State applauds Earle efforts to solve city’s water finances

State applauds Earle efforts to solve city’s water finances

Water manager: ‘ We are trying to take care of our own business’

news@theeveningtimes.com

State officials gave Earle Water Department high praise for raising water rates to get its finances back on track without asking for state help.

Water Department Manager Danny Clark said he and Mayor Sherman Smith recently attended a Arkansas Rural Water Association Task Force meeting and were singled out for recognition by association members. “We didn’t go down there with our hands out,” Clark said. “The legislators were very pleased with the way we are trying to maintain our water system. I think that made a bigger impression on them than anything else that went on in that meeting. I was quite proud of us. We watched other towns it seemed beg for money. We are trying to take care of our own business.”

Earle recently raised water rates by eight dollars a month from $11.75 to $19.75 after it fell behind on payments to the city.

The water department has seen years of declining revenue due to a loss of customers and owes the city $80,722. The money goes in to separate accounts to pay off loans for the water tower and a water line to the school, and also for yard waste, mosquito control, and garbage.

Since 2008, the customer base has shrunk from 820 to about 626 and revenue has fallen off from $868,000 to $618,000.

Clark said the city has a water tank that will need attention soon which will be an expensive fix.

“It won’t be that many years,” Clark said. “When we get caught up we will put money away for that exact kind of thing.”

Mayor Sherman Smith said the state has made it clear to rural water associations that state aid won’t be as forthcoming in the future, and that it is important that they take steps locally to solve their water problems.

“There is an overwhelming burden on the state to fund these water systems,” Smith said. “That’s why they have set up this task force. What they are trying to do is find out the financial shape of these rural water systems in these small communities so they can get an idea on how bad the situation is. They are going to put pressure on these cities to raise rates because there is just not enough money to go around for the state to fund all these projects.”

Councilman Kenneth Cross asked how long Clark thought it will take to get the accounts caught up.

“We are getting caught up?” Cross asked. “It’s not going to take forever to pay this off?”

Clark said all of the department’s bills are being paid as a result of the rate increase, and they are also making payments on the loans.

“I’m going to say at least a year,” Clark said. “And that’s thinking positive.”

Smith said the rate increase will allow the water department to not only get caught up, but to build a reserve that will allow them to maintain the water system into the future.

“We’ve got to catch up and maintain,” Smith said.

“I don’t want to have a water department that is strapped for cash. There are going to be some things that we have to do on a large scale. If we can build up a little something, that will allow us to take care of those things. Water is one of the most significant things a city can have. If you are going to slack on something, I don’t think you want to do that to your water system. So hopefully we will have a surplus some day and we won’t have to impose further on the people. They were also proud that we made them pay it back.”

By Mark Randall