Salt Lake City's answer to the state utilities audit sets June, July and summer 2027 targets
In its response to the Legislature's audit, the city said it would finish rate studies and financial plans by June 2027, complete and implement a sewer rate study by July 2027, and have a new billing system in place by summer 2027. It said the billing project was 36% complete.
Continuing story: Auditing Salt Lake City
Salt Lake City's response to the Legislature's September audit of its Department of Public Utilities commits the department to a series of deadlines in 2027, according to the audit report. [1]
The response, sent with a Sept. 4, 2026 letter from Rachel Otto, chief of staff, on behalf of Mayor Erin Mendenhall, says, "Salt Lake City concurs with the recommendations in this report." [1]
Our Oct. 15 story reported the audit's debt and sewer billing findings and the June 2027 target for rate studies and financial plans. The response includes further dates and details for each recommendation. [1]
Funding and governance: June 2027
The audit recommended that the department formally ask the mayor and City Council to consider funding changes, such as a dedicated revenue tool supported by property taxes. [1]
The city responded that rate studies and long-range financial plans will go to the mayor and council before fiscal 2027-28. They will cover long-term rate scenarios, a possible capital reserve, levels of service, impact fee increases and property tax revenue for capital needs. [1]
"Rate studies and financial plans are in process and anticipated to be finalized by June 2027," the response says. It says impact fee increases were in public hearings and were to take effect in early 2027. [1]
A second recommendation asked the department, if the current structure cannot provide enough financial stability, to have the mayor and council evaluate alternatives such as an independent water and sewer district. [1]
The city said it believes the current mayor-council form of government can provide sufficient financial stability, citing past rate increases and the department's AAA bond rating. It said it would present analyses and recommendations on rates, reserves, impact fees, property tax scenarios, service levels, future debt levels and a possible multi-year rate-setting process. [1]
"Recommendations, discussions, and public engagement will occur by June 2027," the response says. Laura Briefer, the department's director, is listed as the contact for both recommendations. [1]
Sewer billing method: July 2027
Auditors recommended that the department "develop, document, and periodically evaluate the methodology" it uses to estimate sewer flow for non-residential customers. [1]
The department replaced its earlier method, based on average winter water use, with a uniform 70% return-to-sewer factor in July 2025, the audit says. [1]
The city responded that its current rate study will evaluate water and sewer rate design and revisit the return-to-sewer design and methodology. "The rate study will be completed and implemented by July 2027," it says. [1]
Billing system: summer 2027
The audit found that the department's "aging billing system limits its ability to evaluate the effects of the 70% RTS factor." It says department staff "cannot readily identify customers with one meter or separate indoor and outdoor meters." [1]
The audit says customers seeking separate metering "must identify the issue, obtain approval, purchase meters from SLCDPU, and pay installation costs." [1]
Auditors recommended that the department use its new billing system to capture "the customer data, meter information, billing adjustments, and reporting needed" to evaluate billing outcomes and identify customers affected by current rate methods. [1]
The city said it is putting in place a new billing system, customer self-service portal, meter data management system, reporting system and payment processor, and is under contract with a software provider. "The project is currently 36% complete," the response says. [1]
"The new billing system is planned to be implemented by the summer of 2027," it says. Lisa Tarufelli, the department's finance administrator, is listed as the contact for both billing recommendations. [1]
Impact fees
On Oct. 6, 2026, the City Council "accepted public comment and approved updated impact fees" for water, sewer and stormwater, according to the council's meeting recap. It says the fees had not been updated since 1999. [2]
The 2027 dates are the city's own targets in its response to the audit. They are not findings by the auditors, and none had come due as of Oct. 16, 2026. The Ledger has not sent requests or questions to the city for this story.
Sources
- Office of the Legislative Auditor General · A Performance Audit of Salt Lake City Public Utilities (Sept. 15, 2026)
- Salt Lake City Council · October 6, 2026 meeting recap
Reporting by The Utah Ledger from the public records above. AI-assisted, checked against those records.