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Provo Council continues debate on tiered water rates and a proposed 12% increase; public comment urges slower approach
Summary
Council members heard staff and consultant presentations on proposed tiered water rates and a revenue plan to fund long‑term capital needs, then voted to continue the item to allow more public outreach and staff analysis.
Gary Calder, Provo water resources director, and consultant Keith (Bowen Collins & Associates) presented the background and rationale for proposed changes to the municipal water rate structure. Staff summarized three drivers of higher long‑term costs: rising operation and maintenance costs (including construction inflation), an $80 million list of needed capital projects in the water master plan, and a gap between current rehabilitation spending and the estimated sustainable annual replacement need.
Consultant Keith presented a cost‑of‑service analysis and a recommended rate path that begins with a proposed 12% revenue increase for 2025 and a three‑block tier structure for residential customers (tier 1 roughly 0–10,000 gallons intended to cover essential indoor use, tier 2 for typical outdoor use, and tier 3 for very high summer use). "Reactive maintenance costs on average 60% higher than proactive maintenance," Keith said, a central justification for raising a portion of revenue now to fund proactive replacement.
Council members asked about alternatives, pacing and impacts. Several councilors and many residents cautioned that the initial 12% increase — combined with tiered pricing — could be financially painful for some households. Residents described fixed incomes, the loss of irrigation shares, and large lots that historically used irrigation water; speakers urged more time for outreach, consideration of hardship or land‑use exceptions (for orchards and low‑water ecosystem plantings), and clarity on how commercial and institutional accounts would be affected.
After extended discussion the council voted unanimously to continue the water‑fees ordinance, directing staff to expand public outreach (district meetings and business engagement), provide calculators and clearer billing examples, and return with refined options and cost estimates. Staff said they would examine alternatives including alternative funding, phasing and targeted assistance, and confirm legal and regulatory constraints such as the state requirement for an increasing block rate schedule.
