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The Monticello City Council accepted a state-required water and sewer rate study, conducted by the Arkansas Rural Water Association (ARWA), Tuesday night, that recommends a significant increase in the city’s sewer rate, with council members indicating they favor phasing the increase in over two years.
Mayor Jason Akers called the meeting to order at 6:01 p.m. Tuesday, September 22. All council members were present except Cedric Leonard.
The rate study was added to the agenda after city officials received the completed report at 3 p.m. Tuesday. Akers explained that municipalities are required to conduct a water and sewer rate study every five years and said ARWA performed Monticello’s study at no cost to the city.
According to information presented to the council, Monticello’s current water rates are adequate, but its sewer rates will need to increase.
City officials said the study recommends increasing the sewer usage rate from $2.36 per 1,000 gallons to $8.25 per 1,000 gallons. Because the recommended increase exceeds 50 percent, officials said the city can phase it in over two years rather than implementing the entire increase at once.
Under the preliminary approach discussed Tuesday, the sewer rate would increase to approximately $5.30 per 1,000 gallons in the first year, then to $8.25 the following year.
Akers stressed that the figures apply to usage above the city’s minimum threshold. Customers using 2,000 gallons or less are charged a base rate, meaning those customers would not be affected by the usage-rate increase in the same way.
The study also recommends the city establish an automatic 3 percent annual increase for both water and sewer rates beginning in 2027 to help the city keep pace with increasing operating costs rather than allowing rates to fall behind.
Although the council accepted the study Tuesday, the actual rates will have to be established through an ordinance that is expected to come before the council at next month’s meeting.
Akers said accepting the study is important because failure to comply with the required process could affect the city’s eligibility for state funding and grants. He said approximately $700,000 in state turnback funding used for streets and road repairs and roughly $100,000 supporting the city’s general fund could be affected if the city failed to comply.
“This is something that’s mandatory; it’s required by the state, and we’re going to do it,” Akers said.
Ashley Rodermund also noted that the combined water and wastewater operation is currently operating at a deficit. The recommended sewer increase is intended to help address that shortfall and provide funding for infrastructure needs, including sewer pipes and water lines.
Council members discussed whether to implement the recommended sewer increase at once or divide it between two years. The consensus was to move toward a two-year implementation, with the administration and City Attorney Whit Barton expected to prepare an ordinance reflecting that approach.
The council also considered several changes to the city’s building and construction ordinances.
Monticello Fire Chief Eric Chisom presented proposed amendments intended to update outdated language and bring the city’s codes in line with current state standards.
One proposed ordinance would amend previous city ordinances governing building permits. Among the changes is removing references to the Southern Standard Building Code, which Chisom said has been obsolete since 1997, and correcting language involving bonding requirements for plumbers, electricians and HVAC contractors.
The amendment would also incorporate roofing permit requirements previously approved by the council but apparently omitted from an earlier ordinance revision.
Council members approved the first reading of the ordinance but indicated additional changes could be made before it returns next month.
A second ordinance would formally adopt the Arkansas Fuel Gas Code, which Chisom said is already referenced through plumbing and mechanical codes used by the city.
The council also heard the first reading of an ordinance designed to allow Monticello’s electrical, plumbing and mechanical codes to automatically follow versions adopted by the state rather than requiring the council to adopt a new ordinance each time the state updates its codes.
Chisom said the change would help keep Monticello aligned with state requirements and make it easier for outside contractors working in the city to know which standards apply.
In other business, the council approved a resolution continuing the city’s annual ad valorem tax levy. Rodermund said there is no change from the previous year.
The council also approved a corrected lien involving property at 616 E. McCloy Street. A proposed lien on property at 133 Falls Street was withdrawn after Code Enforcement Officer Brian Rodgers reported the property owner had paid the amount owed.
Discussion was more extensive concerning a nuisance property at 138 Deerfield Drive.
Questions arose over ownership of a mobile home at that address and the property beneath it. City Attorney Barton and council members discussed county property records indicating the mobile home and underlying property may have different ownership information and addresses.
Rodgers said the owner of the mobile home had contacted him and acknowledged that the mobile home needed to be removed but requested additional time.
Because of questions involving ownership, notification, and the property against which a potential lien could ultimately be filed, the council voted to table the resolution until next month. City officials plan to revise the resolution to address both 138 and 148 Deerfield Drive and the appropriate property owners.
The council also approved the purchase of stage lighting for city events. The lights would cost $4,229.31.
Akers said the equipment would be used for events including Fourth of July activities, Food Truck Friday, Praise in the Park, and Christmas festivities. Renting comparable equipment would cost approximately $2,100 per event, he said, meaning purchasing the equipment could pay for itself after roughly two events.
The lighting will also be compatible with the city’s existing stage equipment.
During the mayor’s comments, Akers announced that a pre-construction meeting for the renovation of the city’s old fire station is scheduled for 10 a.m. October 6 at City Hall.
The meeting will include engineers, architects and contractors involved in the project.
With no further business on the agenda, the Monticello City Council adjourned at 6:42 p.m.
