Hot Springs Board Reviews June Financials, Takes Up Lead and Copper Line Funding Program

The Board of Directors held an agenda meeting on July 30, 2024, covering two items — acknowledgment of the city's June 2024 financial statements and authorization to pursue state grant and loan funding for a federally required lead and copper service line inventory and replacement program — with no spending approved and no votes recorded in the available transcript.

Hot Springs Board of Directors Agenda Meeting Agenda Meeting July 30, 2024 Confidence: Medium Independent — not affiliated with the City of Hot Springs

Published: May 17, 2026 · Last updated: May 17, 2026

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The short version

Finance Director Karen Scott presented the city's June 2024 financial statements for acknowledgment by the Board; no vote was recorded in the available record.
City Engineer Gary Carnahan presented a plan to comply with an EPA mandate requiring cities to inventory and replace lead and copper service lines throughout the water system.
The funding package under discussion includes a $1,837,500 loan with principal forgiveness and a $1,912,500 zero-interest loan repayable over 20 years — both through the Arkansas Department of Agriculture's Natural Resources Commission.
Of the city's roughly 43,000 total water service connections, approximately 15,000 require further research, and between 3,000 and 5,000 may need hand excavation to evaluate the line materials.
The available record does not show a final vote on either item; this was an agenda meeting, and no vote totals are recorded in the bundle.

By the numbers

Total identified spending

Votes taken

includes procedural votes

Unanimous votes

Largest single item

—

Emergency / ratification items

Resident questions unanswered

Major decisions

Acknowledgment of June 2024 Financial Statements

Item: Routine acknowledgment of monthly financial statements (Resolution R24134) — no spending action.
Vote: —
Cost: No cost specified in the record.
Vendor / responsible: Finance Director Karen Scott, City of Hot Springs
Discussion level: Brief Brief presentation
Resident impact: Monthly financial statements are issued to keep residents and city management informed of the city's financial condition; no direct service or cost change to residents from this item.
What the Board said or did: Finance Director Karen Scott presented the statements; the record does not show extended discussion.
What remains unclear: Whether the Board formally voted to acknowledge receipt, or whether it was noted without a motion.
Source: item:1

Lead and Copper Service Line Inventory and Replacement Funding Authorization

Item: Authorization to file for and accept state grant and loan funding (Resolution R24135) through the Arkansas Department of Agriculture Natural Resources Commission for a federally required lead and copper service line inventory and replacement program. The record does not show a city spending commitment at this step.
Vote: —
Cost: The funding package includes a $1,837,500 loan with principal forgiveness and a $1,912,500 zero-interest loan repayable over 20 years; annual budgeted debt retirement is approximately $95,625.
Vendor / responsible: Arkansas Department of Agriculture, Natural Resources Commission
Discussion level: Moderate Questions or explanation from board or staff
Resident impact: The program addresses EPA-required removal of lead and copper fittings from service lines running from the water main to homes across the city. Of approximately 43,000 total connections, about 15,000 require further research; 3,000–5,000 may require hand excavation. The city has 10 years to complete the work. Most 2025 funding would support survey and inventory; physical repairs are expected in later years.
What the Board said or did: City Engineer Gary Carnahan explained the EPA requirement, the scope of the city's water system, the funding structure, and the timeline. A statistical sampling model was described as an option to reduce the number of sites requiring physical testing. The record does not show extended Board debate.
What remains unclear: Whether the Board voted to approve filing for the funding; the exact schedule for when excavation and replacement work will begin in specific parts of the city; which neighborhoods have the highest concentration of lines requiring evaluation; and whether any local matching funds are required by the grant terms.
Source: item:2

Locations affected

Hot Springs water system (citywide)

Lead and copper service line inventory and potential replacement affecting approximately 43,000 connections system-wide, with roughly 15,000 requiring further research and 3,000–5,000 potentially requiring hand excavation.

Status: Planned

Watch list

Open follow-up issues we'll check on in future briefings.

Final vote on funding authorization

Open

Whether the Board formally voted on Resolution R24135 (the funding authorization) at a subsequent regular meeting — the available record does not confirm a final action.

Why it matters: Confirmation of Board approval is required before the city can proceed with grant and loan application.
Next check: Review minutes from subsequent regular board meetings for voting record on R24135.

Lead and copper line inventory prioritization

Open

Which geographic areas or neighborhoods will be prioritized for the initial lead and copper line inventory and any required excavation work.

Why it matters: Residents in early-priority areas should expect survey activity and potential service disruptions; transparency about phasing helps residents plan.
Next check: Monitor city communications and subsequent board meetings for project phasing announcements.

Local match requirement

Open

Whether the Arkansas Department of Agriculture grant terms include a local match requirement — this was not addressed in the available record.

Why it matters: Local match obligations would affect city budget and may influence project timeline or scope.
Next check: Request grant award documents or staff summary when funding is formally approved.

Source notes

This briefing is based on the public records below. Every claim above can be traced back to one or more of these sources.

video: Meeting video transcript
agenda: Agenda item 1 - June 2024 Financial Statements
agenda: Agenda item 2 - Lead and Copper Service Line Funding

Confidence: Medium

Transcript and parsed agenda items available. Final vote outcomes are not confirmed in the available record; unclear whether actions were deferred, passed by voice, or carried to a subsequent meeting.

How we know this

We do not invent facts.
We cite source records.
We distinguish what happened from what remains unclear.
We use neutral language.
We correct errors when found. See corrections.