Water and sewer rates to climb 3 percent in Gentry

GENTRY -- Water and sewer rates will climb by 3 percent in Gentry beginning with the first billing cycle due in January. The rate hike adopted unanimously by the city council on Dec. 1 is a part of a planned increase to help the city stay ahead of rising costs and provide funding for infrastructure upgrades and improvements in coming years.

The increase sets minimum water rates for the first thousand gallons for water customers with a 5/8-inch to 3/4-inch meter at $12.54; $4.89 per thousand for the next 14,000 gallons; $4.70 per thousand for usage between 15,000 and 50,000; and lower rates for usage above 50,000. The rate structure also sets higher minimum rates for users with larger meters. A full rate schedule is available at city hall.

Sewer rates will also rise by 3 percent, with $7.15 being the minimum sewer charge for water customers using up to 1,000 gallons.

The rate increase is necessary, according to David McNair, the city's public works director, to keep up with rising costs of water service and to provide for system maintenance and upgrades. McNair said the scheduled increase has only covered increased costs for two of the past three years, with savings for upgrades realized in only one of the years since the annual 3 percent increase has been in place. He hoped the increase would eventually make it possible for the city to have needed money on hand for future upgrades and improvements.

In other action, the council approved a resolution to terminate the city's 457 deferred compensation plan. The action, according to city attorney Jay Williams, gives city employees who have funds in the plan the option to leave funds there, to roll those funds over to another qualified plan or to withdraw funds with early withdrawal penalties. Williams said the action essentially terminated the city's control over the plan and allows employees to deal directly with the plan administrator in managing their retirement funds.

The action follows the city's decision to participate in the Arkansas Public Employees Retirement System rather than in its own retirement savings program.

The council also approved moving ahead with participation in a geographically updated population certification program to update city population numbers based on the 2010 U.S. Census to include lands annexed into the city as a result of a special election held in conjunction with the general election last month.

With election results certified, the program will certify the number of residents taken into the city based on U.S. Census figures, increasing the city's share of tax revenue. According to Gentry Mayor Kevin Johnston, cost for the program is $1,969. Increased revenue will likely pay for the cost of the population adjustment in about a month. Johnston estimated the recent annexation will increase Gentry's population figures by more than 100 people.

Mayor Johnston provided the council with his proposed budget for 2015. A council budget committee meeting to begin the review process was set for 6:30 p.m., Dec. 16, in the conference room at City Hall.

Johnston also provided council members with a detailed plan for walking and biking trails prepared by the Northwest Arkansas Regional Planning Commission. Johnston asked council members to review the plan which seeks to incorporate Gentry's trails and features into a regional trail system.

General News on 12/10/2014