At the Thursday, January 11, 2024, Public Services Committee meeting, Kelly Hale, HSVPOA General Manager, said, “We have to help the community understand that the whole state will conform to Act 605. Click here to read “How Act 605 Will Affect Hot Springs Village.”
Act 605 is Oversight of Retail Water Providers and primarily came about to provide oversight of retail water providers in Arkansas. One bill component is that Arkansas water providers must charge what is needed to cover day-to-day operations and improvements. Hot Springs Village wastewater also falls under Act 605 because the sewer service and water facilities are operated as a joint and integrated undertaking and fall under a single audit.
Hale said, “Outside the fence lines, the water and sewer rates are substantially higher than the Village rates. When Act 605 comes into effect, people in parts of the state will pay much higher rates than they are now.”
“We have been conditioned to low rates. The Coopers had their checkbooks out for many years to build this environment. We are giving you an honest talk. We are being honest with you about things.”
Kelly Hale, HSVPOA General Manager
Hale and HSVPOA Public Services Director Ken Unger have regularly visited Little Rock to talk to the lawmakers in an attempt to receive monetary help. This has not been done before.
“At the end of the day, folks, this is a national problem that we are having to address. We aren’t getting any help.”
Kelly Hale, HSVPOA General Manager
“I communicated with a gentleman this morning and explained to him, ‘We are a private corporation that gets none of our tax dollars back. This is how it works here,” explained Hale.
“We are talking, $60, $80 M. People complain in emails about paying an extra nickel or 75 cents. There are very smart people living here and we need everyone to listen. We don’t need to crank this thing way up, but we are going to need to go up. We have things to pay for here and if we want to sustain the longevity of the community, we can’t be like the previous two or three decades. I am not here to disrespect those people, but they kicked the can down the road – just like politicians often say, ‘It didn’t fall apart under my administration, so I did everything right.’ We can’t do that any longer. I am not that type of person.”
Kelly Hale, HSVPOA General Manager
Hale said that he and the Public Services Director, Ken Unger, took their jobs to ensure that the water, sewer, roads, and golf courses received the needed work. Those are the infrastructures that were very close to falling apart.
“It is not that I put golf over any other activity, but golf is our largest asset. Golf is also our largest liability if we lose a course. There are homes on the courses, and people build them there because it is a golf course. There is a lot of logic to what we are doing here, and as I have stated many times, we are taking a blended approach because the community let everything go as long as we did.”
Kelly Hale, HSVPOA General Manager
We must go out, be honest, and talk to our neighbors. Everybody knows that $60 a month dues for the 27th largest city in Arkansas will not fund everything. Let’s do the math.
Not one to mince words, Hale said, “We are a co-op. That is the biggest message I need the Public Services Committee to put out there. The Coopers turned this community over to the members. You have to be a member to live here. That means it is a privilege to live here.”
“People need to stop thinking of the POA as a government entity that everyone should fight against. The POA is the members.”
Kelly Hale, HSVPOA General Manager
By Cheryl Dowden
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Nothing, and I mean NOTHING ,costs now what it did twenty years ago (which is approximately when we purchased our property in the Village). We need to keep up with the actual costs. Does that make anyone happy? Well, no- because we are paying significantly more for everything including groceries. The “kicking the can down the road”situation did not work previously, nor is that the path we should follow now. Some households may have to make adjustments re: water usage. Can you imagine what that situation is like in California or some other locale with water shortages? Do any of us want to make adjustments or pay more? No, but that is not being realistic.
I think the statement below needs explanation… Our 2024 POA dues are $110 per month.
“We must go out, be honest, and talk to our neighbors. Everybody knows that $60 a month dues for the 27th largest city in Arkansas will not fund everything. Let’s do the math.”
Water and sewer numbers need to be clearly explained, line by line, to help us understand how our water and sewer rates are substantially lower than communities outside the gate. Let’s compare to Hot Springs, Benton and Little Rock for water, sewer, including excess usage charges.
