Council proposes phased water rate increase to fund utilities

During the Provo City Council Work Meeting on April 8, 2025, council members discussed proposed changes to utility rates, particularly focusing on water services. The council is considering a phased increase in water rates over three years, aimed at gradually raising funding from $2.7 million to $4 million. This approach is designed to minimize the financial impact on residents, with projected increases for single-family homes starting at 52 cents in the first year, followed by 58 cents and 65 cents in subsequent years.

The proposed rate adjustments are set to take effect on September 1, strategically timed to follow the peak summer water usage period. Councilor McKay emphasized that the current rates are still conservative compared to historical recommendations. Ten years ago, studies suggested that residential rates should be around $6 per month, while the proposed increases would keep Provo's rates below that benchmark.

Additionally, the council discussed the removal of certain exemptions, which would allow for a more equitable rate structure. By eliminating these exemptions, the council aims to lower rates for all residents rather than imposing higher costs on those who previously benefited from exemptions.

The discussions reflect ongoing efforts by the Provo City Council to address the community's utility needs while ensuring fair pricing for all residents. As the council moves forward with these proposals, the implications for residents' monthly expenses and the overall financial health of the city's utility services will be closely monitored.