A special category created for those who use the most water will increase their rate, not by the standard 14 percent passed Thursday by the Carson City Board of Supervisors, but by 31 percent.
Residents and businesses consuming more than 100,000 gallons a month will see their fees rise from $1.58 per 1,000 gallons to $2.08 per 1,000 gallons, a 31 percent hike.
In the summer, high-end operators, which account for 15 percent of Carson's water consumers, use 30 percent of the water supply, according to City Public Works Operation Manager Tom Hoffert.
Carson-Tahoe Hospital, a heavy user, anticipates $20,000 to $25,000 a year in additional costs due to the hike.
"We already run an efficient operation," Chief Operating Officer Kevin Sansbury said. "Whether we increase fees or cut costs, ultimately it is the residents of Carson City who will shoulder the burden."
David Ruf, owner of Greenhouse Garden Center, said he was disappointed by the hike. Asked whether he would grin and bear the increase, he replied, "I just bear it.
Ruf added that the hike could drive away new businesses and raise consumer costs. "Businesses give back a lot more to the city than just property taxes," Ruf said. "They also employ the local community."
Ruf, who has to compete with big-box stores like Wal-Mart, said he will reduce his inventory as a way of keeping his water consumption below 100,000 gallons per month to avoid paying 31 percent higher rates.
With the exception of Ruf, the business community has quietly accepted the 31 percent rate increase for heavy users. At the sparsely attended supervisors meeting on Thursday, Hoffert said he had received "little communication" from the business community regarding the hike.
A lawyer representing the Casino Fandango attended the hearing but didn't speak. Carson City counts 520 high-end users among its water consumers.
At the meeting, Supervisor Shelly Aldean, who voted against the hike, floated the idea of eliminating one of the two scheduled rate increases for heavy users, so that their rates would jump by 16 percent, not 31 percent.
Her suggestion failed to gain support from the board, which voted for the increase 3-to-2.
Eliminating one of the two hikes for heavy users would result in a revenue loss of $115,000 for the city, according to City Manager Linda Ritter.
Faced with a dwindling balance and declining new connection fees, the city couldn't afford to let go of that added revenue, said John Bono, a consultant hired by the city.
Supervisor Peter Livermore, who opposed the fee hike, suggested raising new connections fees as an alternative to increasing water rates, a notion that Bono dismissed.
Raising connection fees "won't get you out of your [financial] hole," Bono said. "Even if you could raise them high enough to bridge the funding gap, you'd preclude growth."
n Contact reporter Dan Moreau at dmoreau@nevadaappeal.com or 881-1217.
Water Rate Hike
Heavy-user water rates will rise 31 percent
• $1.58 per 1,000 gallons (current)
• $1.94 per 1,000 gallons (April 1)
• $2.08 per 1,000 gallons (Oct. 1)
