Water bonds, property tax hikes on Carson City's Board of Supervisor agenda

Water and sewer rate hikes may move a step closer Thursday when the Carson City Board of Supervisors will hear plans to issue up to $32 million in general obligation water bonds over 30 years.

The meeting begins at 8:30 a.m., at the Carson City Community Center, Sierra Room, 851 East William Street. Also on the agenda is a proposal to hike property taxes for some portions of Carson City because of falling assessed property values.

To read the full board agenda and supporting material click on to www.carson-city.nv.us/Index.aspx?page=2287

The proposed water bond money would be used for the purpose of acquiring, constructing improving and equipping the city's water projects. The debt on the bond would be $2,015,000 for 30 years, according to city officials.

When Carson City approved the regional water plan with Douglas County, there was a payment plan structure laid out, including the costs associated with the Carson City to Douglas County water pipeline.

For many years, west side water wells have suffered from naturally occurring contamination from uranium and arsenic. And for years, rather than expensive water treatments, utility workers have blended these waters with good water from other wells around town. However, due to the drought, those good wells can no longer keep up with their share of the blending.

So, city public works officials worked out a deal with Minden to provide some of their unused groundwater, which is very high quality water, to Carson City, via a large pipeline. The pipeline will be built from Minden to Carson City, with cross-town interties to spread it around.

Construction on the pipeline will begin this year. Cost will be high necessitating a potential 25 percent customer rate increase for water, potentially effective July 1st. City officials content the cost would have been worse if the town had to conduct very expensive filtering of the west side wells.

City officials say the pipeline will will help Douglas, Carson, and Lyon Counties better manage their water supplies in the event of future drought or large wildland fires. They say pushing water up and down the system where the need is greatest is just good water management.

Customer sewer rates may also go up between 10 to 15 percent possibly effective July 1st to pay for the sewer line component of the Roop Street rebuild project as well as for the overhaul of a sewer pump station.

The proposed $32 million in bonds would pay for the costs of construction of the water and sewer projects, while the rate hikes would go to pay back the bonds over time.

In other agenda items, the city is preparing Carson City's fiscal year 2011 budget. Staff is recommending using the "allowed" tax rate compiled by the Department of Taxation. This means that some commercial, residential and redevelopment areas may see property tax hikes.

The city reports that because of falling assessed values, by leaving the property tax rates at fiscal year 2010 level, the tax revenues received from commercial and residential parcels would not increase by the 3 to 8 percent caps Carson has set.

"By using the 'allowed' tax rate, the general fund is projected to see an increase of revenues in real property taxes and centrally assessed property. The Redevelopment Authority would receive approximately $100,000 in real and personal property taxes for FY 2011 if the 'allowed' rate was used," according to a staff report.

By adopting the allowed rate, the city would see an increase in general fund revenues, both real and personal property taxes, for 2011 by about $375,000 and would increase the Redevelopment Authority real and personal property taxes by about $100,000, according to the staff report.

The proposed hikes and areas affected properties will be discussed at the board meeting on Thursday.