A change in the Vegas business model

Another example that the old New West development model isn’t working:

Next spring, water bills will rise to help pay the Southern Nevada Water Authority’s mounting debt used to fund some $3.3 billion in pumps, pipes and intakes installed over the past several years.

The fee, which comes on top of other recent increases, is needed because the old way of paying off water utility debt — connection fees paid by developers — has dried up in the recession. Consider that in fiscal year 2005-06, the Water Authority collected about $188 million in connection fees. This year, connection fees will total $11 million.

A graphical representation of what’s going on:

New home starts, monthly, Las Vegas MSA

New home starts, monthly, Las Vegas MSA


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