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Blue Diamond Business Impact Statement

The Las Vegas Valley Water District (District) has owned and operated the Blue Diamond Water System (BDWS) since 1992. Since that time, customer water rates were sufficient to pay for routine system maintenance and upgrades. As such, BDWS customer water rates have remained unchanged since 1992.

Over the next five years, the District plans to complete approximately $10 million in capital improvements to the BDWS that will increase system efficiency and reliability, and increase storage and fire protection capacity. While federal and state grant funding will be sufficient to cover the construction costs of these projects, a rate increase is necessary to fund the long-term maintenance of new water system components, continue funding day-to-day system operations, and fund water conservation programs for Blue Diamond residents and businesses.

In April 2021, District staff conducted three informational public workshops to present new water rate structures and solicit feedback from the Blue Diamond community. At its May 26, 2021 regular meeting, the Red Rock Citizens Advisory Committee (CAC) considered the rate scenarios and made a recommendation on its preferred rate scenario whose components include a 5-tier rate structure, phasing in the rate increase from years 2022-2025, and then indexing the rates in each year thereafter by an amount determined by the Consumer Price Index (CPI).

Before any water rates can be approved and implemented, a Business Impact Statement (BIS) must be prepared to evaluate the effect of the increased rates and charges on businesses. The Las Vegas Valley Water District's Board of Directors will consider the BIS at its regular meeting scheduled for July 6, 2021, and increases to water rates at a public hearing on August 3, 2021. Rate changes, if approved, will be effective January 1, 2022. The proposed water rates, as well as the impacts they would have on sample water users are below:

Proposed Water Rates
  Current Rate 2022 2023 2024 2025 2026*
(CPI)
Svc Charge $12.87 $14.67 $16.73 $19.07 $21.74 $22.28
Tier 1 (0-5,000 gal) $1.55 $1.55 $1.55 $1.55 $1.55 $1.59
Tier 2 (5,001-10,000 gal) $1.55 $1.60 $1.65 $1.75 $1.85 $1.90
Tier 3 (10,001-20,000 gal) $1.55 $1.80 $2.05 $2.35 $2.75 $2.82
Tier 4 (20,001-35,000 gal) $1.55 $1.95 $2.36 $2.83 $3.35 $3.43
Tier 5 (35,001+ gal) $1.55 $3.45 $3.80 $4.11 $4.30 $4.41

Sample Monthly Water Bill Impact
  Current Bill 2022 2023 2024 2025 2026*
(CPI)
Low User (8K gal) $25.27 $27.22 $29.43 $32.07 $35.04 $35.92
Average (18k gal) $40.77 $44.82 $49.13 $54.37 $60.74 $62.26
High User (30k gal) $59.37 $67.93 $76.83 $87.37 $99.74 $102.24
High User (60k gal) $105.87 $163.92 $183.63 $204.27 $223.99 $229.63

*Estimated impact based on a 2.5% CPI increase. Actual CPI will dictate annual increases.

Tentative schedule

  • July 6, 2021 - Water District Board Considers Business Impact Statement
  • Aug. 3, 2021 - Water District Board holds a Public Hearing on Rates

Purpose

This Notice is to publicly notify potentially affected businesses in order to conform to the requirements of NRS 237.030–237.110, "Adoption of Rules Affecting Businesses". With this in mind, there are two questions for potentially affected businesses to consider:

  1. Do the proposed charges impose a direct and significant economic burden upon your business? If you believe these changes do, please be specific as to why a particular charge imposes such a burden.
  2. Do the proposed charges restrict the formation, operation or expansion of your business? If you believe these changes do, please be specific as to how and why a particular charge imposes such a burden.

Please review and evaluate how these changes will affect your business in light of the two questions listed. If you believe your business is affected by the proposed options, you must provide a response to the Las Vegas Valley Water District no later than 6:00 p.m., June 24, 2021. See contact information below.

Mail:

Las Vegas Valley Water District
1001 S. Valley View Boulevard, M/S #760
Las Vegas, NV 89153
Attention: Jordan Bunker

Phone: 702-258-7296

E-mail: Jordan Bunker