Provo secures $94.5M funding for water infrastructure and proposes reduced rate increase

During the Provo City Council meeting on May 6, 2025, a significant focus was placed on the city’s water infrastructure funding and proposed rate adjustments, which directly impact residents' utility bills. Mayor Michelle Kaufusi announced that Provo has secured an impressive $94.5 million in outside funding for water infrastructure projects. This funding is part of a broader strategy to minimize the financial burden on residents while enhancing city services.

Kaufusi emphasized that the city has committed to investing $163 million in water infrastructure over the next decade, even without raising water rates. She highlighted the importance of seeking external funding as a priority, stating, “Residents' pockets should always be our last resort.” However, she acknowledged the need for future revenue increases, urging the council to consider a compromise on proposed rate hikes.

The council had previously discussed a potential 5% increase in water revenue, which would have resulted in an average 18% increase in bills for the highest water users. In a bid for fairness and gradual adjustment, Kaufusi proposed reducing this increase to 2.5%, lowering the average hike to 9.9%. This approach aims to ease the financial impact on residents while still addressing the city's water conservation goals mandated by state law.

Kaufusi also stressed the importance of educating residents on water-saving methods, suggesting that the city’s sustainability team would provide resources to help residents adapt to new tiered water rates without compromising their landscaping.

In addition to water infrastructure discussions, the meeting included a presentation on the city’s budget for the upcoming fiscal year. City officials encouraged residents to review the tentative budget available on the city’s website and participate in public hearings scheduled for June 3 and June 17. The budget process involved extensive collaboration among city leaders, department directors, and the council, focusing on maintaining fiscal health amid economic challenges.

As Provo continues to navigate its infrastructure needs and budgetary constraints, the outcomes of these discussions will play a crucial role in shaping the community's financial landscape and service delivery in the years to come.