Water Rates May Rise for 5 Years

A consultant’s study reports that Rio Rancho water rates and fees aren’t sufficient to meet operating expenses and keep pace with the growing city’s needs.

Based on the study, and comments at a public workshop in October, councilors will consider proposals to raise rates and associated fees at their meeting on Wednesday.

The study by Red Oak Consulting showed that revenue from existing rates was insufficient to meet operating expenses, cover capital expenses, sustain reserves and cover debt service.

The city’s capital improvement plan shows the number of water service leaks has increased nearly every year from 2007, when there were 652 leaks, to 950 in 2011.

The city staff has recommended raising rates charged for water service, water use and wastewater service by 8.8 percent annually for five years. The increase would yield enough to pay for replacing water service lines, which would reduce water line breaks and water loss, according to a council briefing memo.

If approved, these are some of the changes customers would see before June 30, 2013:

♦ Monthly service charge for 5/8-inch meter (the most common residential size) would increase from $7.84 to $8.53.

♦ The single-family residential charge of $3.62 per 1,000 gallons (up to 10,000 gallons of water) would increase to $3.94.

♦ Monthly wastewater service charges for all meter sizes would increase from $10.08 to $10.97.

The staff recommends changes to the water rights acquisition fee, which is now $5 per bill.

Other proposed increases would increase the charge for opening or reactivating an account from $25 to $45, and the reconnection fee from $50 to $75.

The staff has also proposed raising the rate for customers who use reclaimed nonpotable water, from the current 49 cents per 1,000 gallons by increments to reach 50 percent of the potable water rate by the end of five years.

Albuquerque Bernalillo County Water Utility Authority charges customers who use nonpotable water 80 percent of the potable water rate.

Rio Rancho’s only reclaimed water customers are the Chamisa Hills Golf Course and Vista Verde Memorial Park.