Fort Smith city, chamber officials push for sales tax extension

Fort Smith officials are pushing hard for extension of a 1-cent tax approved in 2006 that would keep the tax on the books to early 2014 — about 18 months longer than the 2006 voter authorization.

The extension would raise $30 million for federally mandated improvements to the city’s wet-weather sewer and water collection system.

Early voting on the tax extension continues to June 8, with the citywide vote held June 9. The Fort Smith Regional Chamber of Commerce is on record supporting the extension and plans to communicate that support to its members. No formal opposition to the tax extension has emerged.

PROBLEMS
The city presently faces administrative and other potential oversight from the Environmental Protection Agency and the U.S. Department of Justice because excessive amounts of stormwater and groundwater enter the city’s sanitary sewer system through cracks and defects in the sanitary sewer pipes and manholes.

Major system problems now are backups of untreated sewage into homes and businesses, untreated sewage overflowing from manholes into streets, ditches and creeks and improperly treated sewage being discharged to the Arkansas River. Fort Smith’s sewer system (100-years-old in some spots) can handle the average daily dry weather flow of 14 million gallons, but peak wet weather flows can push 133 million gallons through the system.

PROBLEM FIXES
Since 2001, the city has made $100 million in improvements at water/sewer treatment plans and in the collection system. In 2001, voters approved (68% of the vote) $30 million in sales tax bonds, and voters approved in 2006 (75% of the vote) a $63 million sales tax bond to continue those improvements.

But about $75 million in work remains, according to Deputy City Administrator Ray Gosack. Key areas to fix are the repair of pipe and manhole defects; a system to convey and store excessive flows and then release for proper treatment after a heavy rain; and treating excessive flows at the treatment plants.
 
“The work needs to continue to bring Fort Smith into compliance with the federal Clean Water Act adopted in 1972. Fort Smith is under close scrutiny by the U.S. EPA and the U.S. Dept. of Justice,” Gosack wrote in an explainer note. “If we don’t continue solving these problems, we face serious enforcement action. That action could include hefty fines (as much as $30,000/day), a sewer tap moratorium which would stop all new construction in Fort Smith and devastate our local economy, and possible takeover of the sanitary sewer system by the federal government.”

Even if the tax is approved, a sewer rate increase is necessary (between $6-$12 per household) to support the sewer system improvements, according to a brochure the city inserted in May billing statements. However, city officials say the rate increase will be rescinded with the work is complete and the associated bonds are paid.
 
“A local sales tax has been the least painful way to pay for these improvements. It’s better for residents, businesses and industries because an estimated one-half of the revenue is paid by non-residents. If we have to rely on sewer rate increases to pay for this work, 100% of that revenue will be paid by Fort Smithians,” Gosack noted in his e-mail to The City Wire.