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Wednesday, Feb. 29, 2012 | 12:55 p.m.
The Southern Nevada Water Authority voted today to add a $5 charge to customers’ bills for three years to pay for infrastructure costs, meaning residential users could see higher bills within months.
Retail customers might seen a monthly increase of $36, and resorts' bills could rise $2,200.
The size of the increases aren’t certain. The authority is the wholesale water supplier to several water districts — Las Vegas Valley Water District, for example — which bill customers directly.
Clark County Commissioner Chris Giunchigliani, who sits on the board of the Las Vegas Valley Water District, said it will be up to each district — in North Las Vegas, Henderson, Mesquite and Boulder City — to decide how to divvy up the water authority’s increased charge.
That could mean a $5 hike for residential customers, or, Giunchigliani said, or it could be another amount. As the water authority board met, she sent a letter to the Clark County District Attorney’s Office calling for formation of a committee to examine other options.
“We can find a better way to do it,” Giunchigliani said, adding that she wants to bring businesses and residents together. “And for people who say we can’t come up with a quick solution, I say they’re wrong.”
The water hike had plenty of foes at Wednesday’s meeting of the water authority board. Las Vegas Chamber of Commerce representatives argued for a $9.98-per-residence flat-rate hike, saying it would lessen the burden on businesses.
Some said the water authority hadn’t done enough to rein in its expenses, and talked about the “Taj Mahal” the authority occupies downtown. Board member Steve Sisolak agreed, saying the water authority’s lease on the building is “extremely, extremely expensive.”
The water authority must raise rates because of a massive drop in connection fees — the costs for a new business or homeowner to connect to the water utility. Revenue from connection fees dropped from a high of $188 million in 2006 to about $3 million in 2010.
Without connection fees, which once paid for about 57 percent of the authority’s expenses, the utility is in danger of defaulting on massive debt payments mostly for infrastructure projects such as the third water intake pipeline into Lake Mead, which has a $3 billion price tag.
These were the three options:
• A hike that ties into usage by increasing the charge per 1,000 gallons of water by 30 cents to $1.06. A typical residential bill would increase about $10.
• A flat monthly rate increase of $5 for residential customers, $36 for retail and $2,200 for resorts. The charge would be imposed for three years.
• A combination of the first two options, which would cost $5.65 for most homes, $31 for retail stores and $3,850 for resorts.
Some argued for the first option, the pay-as-you-go option — meaning that if you use more water, you pay more.
Launce Rake, representing the Sierra Club, said that option would prompt more people to conserve, which decreases the need for more infrastructure to secure more water. He also said that under flat-rate structure, homeowners would see their water bills increase by double-digit percentages, while casinos and golf courses would see their water bills increase by 2 to 6 percent.
Virginia Valentine, president of the Nevada Resort Association, said a small increase for large businesses with water bills in the hundreds of thousands of dollars amounts to much more than increases smaller water users will see.
Ultimately, the pay-as-you-go option and the mixed option were rejected. Board member Sam Bateman of the Henderson City Council said the fixed-fee gives the water authority stability over the next few years.
Bond investors prefer a stable revenue stream.
Sisolak said that between now and 2016, he wants a committee established with “all the stakeholders” to examine the next round of rate hikes, likely in three years.
Suggestions to postpone a vote to give a committee time to examine different options were rejected. Guy Hobbs, a paid consultant who came up with the board’s options, said delaying the rate hikes would put the water authority’s bond rating at “significant risk.” When a bond rating falls, funding become more expensive to the public agency issuing bonds.
At meeting's end, Rake called it a “good day for casinos and golf courses.”
chris guinchilianni is a clown!!!
fire her sorry tail!!!
All the blather about conservation of water ends up working in favor of SNWA and not the homeowner/small business owner. Everyone's bill goes up regardless of actual usage. What a deal! Mulroy and Co. have overstayed their welcome. Clean house, put the oligarchy in cheaper digs, close Springs Preserve; the list of belt tightening measures that need to be implemented for these clowns is endless.
