The Mountain Home City Council is set to consider significant measures on water and sewer rates, as well as a rewrite of food truck regulations, during its meeting on August 20. Both proposed ordinances stem from financial and regulatory requirements tied to city utilities and business operations.

The council session will begin at 5 p.m. in the Municipal Building at 720 Hickory Street. According to City Clerk Scott Liles, both ordinances, each spanning seven pages, will likely be introduced by title only for efficiency before discussions proceed.

### Utility Rate Increases

Mountain Home water and sewer customers could see monthly bills rise by $4 to $6 on average, depending on usage, under the proposed rate adjustments. The new rates, if approved, would take effect for services metered after September 15.

The ordinance proposes a 10% increase in water rates, a 16% hike in the debt service charge on water bills, and a 5.5% escalation in sewer rates. These adjustments include a 2.2% Consumer Price Index (CPI) adjustment for the South Region.

City figures estimate in-city residential customers with 3/4-inch meters would see their monthly water minimum rise to $20.19, while the sewage minimum would increase to $34.30. A customer using the average of 4,500 gallons per month would pay an additional $5.70, while those at the 2,000-gallon minimum would pay $4.05 more. Steeper increases are projected for commercial and out-of-city customers.

According to a June 4 letter from engineering firm Garver, the increases are necessary to comply with Act 605, a state law requiring municipal water utilities to be self-sustaining. Rising operational and capital expenses, including a 29% jump in water system operating costs and new bond repayments, are key factors driving the rate hike. Public Works Director Steve Hill noted that deposits into a depreciation account mandated by Act 605 would also rise sharply in 2026.

On the sewer side, prior rate increases in 2023, 2024, and 2025 have stabilized the system, which previously relied on water surplus funds to cover deficits. Additional adjustments are anticipated after Act 925 begins requiring similar depreciation account contributions for wastewater systems in 2030.

Wholesale water rates would also increase significantly, with the charge per 1,000 gallons climbing by nearly 25%, affecting buyers like Cotter, Gassville, and the Northeast Water Authority.

### Food Truck Rules Overhaul

The council will also revisit food truck regulations, proposing to allow trucks to remain parked indefinitely on private property with owner approval. Current rules limit trucks to 30-day stays.

Under the new ordinance, trucks must remain “readily movable” with valid licensing and functional tires. Permanent structures like porches and storage buildings would be prohibited, although trucks could use temporary accessories like awnings and wooden steps. Portable fuel tanks would also require fire marshal approval.

The measures seek to clearly differentiate food trucks from mobile vendors, such as those selling non-food merchandise, which will no longer be allowed to operate in food truck courts.

The ordinance specifies that food truck courts must be located in commercially zoned areas and maintain at least 50 feet of distance from existing restaurants. Courts would also need restroom access, off-street parking, and designated clearance between vehicles. Penalties for violations would include fines of up to $300 per day.

### Additional Agenda Items

Also under consideration are two rezoning requests and a resolution authorizing Mayor Hillrey Adams to apply for a $400,000 Delta Regional Authority grant. Funds would be directed toward replacing the emergency generator at the city’s water intake plant, with a $100,000 local match pledged.

In addition, updates from city departments highlight ongoing public safety efforts, progress at the Community and Aquatic Center, and rising overtime costs for firefighters amid staffing challenges. Police Chief Eddie Griffin plans to address questions about the city’s Flock cameras during an upcoming radio appearance.

The meeting’s packed agenda reflects the city’s forward momentum on infrastructure and service updates, with potential impacts on residents and businesses alike.