DECEMBER 15, 2009
6:00 PM
L. To fix and from time to time to increase or
decrease water and sewer rates, tolls or charges for
services or facilities furnished or made available by
the district, including, without limiting the
generality of the foregoing, standby charges for
both water and sewers, and to pledge that revenue
for the payment of any indebtedness of the district.
New Mexico Statute 73-21-55 establishes a
three step procedure for allowing a Water
and Sanitation District that has not elected
to become subject to the Public Regulation
Commission to adjust its rates, tolls, fees
and charges.
Note: This statute was changed by House Bill 337 which became
law in 2009. The TWSD board has not elected to become subject to
the Public Regulation Commission.

(1)At least 30 days after publication of a
notice of the board’s intention to adjust
rates, tolls, fees or charges, the board shall
conduct a public hearing on the proposed
resolution, at which time , after hearing
proponents and opponents, the board may
reject, amend or adopt the resolution
adjusting the rates, tolls, fees or charges;

(2) within thirty days after publication of
the resolution adjusting rates, tolls, fees or
charges, the new rates, tolls, fees or
charges may be appealed by a taxpaying
elector to the district court of the county in
which the district is located; and

(3) the district court shall consider the
petition to overturn the adjustments,
based on the record of the board hearing in
which the resolution was adopted, under
the court’s rules governing review by a
district court of administrative decisions or
orders.
On October 22, 2009 The Timberon Water and
Sanitation District board of directors adopted
resolution 09/10-005 adjusting water rates.
The resolution lists the following changes.



1. The base water rate will be $27.40 per month,
which includes the first 1000 gallons of water with a
progressive rate curve for water usage after the
first 1000 gallons.
2. Rates for non-potable water, hooking up meters,
extending water lines, turning meters off and on,
connecting and disconnecting meters will remain
unchanged.
3. The water standby charge will be $56.70 per year,
except that if an Infrastructure Maintenance Charge
is adopted, the rate shall remain $36.00 per year.

4. After two (2) months, there will be a 6% interest
charge on unpaid metered water and standby
charges.

5. There will be a $10.00 late fee charged on all
metered water bills after a two (2) week grace
period. The grace period starts the day after the
due date listed on the metered water bill.

6. To help the financially disadvantaged, there will
be a voluntary donation program established.
Proceeds from these donations would be
distributed evenly amongst those who provide
documentation that they are on the State “LiHeap”
(subsidized utility bill) program.
TWSD needs system wide upgrades and replacement of
lines, tanks, collection systems, and treatment facilities.
The district has experienced water system maintenance
and repair costs, coupled with legal expenses, that exceed
its revenues.
The district, in the past, has used reserve funds to meet
operating costs rather than raise rates making the the cost
of water artificially low.
There are no funds available to be set aside for water
system infrastructure improvements and capital asset
replacement.
The district seeks to balance operation and maintenance
expenses with recurring revenues, build an operational
reserve to ensure financial solvency, and dedicate funds
to capital improvement of the water system.
Grants and other revenue sources previously available for
capital improvement projects have disappeared due to the
economy. The district was recently informed that funding
in the amount of $1,049,000 for urgently needed repairs to
tank two, our primary water reservoir, and other critical
water system projects was no longer available.
Timberon Water System
(Asset Management)
In 2008-2009 the cost of operating the
water enterprise was $338,490. An
additional $47,600 per year for the next
three years is needed to rebuild the
reserve accounts as required by the
DFA.
Department of Finance and Administration calls
for an additional 3 months of operations and
maintenance reserves and 1 month of
emergency reserves for a total of $112,830.
Capital reserves add another $30,000. The whole
$142,830 in reserves can be built up over a
period of 3 years or about $47,600 per year.
Based on the 2008-2009 actual expenditures of
$338,490 and adding the reserve requirements
means that the annual water enterprise budged
should be approximately $386,090.
WATER ENTERPRISE
Totals Expenditures
Usable Revenue
Excess Revenue vs Expenses
2008-2009 Budget Committee Working Document
COMBINED
338,490
342,545
4,055
REVENUE GOAL TO BALANCE BUDGET
(2008-2009 +1/3 OF RESERVE REQUIREMENTS)
FIXED INCOME FROM 620 METERS
$386,090
205,900
VARIABLE INCOME WATER USAGE (EST.)
1/3 OF STANDBY CHARGES
85,236
83,160
COLLECTIONS PAST DUE STANDBY CHARGES (EST.)
TOTAL
$394,296
20,000
CURRENT RATES
Base Rate
17.40 per mo.
PROPOSED NEW RATES
Base Rate
27.40 per mo.
Metered Water
2.69 1st 1000 gal.
Metered water
0.00 1st. 1000 gal.
2nd 1000 gal.
2.69 per 1000 gal.
2nd 1000 gal.
2.00 per 1000 gal.
Third 1000 gal. 2.69 per 1000 gal.
Third 1000 gal. 4.00 per 1000 gal.
Water use is at a Fixed Rate
Water use is a Progressive Rate
Standby Chg.
Standby Chg.
36.00 per year
56.70 per year
The overall increase in the base rate and the
standby charges is 57.5%.
Note: A progressive water rate is now required by the NM Drinking
Water Bureau
All non-water revenues and expenditures
were removed from the 2008-2009 budget
then funds sufficient to meet DFA
budgetary requirements over a period of
three years were added in. The results
were divided by the 2008-2009 numbers.
The increase of 57.5% should balance the
budget and rebuild the reserve accounts in
three years.
Increasing the $17.40 base rate and standby
charge by three percent annually since it was
established would have resulted in a 2010 base
rate of $28.76 per month and an annual standby
charge of $59.50.
The proposed rate adjustment is for a base
rate of $27.40 and a standby charge of
$56.70.
Note: standby charges were calculated from the $36.00 annual rate not the original
$42.00 rate.
The maximum percentage of increase in
water bills for 88.5% of the water users in
Timberon (those using 5,000 gallons a
month or less) will be less than 44%
CURRENT CHARGES
NEW CHARGES
Base Rate
Base Rate
17.40
1000 Gallons
Total Bill
2.69
20.09
27.40
1000 Gallons
Total Bill
0.00
27.40
Effective rate of increase for 1000 gallon user
is 36.4%
Base Rate
17.40
2000 Gallons
Total Bill
5.38
22.78
Base Rate
27.40
2000 Gallons
Total Bill
2.00
29.40
Effective rate of increase for 2000 gallon user
is 29.1%
CURRENT CHARGES
NEW CHARGES
Base Rate
Base Rate
17.40
3000 Gallons
Total Bill
8.07
25.47
27.40
3000 Gallons
Total Bill
6.00
33.40
Effective rate of increase for 3000 gallon user
is 31.1%
Base Rate
17.40
5,000 Gallons
Total Bill
13.45
30.85
Base Rate
27.40
5,000 Gallons
Total Bill
17.00
44.40
Effective rate of increase for 5,000 gallon user
is 43.9%
Questions for the board regarding
the rate adjustments
Please remember to step up to the
microphone and state your name.
2008-2009 Budget
Chart #6
(Current rates)
Chart #6
(New rates)
4&5.xls - Sheet1!A1
(Fixed and Variable Water)
Timberon Water System
(Asset Management)