Consultant: water funds run dry by 2029 without increases; 12% culinary hike and metered irrigation tiers proposed
August 5, 2025, 4:00 p.m. · City Administration Conference Room, 51 E. Main St.
Keith Larson of Bowen Collins & Associates told the council the water system's revenue falls short and the city could deplete reserves by 2029 without raising rates, proposing about $5 a month more per household in 2026 (12% for culinary water) and a five-year phase-in of tiered, metered pressurized irrigation rates required by state law by 2030. He recommended ending new irrigation shareholder credits and eventually phasing out the program; shareholder Royce Shelley said that would feel like losing property.
From the approved minutes.
In brief
1 item came up for a decision or discussion: 1 discussed.
This write-up links 2 source documents.
6 members were present.
Residents raised water rate increases and phase-out of irrigation shareholder credits.
The previous City Council work session meeting was on July 8, 2025: Council awards $415,042 Fox Hollow flood repair, OKs land use change for TSSD pump station near Boat Harbor
The next one was on August 12, 2025: Council OKs medium density for Meadow View Ranch near 800 South and 100 East, joins Lehi on Pony Express Parkway design
Decisions at a glance
| Item | Result |
|---|---|
| Culinary and pressurized irrigation rate study | Discussed |
Agenda, item by item
Item 1 · Taxes and fees
Culinary and pressurized irrigation rate study
Discussed
About 90% of homes have irrigation meters. Larson said inflation hit about 30% since the 2021 study and infrastructure costs nearly doubled; culinary revenue subsidizes irrigation bond payments; cash was just over $25 million in 2024. Proposed: $5/month combined increase in 2026 ($3 culinary, $2 irrigation); culinary rates up 12%; irrigation base rate by lot-size bins (about $17 for small lots vs. a current flat $21.68) plus four usage tiers, shifting from 73% base revenue in 2026 toward 50-60% by 2030; Tier 4 among the highest in the area. Bunker cited a new 36-inch line from 700 North to 200 South and a new south-side well, and a refinancing of the 2006-07 irrigation bonds. Shareholder credits: 324 customers with 426 shares received about $136,000 in 2024; Larson called them fair to slightly generous and proposed a flat $53.60/share credit, no new credits and a phase-out. John supported halting new credits but said the original agreement has no sunset; shares are worth $14,000-18,000.
- Consultant: Bowen Collins & Associates (Keith Larson)
- Shareholder credits 2024: about $136,000
- Proposed 2026 culinary increase: 12%
What residents said
Water rate increasesPhase-out of irrigation shareholder credits
Royce Shelley, an irrigation shareholder with inherited shares tied to his parcels, objected to phasing out shareholder credits, calling it a loss of a property right.