suggested procedures for reviewing requests from the agencies and to come up with a list of names to serve on the review panel. To determine the 2011 funding plan, a 9-member panel spent 151 hours reviewing 28 applications. The applications requested $461,391, with the panel cutting the recommended allocations to $202,700.

RECOMMENDED ALLOCATIONS
• Recreation agencies
First Tee: $5,429 to help pay utilities (requested $10,000)
Fort Smith Boys & Girls Clubs: $7,239 to help pay utilities (requested $44,000)
Girls Inc.: $10,859 to help pay utilities (requested $20,000)
Lincoln Youth Services: $12,699 to help pay utilities (requested $18,000)

• Arts and Humanities
Fort Smith Chorale: $4,800 to help pay costs (requested $6,000)
Fort Smith Heritage Foundation: $5,000 for operations support (requested $10,000)
Fort Smith Little Theatre: $6,250 to help pay utilities (requested $6,782)
Fort Smith Museum of History: $10,000 for operations support (requested $20,000)
Fort Smith Regional Art Museum: $6,250 to help pay utilities (requested $6,782)
Fort Smith Symphony: $11,600 for program support (requested $14,500)
Second Street Live: $9,215 to help pay utilities (requested $10,000)
Western Arkansas Ballet: $4,800 for program support (requested $6,000)

• Social/Community Services
River Valley Regional Food Bank: $6,000 to help pay storage costs (requested $15,000)
Reynolds Cancer Support House: $5,390 for operations support (requested $10,000)
Lincoln Childcare Center: $6,791 for operations support (requested $12,600)
Community Dental Clinic: $3,665 for operations support (requested $6,800)
Hannah House: $4,668 to help pay utilities (requested $7,500)
Crisis Intervention Center: $15,000 to help pay utilities (requested $15,000)
Girls Shelter: $8,000 to help pay utilities (requested $8,000)
Kistler Center: $4,500 for technology improvements (requested $7,018)
Children’s Emergency Shelter: $16,170 to help pay utilities (requested $30,000)
Alzheimer’s Association: $5,000 to help pay utilities (requested $5,000)
Next Step Day Room: $10,780 to support case management (requested $20,000)
Fountain of Youth: $9,268 to help pay utilities (requested $17,330)
Community Services Clearinghouse: $13,475 to help pay food costs (requested $25,000)