To: Douglas County Commission
Douglas County Proposed Rate Increases
We the undersigned residents of Wildhorse HOA respectively ask the County Commission to delay for at least one year considering increases to our utility rates for water, sewer, and trash and the proposed tax for local roads. We have several alternatives we are considering recommending but we need time to fully consider, to meet and discuss alternatives, and to have our HOA recommend a solution with HOA support.
Why is this important?
Rates are not reasonable:
Our service has not increased, our roads have fallen further apart, and we have nitrate problems that have not been addressed. The Carson Valley Utility Fund has been depleted since we were” consolidated” with the West Valley systems. We have been asked to pay more to improve the account numbers with no assurance that future requirements will not be funded out of the reserves. Our rates in the past, are the highest in the County. Those rates built the reserves, only to have the reserves used for purposes not fully explained. Once we were consolidated we saw a further erosion of the reserves. When the systems were consolidated, rates were raised again, and in fact showed an excess over forecasted reserves. As soon as the additional revenues were realized, as study was commissioned to deplete those additional revenues—a study that is supports a small area of the West side which did not have sufficient reserves to cover the expense.
Rates are Subsidized.
Rates in other county systems are subsidized. Within the County systems are subsidized both with general fund monies as well as individual tax districts for other systems. The East Valley Utility reserves and when combined with the West Valley systems actually subsidized those systems with inferior reserves. The combined resultant system was then not subsidized from any fund within the county and yet it is held to different standard when it comes to reserves and depreciation.
Rates are Discriminatory:
Specifically as concerns water, water Customers in the East Valley system pay usage fees, while others with the system and other county systems pay no usage fees. It is discriminatory to require usage fees of some customers, and not all customers.
The East Side ratepayers rates are being increased to fund projects not involving the East side. There is no plan to solve the nitrate problem ( as detailed by the USGS nitrate study) or to provide service to the 917 homes in the Johnson lane area identified by the Master Plan who are on wells and septic, according to the Master Plan. There is no plan detailing through 2019 where the increased and what problems will be solved. All we know is the accounts our money goes into can be spent on any item (s) the Director of Public works decides on, and when more money is needed, simply raise the rates.
Moreover, the increases planned for water, sewer and roads are discriminatory. While other County systems are either stable (GID’s and Towns) with no increases we are facing increases over five years of 41.25 %, and property taxes are forecast to increase another 15% over the same period for a total increase of 56.25% in charges to Carson Valley Utility Customers.
Since the County has used our reserves to fund capital expenses and continues to use the reserves as savings account for capital expenditures for other systems, we are asking the County to provide:
a. Freeze or cap rates for at least 3 years
b. The County then has times to create a long range plan on how they intend:
1. Define what county utilities includes now and in the future
2. Create the current and future management systems for utilities.
3. That provides for physical consolidation of water and sewer systems and a county waste management system.
4. The problems the systems face and provide for solutions with a time line.
5. How they intend to build rates to solve the problems and depreciation
6. Provide for capital expenditures and when those would be needed
7. How they would build a depreciation account.
Our service has not increased, our roads have fallen further apart, and we have nitrate problems that have not been addressed. The Carson Valley Utility Fund has been depleted since we were” consolidated” with the West Valley systems. We have been asked to pay more to improve the account numbers with no assurance that future requirements will not be funded out of the reserves. Our rates in the past, are the highest in the County. Those rates built the reserves, only to have the reserves used for purposes not fully explained. Once we were consolidated we saw a further erosion of the reserves. When the systems were consolidated, rates were raised again, and in fact showed an excess over forecasted reserves. As soon as the additional revenues were realized, as study was commissioned to deplete those additional revenues—a study that is supports a small area of the West side which did not have sufficient reserves to cover the expense.
Rates are Subsidized.
Rates in other county systems are subsidized. Within the County systems are subsidized both with general fund monies as well as individual tax districts for other systems. The East Valley Utility reserves and when combined with the West Valley systems actually subsidized those systems with inferior reserves. The combined resultant system was then not subsidized from any fund within the county and yet it is held to different standard when it comes to reserves and depreciation.
Rates are Discriminatory:
Specifically as concerns water, water Customers in the East Valley system pay usage fees, while others with the system and other county systems pay no usage fees. It is discriminatory to require usage fees of some customers, and not all customers.
The East Side ratepayers rates are being increased to fund projects not involving the East side. There is no plan to solve the nitrate problem ( as detailed by the USGS nitrate study) or to provide service to the 917 homes in the Johnson lane area identified by the Master Plan who are on wells and septic, according to the Master Plan. There is no plan detailing through 2019 where the increased and what problems will be solved. All we know is the accounts our money goes into can be spent on any item (s) the Director of Public works decides on, and when more money is needed, simply raise the rates.
Moreover, the increases planned for water, sewer and roads are discriminatory. While other County systems are either stable (GID’s and Towns) with no increases we are facing increases over five years of 41.25 %, and property taxes are forecast to increase another 15% over the same period for a total increase of 56.25% in charges to Carson Valley Utility Customers.
Since the County has used our reserves to fund capital expenses and continues to use the reserves as savings account for capital expenditures for other systems, we are asking the County to provide:
a. Freeze or cap rates for at least 3 years
b. The County then has times to create a long range plan on how they intend:
1. Define what county utilities includes now and in the future
2. Create the current and future management systems for utilities.
3. That provides for physical consolidation of water and sewer systems and a county waste management system.
4. The problems the systems face and provide for solutions with a time line.
5. How they intend to build rates to solve the problems and depreciation
6. Provide for capital expenditures and when those would be needed
7. How they would build a depreciation account.