Estimated read time: 5-6 minutes
- Salt Lake City proposes new water rate changes, affecting water, wastewater and stormwater bills.
- Residents may see lower base fees but higher usage rates, impacting heavy water users.
- Public hearings are planned, with changes possibly effective by July.
SALT LAKE CITY — Utah's capital city is exploring a new fee structure for water, wastewater and stormwater bills that may lower water costs for some consumers across its service area but raise costs for other users, including those who consume water the most.
The Salt Lake City Department of Public Utilities proposed a series of changes to water, wastewater and stormwater rates following a monthslong study of ways to improve the fee structure for all three utilities that could go into effect in July.
Under the plan, revealed to members of the Salt Lake City Council on Tuesday, year-over-year monthly service water fees for residential and nonresidential units would drop across the entire service area based on the meter size:
- ¾ inch (most common for city residents): $25.65 to $22.48
- 1 inch: $60.79 to $28.57
- 1½ inch: $200.77 to $43.66
- 2 inch: $214.78 to $61.85
- 3 inch: $606.67 to $110.40
- 4 inch: $646.62 to $164.95
Water usage rates, on the other hand, would be raised. The plan calls for residential usage rates to rise from $2.24 per centum cubic feet of water for the first 10 centum cubic feet, or ccf, used, to $2.84 for the first 5 ccf. Nonresidential units — commercial, industrial and institutional customers — would be charged on new summer and winter rates over the current average winter consumption rate.
However, thanks to the base drop, the monthly rate could drop for users up until they use about 6 ccf of water or more per month. Those who use 11 ccf, which is about half of the residential consumers, will see a modest increase; it "substantially" increases for "high-volume residential water users," according to a city memo.
The department supplies services for the city, as well as portions of Cottonwood Heights, Holladay, Millcreek and other parts of the county. Customers in those areas will also see changes to wastewater and stormwater rates in the coming months.
Overall, the proposed average cost of all three combined would be lower for the average single-family household than the current rate, but the new rates may still be higher than what residents paid before a "stabilization fee" was implemented to cover "revenue reliability" amid rising costs, said Laura Briefer, director of Salt Lake City Public Utilities.
"They will also see the volumetric charge be different and because of that — if they're more efficient — they'll save money on their overall bill," she told KSL.com after a presentation to the City Council.
Creating new rates
The changes are the result of a rates study that began in the spring of 2024. The city completes a study of all three rates about every five years to make sure that rates are fair for consumers, Briefer explained.
However, so much has changed since the last study.
Salt Lake City embarked on several needed projects like a new wastewater treatment plant and a new water treatment plant in City Creek Canyon that raised revenue needs, on top of already rising operational costs for an aging infrastructure and federal requirements. That drove up monthly bills over the last few years, as fees are used to cover the cost of service and projects.
Water consumption levels have dropped as residents conserved more water after years of drought and the current rates were no longer representative of how services are consumed today. However, that also cut into public utilities revenues.
"The rate study is now correcting for the changes on the system," Briefer said.
The department reviewed these situations along with all sorts of different variables, including a balance of project wants versus needs, as well as fairness for water customers and affordability, said Jason Mumm, principal consultant for FCS Group, a Colorado-based company that helped the city complete its rate study.
Various resident and nonresident public utilities consumers were also brought in to share their experiences to help the team figure out a new rate structure. The proposed new rates essentially cover the still-rising costs by shifting around how they're paid throughout the many users.
For example, those who consume more water won't just pay more than those who use less but also more for the same amount of water as in the past. It follows past drought surcharges the department added to incentivize water conservation.
Meanwhile, residential households could see wastewater costs cut almost in half while multifamily (13%) and nonresidential properties (24%) would see varying increases. This, Mumm said, would better level an existing uneven cost burden between the different wastewater users.
Ultimately, the typical residential user consuming at normal rates will pay less per month for all three utilities than they do right now.
The study finds that costs are still higher than in other cities along the Wasatch Front like Ogden, Orem, Provo and Sandy, but are cheaper than other Western cities like Denver, Seattle and Portland, Oregon.
What happens next
Salt Lake City Public Utilities presented its study findings and proposed new rates that it plans to recommend for the 2026 fiscal year budget, which the City Council will piece together over the next few months.
More presentations and public hearings are planned over the next few months, while the information will be posted online, too.
Briefer recommends that consumers check their bills and the proposal to see how it will affect them since people will be affected differently.
"Our hope is that we are able to reach people over the next few months … so none of this is a surprise when they get their first water bill in July or August," she said.
