HOT SPRINGS – Last week’s lengthy, three-anda- half hour Hot Springs City Council meeting covered wide range of topics, including a discussiononly agenda item regarding a DANR-offered loan to cover the first phase of the planned improvements at the Wastewater Treatment Facility. The loan offer totals $9.17 million at 4% for 30 years.
Despite being approved for the loan, city officials were disappointed in the fact that Hot Springs was not considered for either a grant or principal forgiveness to complete Phase 1 of the eventual two-phased project. The second phase of the project, which will have its own separate funding request later in the process, will be for approximately $18 million. If the city is forced to rely on loans for 100% of the two phases – totaling around $27 million – users would likely need to pay an additional $90 to $100 per month until the two loans are paid back.
Since learning about the loan offer from the state, Mayor Bob Nelson said the city had since reached out to them and asked how the state arrived at its decision to offer grants to some communities and not others, and also what Hot Springs could do in the future to better position itself for more favorable assistance. He then read a letter the state had sent back which described how Hot Springs, at $29.70 per month, had the lowest user rates of any of the communities which applied for sanitation improvement funding. The cities which were approved for subsidies, had rates for more than $72 per month. Because of this, the state determined that the City of Hot Springs has room to take on additional debt and increase its user fees.
“So our current user rates, though we have tried to keep them low over the years, have really put us in a situation, where – in the eyes of the state – we’re not generating enough revenue ourselves to be eligible for some of these grants, (principal) forgiveness or low interest,” Mayor Nelson said.
In regards to how the City of Hot Springs can put itself in a better position for future funding requests, the response from the state was, “there really is nothing the city can do.”
“The funding recommendations are based on the city’s financial position and ability of the community to handle operation, maintenance and debt expenses while looking at rate impacts,” read Mayor Nelson from the letter received from the state. “Hot Springs has the ability to take on a fairly substantial amount of debt and keep the rates at or below the rates of other communities. Communities have tried to artificially inflate the rates in hopes of receiving subsidy. DANR has discouraged this action and views the excess revenues as available for debt service, if it is not necessary for long-term costs.”
Councilman Dave Burris responded by saying, “It almost sounds like a punishment for being good stewards of our community’s money.”
“It is a reminder,” added Finance Officer Misty Summers-Walton, “that these repairs, and putting them off and keeping our costs low, got us here, where we need a substantial investment in the improvements of the facility.”
Mayor Nelson said the official loan documents and offer from the state is expected to be received in the near future for the council’s approval. He also said that the city would be meeting with the Romey family later in the week to discuss a new agreement for use of their land to continue and house the lagoons.
Prior to delving into a long list of New Business agenda items, the council had considerable discussion before passing – by a margin of 7-1 – the first reading of a traffic ordinance revision pertaining to winter RV parking.
The primary revision to Ordinance 1286 allows the Streets Superintendent and/ or Police Department to determine whether or not an RV is deemed an obstruction or hazard to snow clearing operations when parked or stored on a public street or alley between November 1 and March 31. This change replaces wording which specifically had said “no recreational vehicle or trailer can be parked on any public street, ally or public property (including right of way)” during the same time frame.
Councilwoman Debra Johnston said the need for the revision and more leniency was in part due to the fact that some city streets are less developed and do not pose an issue for RVs to be parked on them, in regards to snow removal or line-of-sight issues.
Councilman Craig Romey, who was the lone vote of ‘no’ against the revision, expressed concern about the possibility of the aforementioned city officials making their decision to move vehicles during the middle of the winter. City Administrator Aerial Allison said that those decisions would be made prior to November 1 and would make the RVs subject to towing by that date.
Two resolutions were also passed unanimously ahead of New Business, including one that authorizes an 80/20 Recreational Trails Program grant application to repair and replace the city’s three historic staircases. City Administrator Allison said that if the city is successful in their application, its 20% portion would be about $215,000 of the estimated cost of nearly $1.1 million to repair all three. She however said that she doubted the city would receive all $859,000 at once, but was hopeful that they could at least get a portion of that to repair one of the staircases initially.
Mayor Nelson reminded the council that the stairs by the Episcopal Church, and near Kidney Springs, are the first ones needing to be addressed, followed by the prioritization of ones by the fire department and then ones leading to the Pioneer Museum as third.
Allison said the city should know whether or not they receive a grant by this summer, and if the city could then budget in 2027 for at least $215,000 to address the stairs, they could fix at least one of the staircases regardless. She added that there would be funds available in the city’s 212 Fund for such improvements.
