South Salt Lake's sewer fund deficit and the September sewer fee ordinance

South Salt Lake's sewer fund ended fiscal 2025 with an unrestricted net position of negative $7,452,748, according to the city's audited annual report. The deficit grew by $6,012,585 from the year before. ^[1]

The fund's total net position, which includes capital assets, was negative $2,761,300 at June 30, 2025, after a $5,587,296 decrease during the year. Net position is an accounting measure, not cash: the fund reported $118,537 in net cash from operations and $2,072,923 in cash and cash equivalents at year-end. ^[1]

Central Valley

The report attributes the sewer deficit in part to the city's participation in sewer revenue bonds issued in 2024 by the Central Valley Water Reclamation Facility. The report says the city's sewer system is part of Central Valley and that the city is responsible for approximately 5% of the treatment facility's costs. It lists about $4.8 million in Central Valley bond participation expense for fiscal 2025 and a net change in the city's equity investment in the joint venture. ^[1]

The report says Central Valley's $330,000,000 plant expansion was essentially completed in 2025 and that South Salt Lake's share is approximately $16,500,000. It says the Utah Division of Water Quality awarded the city approximately $14,500,000 to help fund its share, in the form of a $3,760,000 grant and $10,280,000 in no-interest loans. Those two amounts add to $14,040,000. ^[1]

The report says: "It is expected that sewer rates will be required to be increased in the future to fund the debt servicing associated with the project." ^[1]

The city's total debt at June 30, 2025 included an $8,570,881 obligation under Central Valley bonds. ^[1]

The budget

Answers to council budget questions in the June 10, 2026 meeting packet say the sewer collection system budget rises from $50,000 to $350,000 in fiscal 2027 to pay for a pipe-condition assessment, and that the council will vote on each utility fund individually. ^[2]

The September ordinance

An ordinance amending Section 3.11.100(B) of the city code, to modify sewer and industrial waste utility fees, was listed as new business on the council's Sept. 9, 2026 agenda and as unfinished business on Sept. 23. ^[3][4]

Its recitals say the fee schedule should be updated to reflect the current economic status of the city's services and costs. The packets contain no staff report on the change. ^[3][4]

The ordinance's Exhibit A, a marked-up fee table, lists two figures, $10.00 and $14.00 per 1,000 gallons, in the row for the base user fee, which is charged on average winter water use or actual use, whichever is greater. The text of the packets doesn't show which figure is struck. ^[3][4]

The city's utility rates web page, last updated July 30, 2025, says the current sewer rate is $12.00 per 1,000 gallons of winter average. ^[5]

The ordinance takes effect on the mayor's signature and publication, or, if the mayor neither approves nor disapproves it, 15 days after it is sent to the mayor's office, followed by publication. ^[4]