Carson City could raise water, sewer, gas, electric and storm drain taxes to support its emergency fund and utility maintenance costs.
The increases would cost the average residential customer about $5 more a month, according to the city.
Supervisors will vote on the taxes Thursday at budget hearings for the next fiscal year, which begins July 1.
Taxes would be increased by the following under a proposal by City Manager Larry Werner and Finance Director Nick Providenti:
- Gas, 0.5 percent
- Electric, 1 percent
- Water, 5 percent
- Sewer, 5 percent
- Storm drain, 10 percent.
Werner said the city needs to increase the fees to maintain services and a balanced budget during the next five years.
The city's biggest source of income, sales taxes, was 12 percent less than expected and $2.8 million less than last year. The city did not have a budget shortfall this fiscal year like it did last year, however.
The city's general fund is about $55 million.
"We're looking not too bad," Werner said. "We got a pretty decent budget. It's tight, but it's not a catastrophe."
The gas and electric taxes will bring the city's emergency fund back up to between $3 million and $5 million over the next five years, he said. The fund will be reduced initially because the city will need the money to balance the general fund over the next few years.
The city has to raise water, sewer and storm drain taxes to keep up with maintenance, Werner said.
Providenti said in a report that from last year to this year, the water fund dropped from about $11.7 million to $6.9 million, the sewer fund dropped from $3.4 million to $2.9 million and the storm water drain fund dropped from $1 million to $235,000.
Major costs for these funds include work on the Curry Street extension, the city bypass and water tanks, he said.
"Staff has prepared a balanced budget in light of the severe financial hardships that are facing the city," he said.
The city increased water, sewer and storm drain taxes last year. Water went up 6 percent, sewer went up 24 percent and storm drain went up 5 percent.
Next year's increases will cause city customers to pay overall about 7 percent more, said Ken Arnold, public works operations director.
An average customer who now pays about $30 a month will see an increase of around $2.25 a month, he said. A large user like a restaurant that pays $580 a month would see about a $40 increase a month, he said.
"If dollar-and-cents-wise you boil it down, it's not as scary as it looks," he said.
The city had a $3 million shortfall last year. It suspended job positions, cut services and delayed construction projects to close the gap.
It will keep many of the same cuts for the next fiscal year. The city has budgeted 585 full-time employees next year. This is nine fewer than this year, 43 positions fewer than last year and 58 than 2007.
The city will also save money next year by keeping the landfill closed on Sundays and again delaying most construction projects.