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City faces backlash over shocking water rate increases

July 29, 2024 | Roswell, Chaves County, New Mexico


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City faces backlash over shocking water rate increases
During a recent government meeting, significant concerns were raised regarding the water rate increases approved for the upcoming fiscal year. A council member conducted an analysis of the water department's budget for 2025, revealing discrepancies between the anticipated revenue from the approved rate increase and the actual budget projections.

The analysis indicated that while a 41% increase in water rates was implemented, the budget only accounted for a standard 5% increase. This discrepancy raised alarms about a projected shortfall of $3.2 million for the water fund, which represents a 25% deficit relative to water fund sales. The council member argued that the rate increase should have been closer to 25% to adequately cover the anticipated infrastructure rebuild costs of $4 million.

The discussion highlighted the impact of the new tiered rate structure, which was introduced without sufficient public communication. The council member noted that the average household's water bill would rise from approximately $40.70 to $57.57, a 41% increase that was not clearly communicated to residents. In contrast, an alternative proposal suggested a more modest average increase of 28%, which the council member believed would be more manageable for consumers.

Additionally, the meeting addressed the implications of these rate changes on the city's budget and personnel costs. The finance department was not present to clarify how the new rates would affect overall revenue, but it was noted that the anticipated revenue from the rate increase had not been factored into the current budget. This raised concerns about the city's ability to provide promised salary increases for staff.

The council member emphasized the need for a thorough review of the water rate study, suggesting that the current structure may be flawed and could lead to further financial strain on residents. The meeting concluded with a call for immediate action to reassess the rate increases and ensure that the financial burden on consumers is fair and transparent.

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