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Provo City Council adopts option 3 for water-rate increase, directs staff to include it in fiscal 2025–26 budget
Summary
After a work-session discussion focused on how to align rates with cost-of-service guidance, the Provo City Council voted 5–2 to adopt option 3 — a 3.3 percent revenue increase with equal dollar increases between tiers — and directed staff to include the change in the tentative budget for formal adoption later this month.
Provo City Council on Tuesday adopted a water-rate structure identified in staff materials as “option 3,” a change city staff will include in the fiscal year 2025–26 budget for the formal adoption vote scheduled for June 17.
Policy analyst Malia Daley reviewed four alternatives and told the council staff preference was to reach a motion on one option so the change could be incorporated in the budget ordinance. The council’s motion adopted option 3, the proposal that raises revenue by about 3.3 percent and applies equal-dollar increases across the three tiers.
The council’s discussion centered on how closely each option aligns with an American Water Works Association (AWWA) cost-of-service approach and how the chosen increase would affect future years. Public-works staff member Keith said “from an AWWA…
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