SNWA is getting to be like NV Energy and the Gas company.... Just keep Raising the RATES !!! Why do The Workers Keep getting Raises ??? Time to Cut the FAT !!!!
So being eco-friendly and reducing my energy and water consumption gets me nowhere. First, NV energy shoves this meter down my neck subsidized by the fed, and now my water bill is going up 40% after a previous 30% increase last year. Just to be connected to the line will cost probably about $10, $15. I can afford it but why the hell am I paying for something I'm not using?
How come no one asks how much they lost on their farming/ranching ventures over the past year. The term 'Criminal misuse of Public Funds' comes to mind, too bad they are above the law.
typical of these entrenched hypocrites---lets screw the small guys with what amounts to a 33% increase on a small conserving user, while the big users continue to waste water like its going out of style--take a drive down pecos past newtons house and the rest of the mansions--50+ acres of water eating grass and plants growing like a tropical forest in the middle of the desert---and only a $5 increase to these and many other water hogs. And springs reserve is the biggest joke in town---total waste of money--get the bulldozers and have at it please. totally user unfriendly---but plenty of close parking for the "administrators". NO THANKS
Just like taxes the "temporary" surcharge will last forever.
@ mrlucky: While I agree with your comments about the water authority, for what it's worth, I own and live in one of the properties you refer to on Pecos near Mr. Newton's Casa de Shenandoah.
The irrigation systems you see operating are fed off deep wells monitored per ground water permits we purchased when we built the properties, not from water supplied by the water authority. This is common for most of the horse properties in the area. In fact, the main house and guest house on my property are billed at the minimum tier by SNWA because of conservation efforts.
Conservation is the reason we, the ratepayers, aren't stuck with a $15 billion pipeline-to-nowhere. This was juiced from the get go - the casinos decided that residents would pay for their water. And it probably says a lot about who is going to pay for more infrastructure when Pat decides to spend another billion or two.
But the new SNWA offices are REALLY, REALLY nice! I haven't seen that much marble since visiting the Capitol.
i have been here forever too-does that mean because some peoples families are 100 years in town or had a ton of money 30 years ago they can spray water like crazy because they were "grandfathered in"----that seems to apply to many things in this valley, not just water---but whatever---i didn't buy a property and drill a well 100 years ago so now im stuck paying 30% more and these "deep" wells are spraying water like crazy all day long, every day i drive by. another friend of mine has old property with a forest on it, and giant pool and grass and shrubs that take an army of landscapers to handle, and he only gets a 5$ rate increase???? doesn't make any sense----a couple years ago the news team went to the snwa board members houses with cameras and many were huge old lots with sprinklers spraying water all over the place and running down the road wasted as they play commercials about conserving water. HYPOCRITES
This has been going on for years in the United States. Where I live you pay a $13.75 per month "fee" , "surcharge", whatever you want to call it. That is before you use ANY of the utility. It used to be 5 bucks a month, then 9 bucks, and now $13.75. As we conserve more and have more energy efficient homes and appliances we use less and less utilities. These companies make up the difference by charging higher and higher fees. It will only get worse.
When it comes to fresh, sanitary water, Las Vegas is dying a slow death I'm afraid. The numbers behind the usage/evaporation rates have been in for a long time. It's so sad to see the futile efforts of the snwa as they gouge the public in order to remain operable. It is a crisis situation that isn't going to suddenly change with a few good snowstorms. What you can count on is a steady decline in the quality and availability of water at your faucet despite the fees. I don't care how green a casino/home/office is, the sanitary water supply is simply no longer sustainable and hasn't been for many years.
Lets see, Cox cable went up, NV Energy increased rates, gas prices are up and now the SNWA wants to place a $5 surcharge monthly. I do not believe that SNWA has cut cost, cut cost means that every executive should take a pay cut. These surcharges are just taking money out of the consumers pocket which means they will cut spending elsewhere and that is not good for the local economy. SNWA needs to make big cuts even if its means their executives and managers taking pay cuts.
If they can't tighten the belts further in this economy, what are they going to do when things improve a bit and they go back to "normal?"