Washoe water authority might raise rates soon, citing customer drop

By Jeff DeLong • jdelong@rgj.com • January 22, 2009

Reacting to the slumping economy and the prospect of a continuing drought, directors of the Truckee Meadows Water Authority might decide to increase water rates for the first time in four years. The board voted Wednesday to initiate discussions that could have a rate increase in place by June.

No numbers have been prepared, but officials said the increase likely would be a low single-digit percentage, possibly increasing monthly water bills by $1 to $2. The board of elected officials and appointed members can raise rates on its own authority.

Officials said the money is needed because of increased operating and maintenance costs of $5.7 million during the past four years.

Another major factor is the sick economy. The water authority has experienced "significant reductions" in investment income because of economic and market conditions and decreasing water sales as the number of vacant homes and businesses expands across the region, chief financial officer Jeff Tissier said.

With growth stagnant in the Truckee Meadows, the utility has no increase in new water connections and resulting revenue.

"The last two years, we haven't seen any," he said. "There pretty much haven't been any connections. We have no idea what customer growth is going to be like, if (any) at all." With a possible third straight dry year looming, Truckee River flow is expected to drop and further diminish income from the utility's hydroelectric plants, Tissier said.