Thursday, March 27, 1997 | 2:48 a.m.
While its lobbyists in Carson City try to convince the Legislature to raise taxes for more construction projects, the Southern Nevada Water Authority has almost $144 million in unused bond revenue in the bank.
That's enough money for up to a year's worth of projects, SNWA Finance Director Carey Casey said, and is all part of the regional water supplier's policy of overcommitting but under-expending resources.
But unlike the county's Public Works Department, which has $70 million in unused transportation bonds, the SNWA won't go out and issue more bonds until the existing money is spent, Casey said.
And even though there's $143.7 million in the bank, Casey said, the district is committed to spending another $205.5 million over the next couple of years. When it draws down the available funds to about $40 million, the water authority will go out and issue another $135 million in bonds, he said.
County Commissioner Mary Kincaid, who was appointed chairman of the SNWA after she was sworn into office in January, said she didn't know how much money has gone unspent.
"I wasn't aware of the amount, but knew we sold bonds and that we were going to spend those bonds before we went out for more," said Kincaid, who represents North Las Vegas and some areas of the northwest valley.
"Obviously, we don't want to sell bonds and hold them for 10 years," Kincaid said. "This is a pay-as-you-go program, and the system is being built as needed."
It's all part of a phased-in $3 billion water and sewer system expansion to 900 million gallons a day -- enough to accommodate growth for the next 30 years and support a population of 2 million.
So far, the water authority has spent $237.5 million out of the $381.3 million in bond revenue and interest collected since 1994, increasing the system's capacity from 400 million to 480 million gallons a day.
That, according to SNWA spokeswoman Stephanie Stallworth, should meet the existing peak summer demand.
The next phase is to increase capacity to 600 million gallons a day for an additional $457.5 million, facilities chief Doug Selby said. That should get the valley into the next century without faucets going dry based on current population projections, Selby said.
"Our current forecast is that will happen by the year 2025," Selby said. "Our goal between now and then is to build facilities as needed in a phased-in fashion."
Water rates and connection charges have steadily gone up to pay off the outstanding bonds, with connection charges expected to reach $3,400 per home by next spring.
Water officials have asked the Legislature for a quarter-cent sales tax increase to provide additional revenue to keep water rates and connection charges from doubling in the next 25-30 years.
"The sales tax is not a determining factor in whether we build the project or sell bonds," Kincaid said. "The sales tax is how much of those bonds are paid out of ratepayer fees and connection charges."
"The sooner we get the money the less the escalation of cost will occur," Casey said. "It's pay me now or pay me later."
But even with the sales tax, water rates and connection charges are expected to go up at least 40 percent to pay for the system expansion.
Critics such as citizen activist Ken Mahal and environmentalists have said the expansion isn't needed and would only fuel growth rather than meet existing needs.
The Legislature is likely to pass the proposal back to the County Commission, where support is iffy unless the proposal is tied to a comprehensive infrastructure package.
County Commission Chairwoman Yvonne Atkinson Gates has placed an item on Tuesday's agenda asking the commission to approve a legislative position on infrastructure.
"I might vote for it, but I would rather do it comprehensively," Gates said. "Before, I said I would vote for it, now I'm saying I might vote for it, but we need to look at everything comprehensively."
Gates, Kincaid and Commissioner Myrna Williams had Assistant County Manager Randy Walker work up a chart showing $3.8 billion in unfunded needs for the next 10 years.
If the proposals for sales tax, room tax and real estate transfer tax increases are approved, along with a plan to freeze the county's school bond debt rate, all but $300 million of those unfunded needs could be paid for, they said.
But rather than have the Legislature approve the sales tax and other proposed tax increases separately, they have recommended the revenue go into a trust fund with specific amounts allocated to water, sewer, schools and mass transit.
Commissioner Bruce Woodbury has said he supports the water, sewer and schools proposal, but wants to hold off on more buses until the county sees what federal funds will be available. Woodbury has said the county may go back to the Legislature in 1999 for an additional quarter-cent increase to help pay for a monorail along the Strip.
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