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The latest in a string of state- and federal-funded water projects include multimillion-dollar endeavors in Gravel Ridge, Eureka Springs and Bentonville.
The Arkansas Natural Resources Commission approved more than $66.5 million for water projects Wednesday, including a $2.5 million loan for improvements to Gravel Ridge’s sewage collection system and a $6.1 million loan for a wastewater rehabilitation project in Eureka Springs.
The highest amount approved, $55 million, will provide additional funding to ongoing capital improvements and expansions to Bentonville’s water system.
“Today’s announcement continues my administration’s commitment to making sure every Arkansas community has access to safe drinking water,” Gov. Sarah Huckabee Sanders said in a press release after the commission meeting. “Thank you to the agency staff and local officials who are working in close partnership to develop sustainable solutions to water infrastructure in all four corners of our state.”
The projects will affect nearly 61,000 Arkansans.
Plan or penalty: The next step in Arkansas city’s path to better water infrastructure
Water infrastructure in Arkansas has become a primary concern in many communities as officials operate fragile and antiquated systems. From critical well issues in Helena-West Helena in the Delta to a leaky system in Marshall, funding has offered locals a path toward improved drinking water and wastewater systems.
“Reliable water and wastewater infrastructure is vital to both the quality of life for every Arkansan and the strength of our communities,” Agriculture Secretary Wes Ward said in a statement. “Governor Sanders’ continued leadership on water issues ensures that Arkansas is well-positioned for future success.”
With Wednesday’s approval, Eureka Springs will join a growing list of Arkansas cities and towns that have been approved for loans or awarded grant funding.
“We appreciate all considerations for this project. We are, like many other small cities, in dire need of repair of our wastewater system,” Mayor Robert “Butch” Berry told the commission over a video call.
In addition to the city’s $6.1 million loan, commissioners also approved $100,000 in emergency funding for Eureka Springs. According to a project description submitted to the commission, the emergency request will reimburse officials for repair and resolution of a leak in the “existing sludge storage basin.”
The emergency funding qualifies for principal forgiveness, meaning the city does not have to pay back the state. Emergency funding can only be used for construction purposes, said Debby Dickson, Natural Resources Division water development section manager.
The improvements will come with a cost to Eureka Springs’ roughly 2,000 residents.
According to documents from the Natural Resources Commission, staff recommends officials increase their sewer rates by either 91% or 173%, which would increase an average $31.84 bill to $60.81 or $86.92.
Bentonville’s $55 million loan will add to a previously approved $97 million loan.
A representative from Bentonville’s project told the commission Wednesday that construction estimates for the project started in 2022 and have gone up year after year.
“In 2024, instead of coming in around $95 million or so that the engineers have estimated, it was coming in at $140 million for construction only,” Mike Bender said. “…Our plant is very landlocked, so a couple of big things missing is shoring, there’s a lot of extra concrete working around the existing infrastructure.”
Initially projected to be a 36-month project, Bender said it has been extended to take about 50 months, which also increases the overall cost.
“It’s a big hit,” he said.
The project is expected to raise the monthly wastewater rate in Bentonville from $39.16 to $58.35, according to a commission recommendation.
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Increased costs
Over the last two years, Dickson and the Natural Resources Commission have distributed nearly $3 billion to Arkansas towns and cities for improvements to water systems, officials said Wednesday.
While commission members praised Dickson’s work, they also raised concerns about increased costs for the projects. Chris Colclasure, director of the Natural Resources Division, said it’s unlikely the state saved any money in the process.
“It cost way more, but there were more grant dollars,” Colclasure said.
An increase in federal funds allowed states nationwide to allocate more funding for water-specific projects, but with so many projects mobilized across the country, Dickson said contractors have upped their prices.
“We’ve approved so many loans, there’s all the [American Rescue Plan Act] money out there, there’s infrastructure money — there’s a lot of money on the street right now for these types of projects,” Dickson said. “So the contractors are getting to pick and choose, and if they’re busy, they might put in a higher bid.”
Dickson said contractors may not be looking to secure the project, but submit a high bid amount to stay “in the running.” In some cases, the inflated bid may be the only one received. If chosen, the budget for small projects can increase significantly and stretch the available workforce thin.
Out-of-state workers are also taking on Arkansas projects less frequently because they have enough to do in their home state, Dickson said.
Obtaining quotes for material costs is also more difficult today than it was before the COVID-19 pandemic, Dickson said. Whereas past quotes used to be good for 30 to 120 days, Dickson said “you can’t get a quote that’s good past today.”
Commissioners on Wednesday also granted Dickson and her staff the authority to transfer condition-specific funding from general loan allocations to more detailed funds that offer applicants principal forgiveness. Dickson said her staff will follow requirements set by the Environmental Protection Agency when they consider shifting funds.
Sanders on Wednesday appointed David Gilbert of Mena to the Natural Resources Commission, filling a vacant position. Gilbert’s term will expire Jan. 14, 2029.
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