Councilman Romey expressed concerns about budgeting for stairs when there was a need to fix the wastewater treatment facility (WWTF), but was reminded that those improvements are required to be paid by user fees. Councilman Bill Lukens agreed with Allison’s belief that there should be funds in the 212 for the stairs, with enough remaining to still adequately address street improvements as well.
A second passed resolution created a new city rate option for a Nuisance Cleanup Rolloff which Allison said was part of the city’s plan to restructure citywide cleanup operations, which also included reducing the fall free dump week down to just one weekend day, as opposed to an entire week. The spring cleanup in early June is still planned to be a full work week, Monday through Friday.
This new resolution would allow a cost-share opportunity for city residents to pay a fee at city hall for the opportunity to dump items into a roll off dumpster at the city shop. The city would then use those fees to cover the cost of the roll off, which is $1,000 for a full 30 yard dumpster, $500 for a half dumpster or $250 for a quarter dumpster.
Communications from the Public opened the council meeting as Frank Birkholt returned to the microphone after speaking to the council at the March 16 meeting, in regards to the city seemingly taking a stand against uranium.
Birkholt began by reading a transcript from some previous council meetings when it was generally agreed upon to send a letter of support for clean water and opposition to uranium mining by only utilizing previously passed resolutions to demonstrate the city’s position on the topic.
Birkholt then read some excerpts from the letter that was recently sent to the U.S. Forest Service and signed by City Administrator Allison. Those excerpts, Birkholt said, contained new information and commentary against uranium mining, which was not part of the previously passed resolutions, nor was it part of the nuisance ordinance passed by Fall River County voters in 2022.
When asked by Councilman Burris what he was asking of the city, Birkholt replied by saying, “I’m saying you did this illegally. I’m saying the letter to the (federal government) has materially false statements in it. I don’t think it’s wise for city councils to make materially false statements and I don’t know whether or not you’ve exposed yourself to liability.”
After some additional comments from Birkholt in regards to how the city council overstepped it’s authority to speak on behalf of the voters of Fall River County and their intentions, Councilman Lukens said, “I can’t speak for the Council, Frank, so I’ll just speak for myself.”
“I don’t know what we can do for this specifically,” Lukens added. “Going forward, I take what you say very seriously and will take that warning going forward. But let me just be real plain. You are one of the few voices (like this) that have come before council. We’ve had a lot of voices regarding the opposition to uranium mining and I think that has influenced this. Whether or we did our own homework, I don’t know. If we didn’t, we should have.”
Regarding Birkholt’s claim that the city’s letter to the Forest Service was done illegally, Mayor Nelson said the city will visit with it’s attorneys to consider that possibility.
City Administrator Allison then said that she did not disagree that the letter, which the council approved to send, includes statements that were not part of the previously passed resolutions and that the city, “should probably be careful going forward (on) what we pick sides on” and to do “our own homework, instead of just relying on who comes to talk to us.” She also said, when crafting the letter, she did not apply any additional homework on the topic of uranium herself and also acknowledged her use of AI – specifically Chat GPT – for help in wording the letter.
After Communications from the Public, Mayor Nelson read a post on a proclamation making March 29 Welcome Home Vietnam Veterans Day in Hot Springs. After that, the council heard quarterly updates from seven different individuals, which accounted for about one-third of the three-and-a-half hour meeting. Those who gave updates were as follows:
• Presston Gabel with The Mammoth Site spoke on behalf of the Business Improvement District and said the organization will once again spend $65,000 in advertising with the state, which will match it for a total of $130,000 to help bring tourists to Hot Springs.
• Police Chief Ross Norton gave a quarterly update for January – March 2026 (see City Scoop guest editorial on page A4).
• Seth Stevens with the Hot Springs Volunteer Fire Department gave his quarterly update and then fellow volunteer fireman Ken Tonsager provided a history on the fire hall and spoke to the council about the city and the possibility of transferring ownership of the fire hall to the department.
• Southern Hills Economic Development Corporation (SHEDCO) Executive Director Andrea Powers gave her quarterly update and covered a wide range of topics including grant opportunities for which she has applied.
• Amber Sierra, Executive Director with the Hot Springs Chamber of Commerce, summarized the events over the past few months and noted upcoming activities including the Salute to Valor on Memorial Day weekend.
• Ben Sharp summarized his recent trip to Pierre where he and other intervenors helped to bring a uranium exploration permit hearing to Hot Springs in May.
• Wesley Foss, the city’s Code Enforcement Officer/ Building Inspector, spoke about his plans to help form a non-profit called “Bridging The Gap For Southern Hills” which will help local property owners clean up their property and/or transition into better housing.