Los Lunas council approves new tiered rate system for water, wastewater

LOS LUNAS — The Los Lunas Village Council unanimously approved the village’s water and sewer ordinance update, which will usher in a new tiered system for water and sewer users in Los Lunas on Thursday, July 24.

The approval of updates to Ordinance 483 enables the Public Works Department to revise standards for water and sewer services, as well as update fees and penalties for violators. The new rates will take effect on October 1. The last rate increase came in January 2015.

“All of the customers that we have (now) have been paying the same as a residential rate, which again it should not happen,” said Michael Jaramillo, village public works director, “because you have commercial and industrial users that are using more. So the objective, as part of our water conservation plan, is to encourage water conservation.”

Jaramillo said he is “excited about having this change” because it is primarily aimed at higher water users and will hopefully help them learn how to better manage their water use.

The new tiered system establishes the base rate (use of 0 to 2,000 gallons); usage level 1 (2,001 to 10,000 gallons); usage level 2 (10,001 to 40,000 gallons); usage level 3 (40,001 to 80,000 gallons; usage level 4 (80,001 to 350,000 gallons) and usage level 5 (350,000 gallons and above.) Actual usage charges shall be prorated to the closest 100 gallons.

Water rates for all customers inside village limits start with a base rate of $24.99 and an additional charge of $4.25 at usage level 1; $4.55 at level 2; $5.23 at level 3; $6.38 at level 4, and $8.61 at level 5.

Users outside of village limits will be charged a base rate of $34.35 with an additional charge of $4.68 at level 1, $4.68 at level 2, $5.75 at level 3; $7.02 at level 4, and $9.47 at level 5.

Base rates for sewer service customers inside the village limits will start at $31.59 with an additional charge of $3.75 at level 1; $4.50 at level 2; $6.53 at level 3; $11.09 at level 4, and $21.63 at level 5.

Service for users outside the village limits will start at $40.92 with an additional charge of $4.13 on level 1; $4.95 on level 2; $7.18 at level 3; $12.20 at level 4, and $23.79 at level 5.

Jaramillo said that while there will be a small increase for all users due to the Consumer Price Index, the most significant increase will primarily affect higher water users, who account for about 30 percent of the village. He said that 30 percent includes Niagara Bottling, LLC, and Meta/Facebook. Though he did point out that Meta does have an advanced process to recycle the water it uses.

“Residential users make up 70 percent of our water and sewer service, and they’ll be affected the least by the changes,” he said.

In his presentation to the council, Jaramillo said that regular maintenance and upcoming projects are the main reasons for the rate changes at this time, as well as bringing the village up to current standards of other New Mexico municipalities.

“The council has been submitted with some of the proposed improvements, some necessary improvements that are needed within the next five to eight years,” he said. “At our current rate, we do not have enough funds to do some of the larger projects, so in all infrastructure, in all enterprise funds that are related to water and sewer, we have the ability to look at our costs of operation. There’s been an increased cost of doing business, so we have no other choice but to raise the rate.

Among the projects Jaramillo outlined as necessary in the next five years are a new well to be implemented west of Interstate 25 as well as the replacement of outdated clay and iron pipes in the entire water/sewer infrastructure of the village.