Utilities Board Approves 8 Percent Water Rate Increase Amid Capital Improvement Plans

The Boulder City Water Resources Advisory Board convened on July 21, 2025, to discuss critical financial strategies and capital project timelines that will shape the future of the city’s water resources. The meeting highlighted the importance of capital prioritization and the need for flexibility in project timing to optimize financial planning and align with operational priorities.

A significant focus was placed on the management of reserve funds, which are essential for absorbing unexpected costs and maintaining stable cash flows. Board members emphasized the importance of monitoring key financial indicators, such as days cash on hand and debt service coverage ratios, to ensure financial stability and favorable positioning in the bond market.

Looking ahead, the board outlined plans for upcoming capital projects, indicating a reliance on a mix of available cash and market conditions for financing. Notably, the board is considering bonding in 2028 or 2029 for various water and sewer projects, while also planning to farm this year to support the Boulder Creek project.

The board proposed an 8% increase in the water fund, a 6% increase in the wastewater fund, and a 5% increase in the stormwater and flood fund for the upcoming year. These adjustments are seen as necessary to address a significant capital backlog, with further increases projected for 2027 and 2028.

One of the most impactful discussions revolved around the Patasso project, which is being expedited to align with planned debt issuance. Conversely, the design and construction standard update project has been deferred, reflecting a strategic shift in resource allocation.

The board also announced plans for a comprehensive utilities cost of service and rate study, aimed at reviewing all rates charged across the board. This study will include public outreach and benchmarking against other utilities, with the goal of simplifying the rate structure and addressing feedback from commercial customers.

In addition, the board addressed the South Boulder Creek flood project, clarifying that it is a $66 million initiative currently facing litigation, which could delay bonding and project timelines. The board is actively managing the permitting and bidding processes to mitigate potential delays.

Overall, the meeting underscored the board's commitment to financial prudence and strategic planning in managing Boulder City’s water resources. As the board prepares for upcoming rate increases and capital projects, the community can expect continued engagement and transparency in the decision-making process.