Salt Lake City Public Utilities reveals $410M budget with new rate structure changes

The Salt Lake City Council held a work session on April 15, 2025, to discuss the proposed budget for the Public Utilities Department for fiscal year 2026. The total proposed budget amounts to $410,518,007, reflecting a significant decrease of approximately 26.71% or nearly $150 million from the amended budget for fiscal year 2025. This reduction is primarily attributed to cuts in the capital projects budget and a decrease in bond and loan proceeds compared to the previous fiscal year.

Public Utilities Director Laura Briefer presented the budget, highlighting that the department operates four separate utilities: water, sewer, stormwater, and street lighting. Each utility functions as an independent enterprise fund with distinct revenue streams, capital programs, and staffing. A comprehensive utility rate study was recently completed, leading to recommended changes aimed at accurately reflecting the cost of service delivery while maintaining affordability for customers.

The proposed budget incorporates these recommended rate changes, which will result in varied impacts on utility bills depending on customer class, usage, and meter size. Notably, the stabilization fee for water and sewer accounts, previously implemented as a temporary measure, will be eliminated. Additionally, the street lighting utility is set to increase its rates by 15% to address rising costs and support the street lighting master plan.

Briefer emphasized the importance of investing in aging infrastructure and complying with regulatory requirements to ensure the viability of the city’s water-related services. The budget allocates significant funds for capital improvements, particularly for the City Creek Water Treatment Plant, which is undergoing rehabilitation.

The council members engaged in discussions regarding the communication strategies for informing residents about the upcoming rate changes and the importance of transparency. They expressed the need for clear examples and scenarios to help residents understand how the new rates will affect their bills.

The meeting concluded with a commitment to ongoing public engagement and education efforts to ensure residents are well-informed about the changes and the rationale behind them. The council plans to continue discussions on the budget and its implications in future sessions.