Revised MVWD budget promises benefits to ratepayers
Revised budget numbers for the upcoming year show a much healthier bottom line than expected for the Moapa Valley Water District (MVWD). Thanks to district staff recently securing a 0% state loan with principal forgiveness, the new budget numbers are expected to significantly reduce the rate increase expected at the end of this year.
In a board meeting held on Thursday, February 12, MVWD General Manager Joe Davis presented a preliminary budget for the upcoming fiscal year 2027. The document bottom line showed cash available at $138,554; more than $1 million above what was expected in earlier budget projections.
Davis explained that the improvement was due mainly to a state loan package secured for the construction of a new storage tank at the MVWD Arrow Canyon site near Warm Springs. District staff had already secured a $2.2 million state grant to help pay for this $4 million project. They had then begun to apply for a state-sponsored bond that would fund the remainder of that cost. But recently, Davis said he had received some good news from the state agency.
“We received notice that the loan we were applying for is actually going to be a 0% loan with full principal forgiveness,” Davis said. “They can’t call it a grant, but they can do it as principal forgiveness, which means that the money is free. So basically, our Warm Springs tank is free.”
This positive outcome improved the district’s bottom line which could reduce the rate increase needed this year, Davis said. “We were anticipating that we would need an 8 percent rate increase at the end of this year to make up a deficit,” Davis said. “But this actually brings us into positive territory. So we would need less of an increase. We’d like to say only 6 percent now, but it could be something even less than that as we sharpen our pencils between now and December.”
MVWD is projecting to complete more than $18.6 million in capital improvement projects next year. In addition to the Warm Springs Tank project, there is also a $10 million storage tank to be built in the Muddy River Narrows north of Logandale, a new well to be drilled at Arrow Canyon for $2.5 million, an essential stretch of faulty 24-inch pipeline being replaced in Moapa for $1.2 million and a host of smaller projects.
Davis pointed out that 41 percent of this $18.6 million capital budget is covered by grants or other free money programs recently procured by district staff. In addition, the $10 million Narrows Tank is being funded by a low interest loan at a rate of only 1 percent, he said.
In the meeting, Board members were pleased with the extent of these capital projects and their advantageous funding. They praised staff for seeking out the grants and other opportunities which would so directly benefit customers.
Logandale board member Ryan Wheeler emphasized the magnitude of the accomplishment of an $18 million capital budget for the year. “When I first was elected to the board, we weren’t doing much capital improvement because we were trying to save money, which was detrimental to our system,” he said. “But now we have these awesome projects planned, and a staff that has worked hard to get money to minimize the impact to our ratepayers. It is truly an exciting time for the district!”
Board member Rob Terril agreed. “I think it is amazing what has been accomplished here,” he said. “It is going to tax us a bit to have all these projects running at the same time. But what a fantastic job has been done, and I hope that the community realizes it. I’m sure that you wouldn’t find another district that is in this position with this free money and low interest funding being put to work to do so much.”