FORT SMITH, Ark. — Even with a five-year extension for needed sewer improvement work in Fort Smith, completion of the work required by a federal consent decree could lead to significant sewer rate increase over the next several years.
After years of failing to maintain water and sewer infrastructure to federal standards, the city entered into a federal consent decree with the United States Environmental Protection Agency (EPA) and U.S. Department of Justice in late 2014. The consent decree required the city to make an estimated $480 million worth of sewer upgrades over the course of 12 years.
Over the past six years, the city has spent approximately $127 million in capital costs for required improvements. That does not include work done prior to the consent decree, work still needed, or the operation and maintenance program the city has implemented that will outlive the consent decree, said Fort Smith Director of Utilities Lance McAvoy.
The city spent about $200 million on storage tanks and equalization basins to reduce wet weather sanitary sewer overflows, which are the basis for the consent decree requirements. If the city has to do what is demanded of the consent decree within the timeframe set to be in full compliance, it will cost the city well over $600 million in capital cost because of additional areas rated a four or five that have to be fixed within four years of detection and inflation, McAvoy said.
If no other funding can be found, such as a sales and usage tax, bond issues, grants or federal funding, it would take an increase in sewer rates to fund the work, McAvoy said. That rate increase would need to be about 11% annually for the continuation of the decree.
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