Carson City plans to raise water rates

Carson City residents and business owners may soon be tapped to fund $35 million in improvements to the city's water system.

Half of a 14 percent increase in water rates could go into effect April 1, said City Manager Linda Ritter on Tuesday. The second 7 percent would take effect Oct. 1, if the Carson City Board of Supervisors approves the rate hike.

Ritter cited higher per capita water consumption, an ongoing drought and the cost of digging new wells as reasons for the price rise.

Under the planned increase, a household which consumes on average 14,000 gallons per month would see its monthly water bill rise by $2.30 in October.

A business using 48,000 gallons each month would pay an additional $9.

In the past decade, Carson City residents used on average 9 more gallons per month per person. Meanwhile, the city has collected fewer new water connection fees, as the construction of new homes has slowed from its peak in 1997.

Carson City's population, which has been growing at an annual rate of 2.6 percent since 1996, also puts a strain on resources.

In addition, the cost of digging new wells has more than doubled in the past decade. A new well carried a price tag of $900,000 in 2005, compared with $400,000 in 1994.

The city is digging five new wells this year. The third well is under construction on West College Parkway, across from the community college. It should be finished by mid-year.

Some residents were not pleased with the prospect of a rate increase.

"Any time the price of basic necessities goes up, I think it's wrong," said Janice Grear, 69, who lives on fixed income.

Marie Bresch, a master gardener, specializes in landscaping. "My summer water bills are pretty high. I guess now they'll be even higher," she said. "Water is a precious commodity, and we need to take care of it. When I garden, I'm very conservative with the amount of water I use."

Local businesses will also be affected. "Obviously, lodging and the gaming industry are heavy users of water," said Larry Osborne, executive vice president of the Carson City Area Chamber of Commerce. "They will be the most affected."

"It's not good for business," said Ajmer Deol, owner of Carson City Inn. "The price of water, gas and electricity have all gone up" in recent months, he said.

The city will hold a public hearing on the proposed price hike at the Board of Supervisors meeting March 3.

In 2004, supervisors delayed increasing water prices until it had at least a year's worth of financial data.

The proposed rate hike would help fund a $35 million capital improvement project over the next five years. Of that budget, $10 million would go to the construction of new wells, and $1 million to updating transmission lines.

The city estimates it will collect an additional $797,229 in annual revenue from the proposed hike.

n Contact reporter Dan Moreau at dmoreau@nevadaappeal.com or 881-1217.