Speech to Helena-West Helena City Council on Water Rate Increase
Opening
Mayor Franklin, Mr. Valley, and honorable council members,
Thank you for giving me the opportunity to speak today. Out of respect for your time, I will do my best to keep my comments brief and to the point.
In my talk today, I’d like to address three key issues that I believe are crucial for our community. First, I’ll discuss the proposed water rate increase. Second, I’ll address the critical problem of water loss in our system. And third, I’ll talk about the need for accountability as we address these challenges.
Background
It’s my understanding that during today’s meeting, you’ll be reviewing a new ordinance to increase our water rates. I’d like to offer some comments and recommendations for you to consider as you deliberate on this important piece of legislation.
Rate Study Findings
Last week, I had the opportunity to read the rate study dated July 2nd. This study was written by Mr. Dennis Sternberg from the Arkansas Rural Water Association. I understand that his recommendations will largely inform the ordinance you’re considering today.
Let me share with you some key points from this study:
Currently, our water rate stands at $2.73 per 1,000 gallons. Mr. Sternberg is proposing to increase this rate to $7.39 per 1,000 gallons. This represents a substantial increase of 171%.
Since this is an increase of more than 50%, the study allows for implementation of this increase over two years. In the first year, we would implement half of the increase. Then, in the second year, we would implement the remaining half.
There are many more details in the study, and I strongly encourage members of the public to read the full report. However, to summarize, the main reason for this increase is clear: it’s necessary to ensure that our water department can support its operations without running a deficit.
I want to state that I personally support a measured increase. I believe it’s necessary to keep our water system solvent. However, I also want to emphasize that while additional funds are crucial, I believe this money alone will not be sufficient to solve the larger issues we face. It’s not just about having more money – it’s about how we use that money. The funds must be efficiently managed to ensure that the necessary work is completed.
The Water Loss Problem
Now, let me turn to a shocking statistic from Mr. Sternberg’s report. Last year, our system treated and pumped just over 1.4 billion gallons of water. However, only 380 million gallons were metered and charged to customers.
What does this mean? It means that 73.5% of our water was lost before it reached paying customers.
I want to repeat that figure because it’s so important: 73.5% of our water is lost before it reaches paying customers. That’s nearly three-quarters of our water, simply wasted.
To put that in perspective, highly efficient water systems typically lose only 5-10% of their water. Mr. Sternberg notes in his report that an effective water system should lose no more than 15%.
Mayor Franklin, in a previous meeting, you mentioned that your water bill was around $380 following the last increase. You also shared that you identified and fixed a leak in your supply line to avoid wasting water and money. That was a responsible action, and I applaud you for it.
However, the system you and this council manage is currently leaking nearly 75% of its water. The cost of this lost water is borne by the citizens of Helena-West Helena, and it’s critical that our leadership addresses this issue.
The Need for Accountability
In the private sector, particularly in large public companies, it’s common for 60-80% of CEO compensation to be tied to performance metrics. This makes sense – when leaders are held accountable for results, they’re incentivized to produce positive outcomes.
If CEOs can be held to such standards, then surely our city leadership, responsible for public funds and critical resources like water, can be held to similar standards of accountability.
Passing an ordinance to raise rates is, relatively speaking, the easy part. The hard part is ensuring that the money is used responsibly to improve the system.
My Urgent Request
This brings me to my urgent request: When you pass this ordinance, I ask that you codify a promise to our citizens. A promise that you will hold yourselves accountable for the results.
A 15% water loss rate is both measurable and achievable. At the end of next year, I ask that you measure your progress and report to the public how close you’ve come to achieving this goal.
To further ensure accountability, I believe your compensation—that of the Mayor, City Manager, and Council Members—should be tied to these results. I propose the following:
- If you miss the target by 15%, you should reduce your salaries by 15%.
- If you miss by 35%, reduce them by 35%.
- If no improvement is made at all, reduce them by 60%.
By doing this, you would show the public that you are willing to be held accountable, just as we citizens are held accountable through higher rates. You would send a powerful message that you are fully invested in fixing this system and that you will share the burden if results aren’t delivered.
Additional Requests
Before I close, I have two more requests I’d like to make:
First, regarding transparency: As we move forward with these necessary rate hikes, transparency is key to maintaining public trust. I urge you to post the full language of the proposed ordinance in public forums like the Helena World and on Facebook. Please do this at least two weeks before the vote. When people have time to prepare and participate in decisions that affect them, trust in the process is strengthened.
Second, regarding timing: I ask that you commit to implementing these rate hikes no sooner than January 1st. This would give the public time to make necessary repairs—fixing leaks and supply lines—before the increase takes effect. Given that the recommended increases total 170%, it’s only fair to give citizens time to prepare.
Closing
Members of the council, I urge you to incorporate these accountability measures into the rate increase ordinance. Show our community that you’re committed not just to raising rates, but to actually fixing the underlying problems in our water system.
Thank you for your time and for your careful consideration of these important matters. I appreciate your transparency and your willingness to engage with the public as we chart a path forward to fix our struggling water system.
By implementing these measures, we can work together – citizens and leadership – to create a more efficient, accountable, and sustainable water system for Helena-West Helena.
Thank you.