Water district OKs budget; no rate hike

Tuesday, May 22, 2001 | 10:22 a.m.

The Las Vegas Valley Water District's efforts to meet growing demands and supply enough water to thirsty Southern Nevadans paid off for the past six years without a rate increase, a water official said.

A $46 million shortfall in the budget for the fiscal year that begins on July 1 won't change those rates, yet.

"Our reserves are large enough to avoid a rate increase not only this year but in the near future," General Manager Pat Mulroy said.

After 2002, however, water district customers could see a jump in their monthly bills.

The Las Vegas Valley Water District Board approved the $266 million budget by a 6-0 vote on Monday with County Commissioner Mary Kincaid-Chauncey absent.

The budget shortfall comes from skyrocketing electric bills and the need to upgrade the water district's computer operations, Mulroy said Monday.

Over the past six years, growth has paid for growth, and residents cut their summer demands by 17 percent, Mulroy said.

As a result, average water rates in Las Vegas are some of the lowest in the West at $29.50 per month for 18,000 gallons of household water use, water district Financial Director Carey Casey said.

The only cities lower than Las Vegas are Salt Lake City; Phoenix; Irvine, Calif.; San Antonio; Pasadena, Calif.; Boulder City; San Bernardino, Calif.; El Paso, Texas, and Riverside, Calif.

How much the rates will need to increase in 2002 is under analysis, Casey said.

Of the $46 million deficit, $34 million will be spent on electricity to pump Lake Mead's water to the Las Vegas Valley, Casey said. Power contracts are locked in at lower rates until after Jan. 1, when the water district will be buying electricity on the spot market.

The other $14 million will be used to replace outdated computer equipment.