Ring in water rate hike with new year, through 2012

Water authority is set to OK increases intended to offset drop in revenue

Thursday, Sept. 17, 2009 | 2 a.m.

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Southern Nevada Water Authority

Clark County residents are about to get hit with yet another rate increase, and this one will recur each year through 2012.

The Southern Nevada Water Authority board today will increase the price of water by 10 cents for every 1,000 gallons effective Jan. 1, 2010, then again on Jan. 1, 2011, and yet again the following year.

“I’m not all for it, but it’s something I think we need to do,” said Tom Collins, one of two Clark County commissioners on the board, which is made up of elected officials from throughout the county.

The water authority acts as a wholesale water distributor to all the various municipal water “districts” in Southern Nevada. Each of those districts has given the green light to the rate increase, so today’s action is a foregone conclusion, Collins said Wednesday.

Each water district sets its own rates for water delivery, so the final amount you will pay for water in the coming year depends on where you live.

But Dick Wimmer, the water authority’s deputy general manager for administration, estimated that the wholesale water price change will translate to a 3.2 percent increase in the average residential bill.

A little more than a year ago some 1.2 million customers of the Las Vegas Valley Water District saw their rates increase 23 percent. The goal of that increase was to encourage water conservation. The thinking was that if water costs more, people will use less.

This push by the water authority isn’t driven so much by conservation, however. It’s driven by the lousy economy.

Water authority documents point to a precipitous drop in hookup fees as the reason the increases are needed. New homes and businesses are assessed that fee for tying into the public water system.

But revenue from those fees by June 2010 will have fallen to $14.7 million, about 92 percent less than in 2006, when it totaled more than $188 million.

Here’s the problem with that decline: The authority has existing debt of roughly $3.5 billion, Wimmer said. It also expects future capital projects, such as building a “third straw” deeper into Lake Mead. That straw is a hedge against the real possibility that the first, highest pipe into the lake could be sucking air, not water, if the drought doesn’t relent. The lake’s level is at about 1,095 feet above sea level; the first intake is at 1,050 feet, said Kay Brothers, deputy general manager for engineering and operations.

The authority has to make payments on that debt for many years. Raising water rates helps make those payments when hookup fees, which account for about 50 percent of the authority’s funding, are way down, Wimmer said.

Water authority critics point to its bank account — which is flush with $480 million — and say it’s ludicrous for the water authority to claim it needs more money from its customers right now.

Authority officials say they don’t want to dip into its nearly half-billion-dollar account because that money helps when the agency wants to borrow still more money for its expensive projects.

Discussion: 12 comments so far…

By sincityguy

9/17/09 at 5:55 a.m.

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Here we go again!
Another utility rate hike.
Surprise, surprise!
By vsestini

9/17/09 at 5:58 a.m.

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Folks remember to "Be Water Smart, It's a desert out there." Each year residents save more and more water in true conservation mode. What happens the water district rewards us with continuing price hikes each year. We are the gold mine for the Vegas Valley Water District. We are the suckers that allow it to happen every year.

I live in section 10 composed of custom homes on half acre lots. These homes are beginning to turn into dead, brown dying tributes to the efforts of the owners to truly conserve water. What is our reward? Our water usage goes down annually, and our water rates go up annually. There evidently is no end in sight of this cycle.

Our alleged government leaders, including the head of the Water District can only see unbridled growth as the end all to their dilemma of needing more money. They dream of continuing the building boom until this valley is filled from mountain to mountain and to leveling the the tops of every mountain and filling them with houses, shopping centers, casinos, parking lots,etc, etc. Let's fill the valley just like the L.A. area then we will all grow rich ... the drum beat goes on and on ...

This year I personally used half of the water that I used last year. I had a small fountain at the front of my property that is now permanently disabled to save water. Yet many luxury hotel resorts on the strip continue to have wasteful water shows 24/7. So what is my reward for being conservative in this effort of trying to be "water smart"? an increase in my water rate and the promise that they plan to do so again for each of the next three years.