We need to keep asking WHY we don’t get our tax dollars back. We may be a private corporation but we are also property owners in Saline and Garland County according to the tax laws. We are also consumers in the counties outside our gate and the sales taxes we pay are contributing significantly to those counties. Even our purchases in our “private corporation” are taxed by the counties.
Every business is claiming inflation is causing them to raise our fees. Food, medical and insurance costs have all increased and will most likely not decrease. POA management increased our fees by 6% to 10%
this year. Let’s just be sensible about the timing and amounts that are put forth.
It’s great that we have management that are finally acting on the opportunities that The “smart people living here” knew were being ignored. Let’s not just think there are not still opportunities in all areas to offset these headwinds before raising our fees.
Hi George,
Thank you for commenting.
Mr. Hale was referring the the past dues. I am sure he knows what the current POA dues are. While I cannot speak for him, I “believe” he was saying that some people are bemoaning the fact that the dues are no longer $60 a month.
Ken Unger has some of the numbers on the areas outside the gates. You are also welcome to do the research to determine these numbers. I would love for you to do this research and write an article for me to publish. I would enjoy working with you.
I understand your frustration with “why we don’t get our tax dollars back.” I too am frustrated with this, as are many of us.
Thanks again and stay safe and warm in this inclement weather.
Cheryl Dowden
Cheryl,
Don’t know why he feels he needs to explain that we are way past $60 fees. He needs to look forward on how to explain to the current members why we need to increase utility rates. We could spend hours talking about the failures of Twiggs and Nalley, but that would not help plan the future. What Cooper did is all behind us and anyone wanting to refer to that is looking for excuses.
Why would I attempt to do this study. This why we have a public services director, GM and CFO. Using terms like “substantial” and “much higher” are vague, business 101 would teach you that explain increases, you need to provide data.
If rates are changing across the state because f the new act, then Mr. Unger should have access to that information before anything is published for me to research.
Are we going to be expected to comply on day 1 of this act, ramp up overtime, or possibly excluded from some of the requirements? Many questions need to be asked by our managers.
It is not a matter of “frustration” about tax dollars, it is a matter of good business sense to use analysis to determine what stops us from making the case about our taxes. Again, this is why we pay the salaries of the HSV corporation staff. We should not be confused by effort vs results.
Thanks for all you do. Appreciate the chance to share opinions publicly.
George, I am not putting “blame” on anyone, but we have a lot of infrastructure that needs repair. We are here because of shortcomings in the past, but it really matters not whose fault it is. I think it does need to be explained though, why we have so much to catch up on. You and I and many others understand, but a lot of the new people don’t. The dues were artificially low for a long time. First Cooper picked up the slack. That is not unusual for a developer to do. Developers want to keep assessments low because low assessments are more attractive to potential buyers. Then CCI turned the Village over to property owners and I think there was not always a lot of trust in the POA. Again, this is common for POAs. It is what it is and we have to play catch up now. Your understanding of this may be better than mine, and I would love to hear your take on it.
As far as you doing a study, I don’t know why you would attempt to do one. Maybe to write a nice article for your fellow property owners to read. It is what I do all the time. Research and write. Why do I do it? To help out. But no one is trying to force you to write anything. I just thought I would enjoy working with you. You have always shown yourself to be an intelligent and thoughtful person.
I am not privy to when our rates are going to change or the timeline on when we must comply to Act 605. But I will be watching, as I am sure you will too. If it is any consolation, Both Kelly Hale and Ken Unger are dedicated to doing things as economically as possible. This I do know from watching and working with them.
I appreciate your thanks and I always enjoy reading your thought-provoking comments.
“People need to stop thinking of the POA as a government entity that everyone should fight against. The POA is the members.”
Kelly Hale, HSVPOA General Manager
I tell people this until I am blue in the face. Many people don’t listen or don’t believe it. In addition, our assessment fees are NOT taxes.
Thank you! – Cheryl Dowden