Money the city will raise from water and sewer rate increases, which begin Oct. 1, will likely go into a locked account to pay only for water and sewer projects, including the third intake from Lake Mead.
The City Council voted 3-2 on Aug. 26 to enact previously budgeted tiered water rate increases, as well as a $5 a month increase in sewer charges.
The council put off until next month how to reserve the funds, because staff members were unprepared to deliver enough information, City Manager Vicki Mayes said.
Councilwoman Linda Strickland and Councilman Travis Chandler voted against the measure. Chandler disagreed that all rate users should pay the additional sewer costs, and Strickland said the reserve fund should be dedicated just for the city's $26 million bill for Southern Nevada Water Authority's third intake line from Lake Mead. The deeper intake is being built to ensure the water supply as the water level at Lake Mead drops.
The city within three years faces about $5 million in water and sewage projects, including $1 million for Wastewater Treatment Plant improvements and most imminently, $1.5 million for a sewer line under Buchanan Boulevard.
During budget meetings earlier this year the council agreed upon the higher utility rates to cover the costs. The city expects to gain more than $500,000 from the extra water and sewer charges in the next fiscal year, Mayes said.
Monthly sewer rates will rise in October to $14.65 from $9.65.
The residential water rates will change from a three-tiered rate of billing to four tiers, and homes using up to 8,000 gallons of water per month won't see an increase, but will still pay $1.37 per thousand gallons. Homes using from 8,000 to 25,000 gallons will pay $1.44 per thousand gallons, about a 5 percent increase from this year. Homes using 25,000 to 60,000 gallons will pay $1.60 per thousand gallons, a 14 percent increase; and those that use more than 60,000 gallons will pay $2.15 per thousand gallons, a 36 percent increase.
The largest percentage of homes use between 10,000 and 20,000 gallons a month, Finance Director Tim Inch said.
The tiers for commercial users also changed.
Businesses using up to 60,000 gallons will now be charged $1.60 per thousand gallons, and those using from 60,000 to 250,000 will pay $1.70. Users of 250,000 to 550,000 gallons will pay $1.80 per thousand gallons, and users of more than 550,000 gallons will pay $2.20 per thousand gallons.
No one spoke during a public hearing on the rates.
Mayes said in restructuring water rates, the city tried to protect the smallest water users and noted that a 4,000-gallon consumer would only see the added sewer charges — $60 a year.
When Chandler objected to the $5 per month added for those users, Mayor Roger Tobler suggested doing away with the sewer surcharge after the sewer projects are paid for.
Strickland said she was worried the city won't be able to pay for the third intake and thought the water and sewer increases should be saved strictly for that cost.
"I'm so concerned that when the time comes to pay, we won't have the money, and as taxpayers we'll have to sell property because we didn't properly budget," Strickland said. "My interest is to assure we get the third straw paid for, and set aside funds so they can't be raided by somebody or some future council some other date."
Councilwoman Andrea Anderson noted capital projects are pressing, and said earmarking the money only for the intake "might cause problems."
All five council members expressed a desire to create a reserved account, but Strickland said she couldn't vote for the increases without discussing the reserve funds.
"I'm not necessarily confidant that what we talk about now will actually transpire," she said.
Cassie Tomlin can be reached at 948-2073 or [email protected].
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