In the meantime water district officials continue to draw ridiculously high salaries, benefits, perks and state retirements. What cuts in these financial benefits has the Water District made, and will make in an effort to share in the burden of "Be Water Smart...It's a Desert Out There"?

WE, THE PEOPLE and taxpayers in this county can stop if if we want. We must demand a strict accounting of the use of our tax dollars, especially the pay of high level water district official. NO ACCOUNTING, the we must fire the bastards with our ballots at the next election... eliminate the county commissioners who refuse to truly represent us!!!!
By Galfromvegas

9/17/09 at 6:06 a.m.

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Once again, the SNWA squandered a chance to do conservation price increases by charging everyone the same. That way, Pat Mulroy and other major water wasters can be charged nearly the same rates as those of us who live in apartments.
By dipstick

9/17/09 at 6:57 a.m.

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if its yellow let it mellow; if its brown flush it down. desert life in the 21st century; get use to it.
By fubar

9/17/09 at 6:57 a.m.

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To vsestini,

I completely agree that raising the water rates after water usage goes down is a bad thing. But you have to remember that water rates in Nevada are still among the lowest, if not the lowest among all cities in the west - water here only cost about $1.10 for 1,000 gallons - that's the same you pay for one bottle of water.

Also, one other point that I think you should be more clear about is that the Water District / SNWA (they are separate agencies, well kind of - :) are not state employees so they do not get the "state retirements" that you mention in your fifth paragraph. And I had a neighbor that worked for the water district and he definetly didn't draw a ridiculously high salary - but then again he wasn't a water district official, just a worker bee.

Any way, good comment with good points. I just wanted to clarify a few things.
By chazbean

9/17/09 at 7:34 a.m.

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Don't give me that crap about the water rates being low! The water agency says it has 480mil in the bank. How about using some and penalize the large users ( Casinos, homeowners that abuse water)
By Det__Munch

9/17/09 at 7:40 a.m.

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Keep raising the rate until the water is all gone, probably in 20 years, maybe sooner. Lake Las Vegas will go back to it true form that Mother Nature gave it - a desert.
By Det__Munch

9/17/09 at 7:43 a.m.

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vsestini
As I understand, the water in those fountains at the strip hotels is recylced. It's the same water going thru all the time. (so don't drink thewater from the tap in your hotel room either! you don't know where it's been!)
By fubar

9/17/09 at 8:04 a.m.

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Chazbean,
The water rates here are really low, just check out some of the other cities in the region: http://www.phoenix.gov/WATER/wtrswrrates... & http://www.sandiego.gov/water/rates/rate... - compare those to this: http://www.lvvwd.com/custserv/bill_pay_r...

Phoenix is more than double than Las Vegas and San Diego is more that triple. So the rates we pay here are pretty good.

And the article says that SNWA has 480 mil, not the people who bill you for your water i.e. City of Henderson, Las Vegas Valley Water District, City of North Las Vegas, City of Boulder City - you don't get your water or water bill from SNWA. They are the wholesale provider to your local water agency.

I agree with the principle that you cannot have rate increases after asking and receiving conservation from the community, but these discussions are much more helpful when we just keep to the facts.
By vc

9/17/09 at 9:41 a.m.

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I dont know about everyone else but I have not had a wage increase at my job for two years, but my utility bills are soaring. I bet everyone at the utility companies have received heafty raises at our expense. Matter of fact I know they have. In a recession everyone suffers unless they work for a monopoly such as a utility or the work for the Government. The regular jow gets the shaft!
By BobbyG

9/17/09 at 10:18 a.m.

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The next Anasazi ruin.
By texexnv

9/17/09 at 10:39 a.m.

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"Anasazi ruin" LOVE IT!

Except the Anasazi civilization lasted for millenia but Vegas won't even make it a century.

And WE thought THEY were the "ignorant savages".

As long as the gambling houses are protected against all these increases is what really matters down there, right, ex-Dem Party Chair Mr. Collins?

Has Harry Reid ever brought you people ONE SINGLE DROP OF WATER in 30 years?

YOU keep electing him though....

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