Commercial Property Facts
The rate increase is effective May 1, 2008 (for April 2008 consumption).
Why is LVVWD increasing rates now?
The Las Vegas Valley Water District is implementing the increase now:
- To maintain a pricing signal to customers as a reminder that their continued support of the community’s water conservation efforts is more critical now than ever as a result of the continuing drought.
- Added revenues are needed to meet the costs associated with providing service to homes and businesses in our community.
When was the last increase?
The last increase in basic water rates for LVVWD customers occurred
Jan. 1, 2007 to meet rising costs due to inflation. The Board of Directors then directed staff to convene a Citizens Advisory Committee to address revenue stability and conservation issues.
How was the amount of this increase determined?
A Rates Citizens Advisory Committee comprised of 14 residents representing diverse stakeholder groups within the Water District’s service area was selected by the LVVWD Board of Directors. The committee met as a group every other week from late August until early November. Their purpose was to make recommendations regarding the district’s water rates in order to achieve the district’s conservation goals, meet revenue requirements and maintain the district's financial integrity.
What were the committee’s findings?
After careful evaluation of the issues, the committee reached a consensus on several recommendations:
- Take incremental steps toward increasing the monthly service charge to reflect actual service-related costs.
- Provide the additional pricing signal needed to induce further conservation by implementing increases to tier pricing.
- Take incremental steps toward charging all residential customers the same rate for the same amount of water use, regardless of meter size.
- Begin testing a summer season peak rate structure. The greatest demand on the water system occurs during the months of June, July and August. As a result of the continuing drought, continued lowering of Lake Mead and high summer water usage, Intake No. 1 at the lake may become inoperable. Water District personnel will develop a summer peak rate structure for the Board's later consideration to encourage greater conservation during the summer months.
How much will bills go up?
The impact on
commercial customers varies greatly, depending on the size of meter. On the average, rates will be rising about 23.2 percent.
Does the increase include an increase in the monthly service charge?
Yes, the committee recommended that the monthly service charge for all customers increase by 50 percent. That amount is included in the rate calculator.
Will the Water District implement a seasonal rate?
LVVWD staff is reviewing the capabilities of implementing a summer or "peak water use rate," and will recommend to the Board of Directors that this go into effect in 2009. The purpose of a summer-use rate is to encourage customers to reduce the demand for water when its use is the highest. This will be particularly important if the drought continues and the intake at Lake Mead which is closest to the surface is forced out of service because the lake level is too low.
Will this added revenue be used to underwrite the proposed pipeline project to White Pine County?
No, the In-state Water Resources Project is under the direction of the Southern Nevada Water Authority (SNWA), of which the Las Vegas Valley Water District is a customer.
Will this money be used to help pay for the Las Vegas Springs Preserve?
Yes, the Las Vegas Valley Water District is the owner and steward of the Springs
Preserve. At present, LVVWD provides financial support to meet operating expenses of the Springs Preserve which opened in 2007. Additional support comes from the Springs Preserve Foundation, ticket sales, concessions and gift shop. It is anticipated that over time, the Springs Preserve will be self sufficient, generating enough revenues to cover its costs.
How do LVVWD rates compare to other communities in the West?
The LVVWD average monthly water bills are comparable to other cities in the Western United States and will continue to be so after the proposed increases are approved.
How do LVVWD commercial rates compare to other communities in the Las Vegas Valley?
Rates will remain competitive with the other communities in the valley, but the increase will send stronger pricing signals to encourage conservation. The City of North Las Vegas has already increased its rates, and it is anticipated that the other municipalities will also be increasing their rates in the months ahead.
What are you doing to help people conserve water and waste less water?
The Southern Nevada Water Authority’s conservation program is one of the most aggressive in the nation. For commercial and multifamily property owners, the Water Authority has developed the Water Efficient Technologies (WET) program. The program offers financial incentives to property owners who install water-efficient devices. They can earn up to $150,000 for implementing new, water-saving technologies. In addition, the Water Authority constantly works with the resort industry and the golf courses identifying ways to reduce water.
There are numerous programs for residential customers and irrigators as well. Since its inception in 1999, the Water Smart Landscapes incentive program has helped pay for the removal of more than 96 million square feet of turf, saving more than 19 billion gallons. There are coupons available for pool covers and car washes too.
The Water District also has an aggressive water waste investigation program. LVVWD conducted nearly 21,700 water waste investigations in 2007 and collected more than $405,000 in water waste fees. First-time water waste fees may be waived if the customer attends a special educational program, “Curbing Water Waste,” which is held regularly at the Water District. In addition, the Springs Preserve provides conservation materials and teaches sustainable practices, including classes on living a sustainable lifestyle. Visit springspreserve.org for more information.
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