Thursday, May 1, 2003 | 11:10 a.m.
The Las Vegas Valley Water District would build two solar-power plants and install a leak detection system that could save 2.5 billion gallons of water in its first year under the agency's proposed 2003-2004 budget.
The proposed $368.5 million spending plan for the fiscal year beginning July 1 requires no water rate increases. However, a citizen advisory committee is recommending the district raise rates by as much as 30 percent or more in order to encourage water conservation. Because that issue has not been resolved, the district staff did not include any increase in the projected budget.
The solar-power facilities and leak detection system are among $34.2 million in construction projects proposed for next fiscal year.
If it's approved, the district would build solar-energy facilities at the Las Vegas Springs Preserve and the Ronzone Reservoir and pumping station.
The $1.5 million facility at the preserve would have solar panels covering 1.7 acres and produce 10 percent of the electricity the district's facilities there use, District Deputy General Manager Engineering/Operations Thomas Minwegen said.
At Ronzone the district would spend $3.9 million for a solar-power system that would include 4.5 acres of solar panels. That solar facility would provide 35 percent of the electricity needed at that site, Minwegen said.
The leak detection system would cost $2.5 million, but would save that same amount after two years of use, water district Deputy General Manager Richard Wimmer said.
The system would help the district eliminate the 2 percent, or 2.5 billion gallons, of water that is lost annually in the water distribution system, district spokesman Vince Alberta said.
The Clark County Commissioners, who also serve as the board of directors for the water district, are scheduled to vote on the budget on May 19 and are to consider the formal rate increase proposal on May 20.
At a Tuesday water district meeting on the tentative budget the commissioners said they wanted to see the specific recommendation from the citizens committee before deciding on rate increases.
Commissioners Myrna Williams and Mary Kincaid-Chauncey said they are inclined to support a rate increase that would prompt customers to conserve water.
The district provides water to about 1 million people in Las Vegas and unincorporated parts of the county.
The recommended rate increases would impact all customers but those using more water would see larger increases. For example, a typical family's water bill would increase by $4 or $5 a month, while a typical golf course would see its average monthly bill of $106,140 increase by $33,000.
The rate increases, if approved, would be expected to prompt conservation of water by 8 percent over today's levels and generate an additional $60 million a year in agency revenue, Wimmer said.
If the recommended rate increases are approved by the commissioners, the water district's budget would have to amended to reflect the changes in revenue as the proposed budget does not include any rate changes.
The $368.5 million tentative budget is $51.5 million higher than this year's district budget. Projected revenues for the coming fiscal year are $317.1 million, and the spending plan also calls for using $51.4 million in money left over from previous years to balance the budget.
The $51.5 million increase in spending is attributed to several increased costs. The district is expecting to spend an additional $14.9 million to purchase water from the Southern Nevada Water Authority. Another $14.5 million in additional costs is budgeted to cover increases in connection and other charges from the authority, although these costs are directly passed on to customers.
Payroll expenses are expected to increase $10.7 million in the coming fiscal year, with pension and health insurance costs making up $4.3 million of that, plus $3.4 million to cover employee raises. The proposed budget calls for adding 10 employees to the 830-staff workforce, which Wimmer said would cost about $700,000.
The budget also calls for spending about $6.2 million on security, including $3 million on security system upgrades.
Wimmer said district officials will not specify exactly what security upgrades would be made.
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