For the purposes of this report, comparisons are only made for ¾” meter residential water rates, this covers the overriding majority of single family homes in Fernley.

Because of the cost of the Water Treatment Plant, in June of 2007 the former City Council approved four Water Rate Increases, which are occurring July 1^st each year.  July is historically the beginning of the heaviest water usage months, which makes it a very poor choice of months to raise water rates in the first place, since it creates a double shock effect to our customers.  The first increase took effect July 1^st, 2007

July 1^st, 2007

The main subject concerning this increase was to remove any water included in the basic Customer Fee, which used to include the first 10,000 Gallons.  Now it is a customer account fee, plus all water usage is added on top of the basic account fee. 

It was also the beginning of a step chart which raises the rate and charges a higher price per thousand gallons to customers that use higher amounts of water.  This is said to promote water conservation and does follow along with some other water utilities’ policies, although it can be argued that just the increase in water bills alone will promote water conversation in itself.  Many home owners have invested thousands of dollars into landscaping and trees over the years and we are now starting to see much of it die due to lack of water.  These people always planned on paying for the extra water that they use, but from their standpoint, they feel that they are now being punished by having to pay more per gallon than someone else?   

July 1^st, 2008

The water rates were raised 35% across the board.  This increase was justified since Fernley was behind the curve on water rates compared to other surrounding utilities.  It should be mentioned that all of the surrounding jurisdictions have had to deal with water treatment also.  However, Fernley has high arsenic levels to deal with and it was an unfunded mandate handed down by the federal government.  If the city failed to act, it could have been penalized a very large daily fine, plus mortgage companies would have no longer been allowed to make home loans in Fernley.

July 1^st, 2009

This was the biggest increase as it was 35% added to the previous 35%, which added up to an actual combined increase over the July 1^st, 2007 rate of 82.3%.  Adding in the factor of the Water Volume Chart charges, it more than doubled and even tripled the water bills for some customers from just 16 months prior.  This was too much of an increase too soon!

July 1^st, 2010

There is one more increase scheduled that the 2007 City Council set into place.  It is the smallest increase at only 3%, but it still adds up to a combined increase of 87.6% over the July 2007 rate. 

The following are comparisons for City of Fernley Utilities (COFU) and Truckee Meadows Water Authority (TMWA) for ¾” meters:

No Wonder Our Citizens Are Angry!

Conclusion:

I believe that the current City Council, should immediately consider amending Resolution #07-004 and suspend the water rate increase scheduled for July 1^st, 2010, and then make a pledge to the citizens that we are seeking relief on the bonds from the lenders, and from the Feds, which we have been doing behind the scenes.  We should use any asset that we have to find relief from the backs of our citizens and attempt to roll back rates, as soon as possible.  The goal should be that our rates are no higher than TMWA rates so that our water rates are competitive in this region. 

Plus, get rid of the Volume Charts or at least not make the increases so punitive to citizens with landscaped yards.  I understand that this is a desert community and water conservation is very important.  However, it is too much, too soon and too high in a bad economy, and it only serves to cause blight on our community and just adds another hardship on our citizens.

We also must always be on the hunt in finding companies that want to bring good jobs to our community.  Businesses moving to Fernley will mean connection fees, construction jobs, and long-term employment, our citizens need to pay mortgages and take care of their families.  Ultimately, jobs are the only way to secure Fernley’s future 

This is a CALL TO ACTION for this City Council and Staff to take action immediately and make these actions known to the citizens of Fernley.  The good people of Fernley need hope and trust in their government and they need it NOW!

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