TEXARKANA, Ark. - During a meeting Monday, the city Board of Directors approved a water and sewer rate increase that will increase the average Arkansas-side Texarkana Water Utilities customer's bill by about 6%.
With little discussion, the Board voted six to one, with Ward 2 Director Laney Harris casting the only no vote, to approve an 8.5% rate increase. The average resident's monthly bill will go up $3.34, from $64.73 to $68.07. It will be the first rate increase for Arkansas-side residents since April 2009, when the water rate went up 20% and the sewer rate 15%.
Harris said he was representing constituents who had told him the increase was too high.
The Board then voted unanimously to approve TWU's Fiscal Year 2021 budget, including revenue projections based on the new rate.
On a four-to-three vote, the Board chose not to approve a 10% increase in the residential water and sewer rate during its previous meeting, on Jan. 19, and tabled approving the budget because it was based on that higher rate. TWU's original proposal was a 17.75% increase requested to keep cash reserves at a minimum of 60 days' expenditures after lower than expected revenues in recent years.
The 8.5% rate bump will leave 33 days' worth of cash in reserve at the end of Fiscal Year 2021, four days less than the 10% increase would have left, TWU Finance Director Jim Cornelius said.
Spending and staffing efficiencies, as well as bond refinancing, will reduce expenses enough that no major projects would be abandoned during the fiscal year, while consultants conduct a rate review study and make further recommendations.
Fireworks Ordinance
After lengthy discussion of proposed changes to the city fireworks ordinance, final approval of the measure was tabled pending resolution of various concerns raised about it.
Ward 1 Director Terry Roberts sponsored the measure because of constituent complaints he received regarding a fireworks display during a wedding reception Jan. 23 at Texarkana Country Club. The noise of the display prompted 911 calls, caused pets to run away from their homes and triggered an episode of post-traumatic stress disorder for one local veteran, Roberts said.
The main point of the ordinance changes would be to provide public notice that fireworks displays will be happening, Roberts said. People granted a display permit would be required to publish notice of the display for two consecutive weeks.
Mayor Allen Brown said he was concerned that such notices would give rise to objections from the public with no process in place to account for them. Ward 3 Director Steven Hollibush objected to restricting fireworks displays to Saturdays and Sundays. Resident Dennis Young pointed out that the proposed amendments as written would forbid any rescheduling of permitted displays.
The Board could take up an amended ordinance as soon as its next meeting.
Airport Authority Ordinance
The Board also voted unanimously to approve changes to the ordinance governing the Texarkana Airport Authority, which makes decisions about Texarkana Regional Airport.
The changes are meant to help move the airport to financial self-sufficiency and give the Board oversight of the Authority's budget, to which the city contributes in partnership with Texarkana, Texas, Brown said. The Texas-side City Council is expected to take up an identical measure during its meeting next week, Brown said.
The changes add a ninth, at-large member of the Authority's board, subject to joint approval of both cities. Each city will continue to appoint four members to the board.
The Authority is required to establish its own revenue fund and purchasing policy, including competitive bidding procedures. Any expenditure exceeding $25,000 would require joint approval of both Texarkanas' city managers.
The Authority would have to hire an executive director and develop a strategic plan that must periodically reviewed. It would also be required to retain its own legal counsel.
The amendments also include an appeal procedure for people who claim Authority policies have caused them harm. Both cities' city managers would review such claims and decide whether to take any action.
Rezoning Requests
The Board also unanimously approved two rezoning requests, including one that would allow expansion of popular local business Three Chicks Feed, Seed and Cafe.
Three Chicks' owners have purchased a nearby parcel of land, at 4050 Road, and plan a drive-through fried fish restaurant or similar business there.
The other approval allows the owner of 3021 Will Grear Road to "develop a hobby farm to grow products such as blueberries, and sell agricultural products using the existing buildings," according to city documents.