Incline Village weighs 14% water and wastewater rate hike to fund accelerated capital program

Incline Village weighs 14% water and wastewater rate hike to fund accelerated capital programA newly updated rate study points to a sharp increase in capital funding needs for the Nevada district, prompting trustees to push for a faster three-year rollout of SCADA upgrades while seeking to protect reserve balances.

HDR Engineering proposed a 14% across-the-board increase for both water and sewer rates for FY 2027 to cover operating expenses and an expanded capital improvement plan.

The average monthly water bill would rise from $78.72 to $89.74, while the average sewer bill would increase from $107.15 to $122.15.

Trustees directed staff to accelerate the planned SCADA system upgrades from a five-year to a three-year timeline due to the critical nature of the investments.

Board members expressed concern over initial projections that would spend down existing reserves from $14 million to $6 million, requesting revised options that maintain a 20% to 25% cushion above the policy minimum.

A public hearing to adopt the new rates is scheduled for May 13, 2026, with implementation slated for June 18, 2026.

The Incline Village General Improvement District (IVGID) Board of Trustees is evaluating a proposed 14% increase to both water and wastewater rates for fiscal year 2027. Presented by HDR Engineering at the board's April 8 meeting, the rate hike is driven by a significant uptick in identified capital investment needs compared to the district's previous 2022 rate study. Under the preliminary Phase 1 proposal, the average monthly water bill (based on 10,000 gallons) would increase by $11, rising from $78.72 to $89.74. The average monthly sewer bill (based on 3,000 gallons) would jump from $107.15 to $122.15. The proposed FY 2027 adjustment is a flat 14% increase across all rate structure components. A Phase 2 cost-of-service study is planned for next year to evaluate the proportionality between customer classes and specific rate structures. Josiah Close of HDR noted that outdated assumptions have been replaced with a much clearer picture of aging asset replacement timelines. A key driver of the capital discussion is the district's Supervisory Control and Data Acquisition (SCADA) system. During the meeting, multiple trustees, including Dave Noble and Vice Chair Michelle Jezycki, requested that the SCADA upgrades be accelerated from a proposed five-year rollout to a three-year timeline to address critical system vulnerabilities sooner. To smooth the transition to higher capital spending, the initial HDR strategy proposed spending down available reserves from $14 million to $6 million over a five-year period. However, this steep reduction drew pushback from the board. Treasurer Mick Homan expressed unease about reducing reserves by 60%, requesting that staff and HDR return with revised options designed to maintain a 20% to 25% cushion above the district's minimum reserve policy to absorb unforeseen issues. Director of Public Works Kate Nelson confirmed that HDR and district staff will return later in April with revised rate structures incorporating the accelerated three-year SCADA timeframe and the adjusted reserve targets. The board unanimously approved setting a public hearing for the utility rate adoption on May 13, 2026, with the new rates slated to take effect on June 18, 2026. The rate discussions coincide with major capital milestones for the district. According to financial reports presented at the meeting, over $19 million of the ongoing effluent pipeline project—comprising over 10 miles of pipe—was placed into service in FY 2025, with an additional $18 million in construction-in-progress scheduled to be placed in service in FY 2026 upon the project's final completion.