Ogden's utility bills fund two separate charges to the general fund

Ogden's fiscal 2027 budget proposal called for moving up to $7,537,550 from the city's four utility funds to its general fund, according to the City Council staff report for the June 16, 2026 public hearing. ^[1]

The proposed maximums were $3,810,475 from water, $1,923,500 from sanitary sewer, $830,825 from storm sewer and $972,750 from refuse. The hearing notice says the amounts are maximums and that the amounts approved in the budget or transferred during the year may be less. ^[1]

Two charges

The staff report says the transfers equal 12% of each utility's budgeted charges for services: 6% in lieu of property tax and 6% in lieu of franchise tax, the kinds of payments the city receives from outside utilities such as Rocky Mountain Power and Enbridge Gas. The money goes to the general fund "to pay for general city operations." ^[1]

Because the 12% transfer "is not considered directly related to the operation of the enterprise funds," the report says, state law requires the city to notify utility customers and hold a separate hearing. ^[1]

The same report says "an additional 5%" is transferred from these and other enterprise funds to cover administrative services such as legal, risk management, human resources and payroll. That charge is considered directly related to utility services and does not require notice. ^[1]

At the June 16 hearing, Council Executive Director Glenn Symes described the two 6% components as totaling about $7.5 million and the separate 5% administrative charge as about $3.1 million. He said the method has been in place since at least 1994. ^[2]

Five years of transfers

The staff report lists the 12% transfers in adopted budgets as $5,456,000 in fiscal 2022, $6,022,725 in fiscal 2023, $6,360,725 in fiscal 2024, $6,688,925 in fiscal 2025 and $7,046,700 in fiscal 2026. The proposed fiscal 2027 amount equals 7.59% of proposed general fund revenue of $99,287,325. ^[1]

The report says water charges include an approved 4% rate increase for canyon waterline loans and that all utility charges include an annual inflationary increase set in 2021. ^[1]

What the 2024 study examined

LRB Public Finance Advisors' May 28, 2024 memo to the city set out two questions: whether the 5% transfer covers administrative services for the water, sewer and storm utilities, and what would happen if the 12% transfers were discontinued. ^[3]

For the first question, LRB compared the 5% amounts with two cost allocations. For water, the fiscal 2024 5% transfer was $1,256,550, compared with $2,829,181 when overhead was allocated by budget share and $1,093,362 when allocated by staffing. LRB wrote that the transfer "falls somewhere between the two calculations." ^[3]

For the second question, LRB put the fiscal 2024 12% transfers at $6,360,725 and estimated that replacing them would require a property tax rate increase equal to 33% of the general fund's 2023 certified rate. A table comparing household costs labels the 12% amount "Monthly Admin Cost," $12.89 on a $107.42 average utility bill. ^[3]

At the June 16 hearing, Symes said the study found the 5% administrative transfer appropriate and that replacing the full transfer with property tax would require about a 33% increase. ^[2]

The city's public explanation

A May 12, 2026 city news release about the notices said the utilities rely on citywide services such as legal support, financial management, human resources and recordkeeping, and that "the annual transfer reflects the cost of those shared services." ^[4]

The release said an independent study found "the amounts transferred are aligned with the actual cost of services provided to the utilities." Chief Administrative Officer Mara Brown called the transfers "about fairness and efficiency." ^[4]

Three residents spoke at the hearing. One asked how the money is tracked once it reaches the general fund; the minutes do not record an answer. The council adopted the fiscal 2027 budget later that night. ^[2]