MVWD Eyeing Rate Increase For Highest Volume Users

By VERNON ROBISON

The Progress

The Moapa Valley Water District board of directors is considering the impacts of adding a fourth usage tier to the water rate structure. This would increase water rates on customers using the highest volume of water.

The district sent a notice out to local business last week advising of the potential increase. The notice also seeks feedback from business owners regarding any undue impacts to their businesses that such an increase might cause.

The proposal would create a new rate tier for all customers using over 70,000 gallons of water per month. This tier would usually be limited only to the largest water users such as industrial facilities or owners of parks and large athletics fields which must be watered regularly.

Most customer classes would see no change to their rates. But for those high users, the summer average monthly rate increase would range from an additional $45 to $323 per month, dependent upon usage. Winter monthly usage increases would occur much less often, even for high usage customers. But when they did occur, the bills were estimated to increase in the $84 to $130 range per month.

The proposal would also expand the second rate tier for customers. Currently the third rate tier begins at 18,000 gallons of monthly usage. The new proposal would increase the trigger for the third rate tier to 52,000 gallons per month.

In an MVWD board meeting on July 14, General Manager Joe Davis explained that district staff had been looking for ways to increase revenues while not affecting the base rate that all customers must pay.
Davis explained that the monthly base rate has traditionally been designed to cover bond payments and other fixed costs.
The usage tiers are instituted to cover operational costs of the district, he said.

What found that we wouldn’t have to adjust the base rate that is charged to every meter that is assessed,” Davis said. “Instead we were able to achieve our needs for operating revenue through the increase in tiers cost. That is more where it belongs anyway.”

Davis said that it had become common, given current drought conditions across the west, for water purveyors to institute these increased rate tiers for the highest water users. This not only places the higher costs on the highest users but it also encourages conservation of water, he said.

“The concept behind it is that if you use more you pay more,” Davis said. “That is the mantra that we started here about 10 years ago. And moving forward I think that it is still a good program to have.”

Davis estimated that the increase would bring in about the same revenue as a 4 percent general base rate increase to all customers would yield.

Davis explained that the new tier would apply to all customers. But the district is required by state law to conduct a Business Impact Study on the effect of the increase on local businesses. That is the reason why notices of the change went out to all local business customers seeking their feedback on the proposal.

The deadline for business owners to respond to the notice is August 19. Responses will then be used to prepare the Business Impact Statement report. Then on Sept. 8 a public meeting will be held to consider that Business Impact Statement. On October 13, the board will hold a public hearing and then will meet to take action on the proposed increase.

Responses from local businesses should be mailed or delivered to the district before Aug. 19 at 4:30 pm. They may be mailed to MVWD; PO BOX 257; Logandale, NV, 89040. Or they can be hand-delivered to the district office at 601 N. Moapa Valley Blvd.; Overton, NV 89040.