Swelling water-sewer budget puts squeeze on departments

Wednesday, June 22, 2011

— An amendment to the town’s budget was passed on its first reading June 14, which would change the water budget to reflect scheduled loan repayment to the Arkansas Natural ResourcesCommission for the town’s water and sewer system.

Though the town’s water and wastewater budget for fiscal year 2012 - July 1, 2011 through June 30, 2012 - remains unchanged under most line items from the 2011 budget, estimated expenses for water purchases were up from $100,000 to $120,000 and scheduled repayment of water system loans increased from $228,702 to $335,631. Wastewater loans also increased from $362,620 to $421,130.

Some of the water and wastewater system loans had been deferred, but payments on all deferred loans are scheduled to begin by December of 2011.

The amended budget changes the amount the town is putting into thewater and wastewater system to subsidize costs from $126,864 to $313,200.

“This is the worst it’s going to get,” said water and wastewater supervisor James “Butch” Wiand, somewhat apologetic for his department’s drain on the town’s overall budget.

Because of the slowdown in the economy and in the growth of the town, other departments are expected to have budgets cut to help cover the cost of loan repayments for the town’s water and wastewater system. Until more water and sewer customers begin using the system, the town will be forced to subsidize the department to repay loans it took out to build the systems.

Wiand also expressed concern that nothing is built into the budget to cover major expenses should expensive pumps or motors need to be replaced.

The town council also passed two resolutions, one to appoint Wiand as a director and Mayor Stacy Digby as an alternate director for the town of Highfill to serve on the board of directors of the Benton-Washington Regional Public Water Authority for a one-year term, and a second to transfer excess sales tax revenue from the water improvement fund to the town’s general fund.

A third resolution to appoint a person to fill position three on the park commission was tabled until next month.

Vernon Reams, the town’s street department supervisor, reported that a resident of the town asked to pave a portion of Daniels Road between his home and a portion of road which the Silver Meadows Subdivision is expected to pave at some point in the future. The county currently maintains that portion of road, he said.

Reams also reported that DECCO Paving would start work on the Hendrix Road project in three weeks. Hendrix Road is being repaired due to damage from heavy truck traffic during the construction of the Northwest Arkansas Conservation Authority wastewater treatment plant. NACA has agreed to pay 90 percent of the $25,000 cost.

This is the worst it’s going to get.

-Butch Wiand

News, Pages 2 on 06/22/2011