Monday, March 3, 1997 | 11:59 a.m.
CARSON CITY -- A bill to help the Southern Nevada Water Authority finance its proposed $1.8 billion expansion project over a longer period ran into opposition today from the Nevada Taxpayers Association.
Assembly Bill 201 would permit bonds issued for water projects to be paid off over 40 years rather than the current 30-year limit.
State Treasurer Bob Seale told the Assembly Government Affairs Committee that the longer term would "ease the cash flow" of the water authority, meaning it would pay less every year but end up paying more interest in the long term.
Phyllis Lee of the Southern Nevada Water Authority said the project has a life span of 75-100 years.
But Carole Vilardo, executive secretary of the Nevada Taxpayers Association, opposed expanding the payoff period to 40 years. She noted that Seale and Lee did not talk about the "impact to the taxpayer."
"The added interest does nothing to build the project," she said. "It doesn't benefit the taxpayer."
Vilardo gained support from Assemblyman John Lee, D-Las Vegas, who said, "Debt is not a good word. It scares me a little bit to extend the debt."
He said this was affecting the financial future of children and it "relaxes our responsibility."
Vilardo also objected to language in the bill that would permit the bonds to pay for such things as stream gauges, rain gauges and valves. This equipment will not last 40 years and the bonds should not be allowed to pay for their replacements, she said.
Phyllis Lee said there was no intent to finance such things as valves and faucets.
City of Las Vegas lobbyist Marvin Leavitt did not take a position on the bill but gave an example of the impact of long-term bonds. A $100 million bond sold at 7 percent for 20 years could be paid off at $9.4 million a year for a total cost of $188.7 million. A 30-year bond has a payoff schedule of $8 million a year for a total cost of $241.7 million. A 40-year bond would end up costing the taxpayers $300 million with yearly payments of $7 million.
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