Ephraim raises its minimum water charge from $30 to $47 after rate study

Ephraim's minimum charge for city water rose by $17 a month, to $47, under an ordinance the council took up in June 2026, after a consultant's study projected that the system's rates would not cover its costs. ^[1][2][4]

The rate study

The Rural Community Assistance Corporation's "Drinking Water Rate Study 2026," dated January 2026, was included in the council's March 18, 2026, packet. It recommends that the drinking water system increase its rates. ^[1]

With no rate change, the study projects a net cash flow of -$59,374 in 2026 growing to -$205,225 in 2030, or -$653,654 over five years. It says that while reserves are currently strong, "they would be rapidly depleted" to cover operating costs. ^[1]

The study modeled three alternatives. A one-time increase raises the in-city base rate from $30 to $47, including a $10.25 reserve fee, and keeps cash flow positive in all five years, but meets the study's reserve targets only in years one through three. A gradual option raises the base 22% a year in years two through five. A third adds a smaller first increase followed by 10% a year. ^[1]

The study sets total required reserves at $1,097,352, including $240,578 a year for capital replacement. It says the city "should consider developing a comprehensive master plan or conducting an engineering study." ^[1]

The ordinance

Ordinance ECO 26-08, in the council's June 3 packet, changes the in-city minimum for the first 7,000 gallons from $30.00 to $47.00 and the outside-city minimum from $45.00 to $70.50. That matches the study's one-time increase. ^[1][2]

The ordinance's rate header says "New rates effective 7/1/26, and will increase annually based on the CPI." The staff report in the same packet gives an Oct. 1, 2026, date. The posted ordinance's signature and vote blocks are blank. ^[2]

Draft June 3 minutes, posted in the June 17 packet, record a motion that includes a "rate increase based on CPI maximum of 3% or less, and reviewed every three years." The draft describes the motion as unanimous and also records Council Member Loren Steck as opposed. ^[3]

The city's water fee schedule, reproduced in the Sept. 16 packet, shows the $47.00 in-city and $70.50 outside-city minimums. It says new rates are effective July 1, 2026, and that annual CPI increases "must be 3% or less, and reviewed every three years." ^[4]

Rates for use above 7,000 gallons in that schedule run from $1.87 to $2.67 per 1,000 gallons inside the city and $2.82 to $4.01 outside it, the same tiers the study lists. ^[1][4]

Drought pricing

A draft drought pricing resolution, ECR 26-15, would have set in-city usage rates of $2.34 to $3.33 per 1,000 gallons from June 20 to Oct. 1, 2026. Draft June 3 minutes say Council Member Powell requested more information and public outreach before acting, and record no vote. ^[3]

At the Sept. 16 meeting, a city staff member told the council conservation efforts were having a positive effect and that well levels had begun to stabilize, according to draft minutes. No drought pricing action is recorded there. ^[5]

Next steps

The Oct. 7 packet includes a proposed resolution, ECR 26-20, for Sunrise Engineering to update the city's impact fee facilities plans and analyses for wastewater, culinary water, roads and parks, at an estimated $129,500. It includes $38,000 for culinary water. The packet records no vote. ^[5]