Bountiful raised power rates 4% for fiscal 2027; its utility sends about $3.2 million a year to the General Fund
The council adopted a 4% increase in metered power rates and customer charges in June. Staff said the power utility keeps 3.6 percentage points of it and 0.4 points go to the General Fund through a transfer the city sets at 10% of electric metered sales.
Continuing story: Auditing Bountiful
Bountiful's fiscal 2027 budget raises metered power rates and customer charges 4%, and part of that increase flows to the city's General Fund through an annual transfer from the power utility, according to minutes of the council's June 9, 2026 budget hearing. [1]
At the hearing, a resident said he understood the power department would keep 3.6 percentage points of the increase and 0.4 points would go to the General Fund. Assistant City Manager Tyson Beck confirmed the 4% applies to metered sales and customer charges, and City Manager Gary Hill confirmed the split. [1]
The council then adopted the budget, fee schedule and related items 5-0 as Ordinance 2026-06. [1]
How the transfer works
The city's audited fiscal 2025 report says the transfer is "calculated as 10% of electric metered sales." It says the General Fund's transfer from the power fund rose $242,922 that year. [4]
On June 9, Beck said a $100,000 increase in the fiscal 2026 transfer reflected higher-than-anticipated sales and helps fund operations and keep property taxes lower. No one commented at the hearing. [1]
The adopted budget's General Fund revenue schedule shows transfers from Light & Power of $2,724,379 in fiscal 2023, $2,979,729 in fiscal 2024 and $3,222,651 in fiscal 2025. Its table of transfers between city funds lists $3,230,000 for fiscal 2027. [3]
Minutes of the April 28, 2026 joint power committee and Power Commission meeting list a $3,291,424 transfer to the General Fund in the proposed power budget. The records reviewed do not explain the difference from the $3,230,000 in the adopted budget. [2][3]
Why rates rose
The April 28 minutes put the proposed power budget at $43,080,097, with $38,342,032 in operating revenue. [2]
Staff said new market rules starting May 1, 2026 that require holding 109% of anticipated demand are the largest contributor to an almost $3 million increase in power costs, and also cited low water at Lake Powell. [2]
Even with the 4% increase, about $1.5 million is projected to come from reserves, the minutes say. [2]
A Power Commission member moved to approve a 5% increase, and the commission's chair voted no; the minutes do not record the rest of that vote or its outcome. The commission then voted unanimously for 4%, and the council's power committee voted 3-0 to accept that recommendation. [2]
Fiscal 2027 figures are budgeted amounts, not actual results. The transfer to the General Fund is separate from charges the city allocates to its utilities for central administrative services, which this story does not cover. The minutes reviewed have blank signature lines.
Sources
- Bountiful City Council · June 9, 2026 minutes
- Bountiful City · FY2027 budget committee minutes, including April 28, 2026 power committee
- Bountiful City · FY2027 final adopted budget
- Bountiful City · FY2025 annual comprehensive financial report
Reporting by The Utah Ledger from the public records above. AI-assisted, checked against those records.