Lyon County considers terminating Silver Springs water services contract to reduce costs

In a recent Lyon County Board of Commissioners meeting held on April 17, 2025, significant discussions centered around the potential termination of a contract with the Silver Springs Municipal Water Company. The contract, which has been in place since 2007, involves billing and customer service operations as well as the marking of water and sewer lines. The water company has requested a substantial increase in payment, from $3,000 to $6,000 per month, citing a lack of rate increases over the past 17 years.

Commissioner Mercado presented a detailed analysis of the situation, indicating that the county could provide the same services for approximately $4,500 a month, significantly lower than the water company’s proposal. This difference in cost is primarily attributed to the county's lower hourly rates for labor and operations. The board discussed the implications of this potential change, emphasizing the importance of keeping costs manageable for residents in Silver Springs.

The commissioners expressed concerns about the water company’s proposed rate increase and the efficiency of their operations. Several members questioned the necessity of the time allocated for tasks such as bank deposits, suggesting that the water company could streamline its processes. The board ultimately reached a consensus that if an agreement could not be made at the proposed $4,500 rate, they would consider taking over the services themselves.

A motion was passed to direct staff to negotiate with the Silver Springs Municipal Water Company for continued service at the lower rate or to pursue the alternative of taking over the operations. This decision reflects the board's commitment to ensuring that residents are not burdened with unnecessary costs while maintaining essential services.

As the board prepares to move forward, they will need to consider the operational impacts of potentially taking over these services, including how to integrate billing operations and manage customer payments effectively. The outcome of these negotiations will play a crucial role in shaping the future of utility services in Silver Springs, with a focus on affordability and efficiency for local residents.