Water Rate Increase Likely In Rio Rancho

Rio Rancho councilors on Wednesday approved first reading of an ordinance that will hike water rates to keep pace with rising costs of operations, maintenance and generate money for capital projects.

Councilors also approved adding $1 to the present water rights acquisition fee, bringing it to $6 per bill. Another change will raise the rate for reclaimed water to 50 percent of the commercial rate charged for potable water.

Public works director Scott Sensanbaugher told councilors the increases were needed because existing rates aren’t sufficient to cover the city’s needs.

A study by Red Oak Consulting showed revenue from water and wastewater rates at $38.4 million for the fiscal year that began July 1, while revenue requirements are projected to be $39 million.

A couple of major factors that contributed to the city’s predicament were the federal mandate to install equipment to reduce naturally occurring arsenic levels and providing a water tank, pumps and other infrastructure to supply the city center, Sensanbaugher said. The arsenic requirement cost the city about $25 million, city center infrastructure about $14 million, he said.

City water rates were not raised to recoup money to cover these costs, Sensanbaugher said.

If approved at a second reading scheduled in early January, the increases would mean:

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