NID ponders rate increases |

NID ponders rate increases

Graphic courtesy of NIDIn this worst-case scenario for consumers presented to the NID board today, rates would increase more than 50 percent over the last half of the decade to bolster the operations and maintenance budget.
ALL | GrassValleyArchive

It appears Nevada Irrigation District water rates will continue to increase over the next few years, but by how much remains unknown.

This morning, NID directors were given several proposals that would raise rates and use reserve funds over five years to meet the goal of paying for operations with revenues. The formulas to meet the goal called for yearly increases ranging from 3 to 15 percent from 2005 through 2009 while drawing between $4.5 million and $9.5 million from reserves.

But directors were concerned about public outcry to rates that have increased steadily for the past 25 years and cutting into reserves that could be used to bolster a deteriorating NID water delivery system.

“Ten percent a year is not going to fly with the public,” Director John Drew said.

“I hate to think we won’t have money for emergencies,” said Director Paul Williams about the reserve funds. “There’s only $10 million we can really touch,” of the district’s $65 million in reserve.

The directors said they want to look at using even more reserves to meet the revenues for operational costs goal. They also wanted to explore new revenue streams.

The directors will revisit the proposals in a special meeting Monday, Oct. 15 at 9 a.m.

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