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Provo unveils $323.3 million tentative FY2026 budget; mayor proposes smaller water-rate increase after master-plan warning
Summary
Provo’s proposed fiscal 2026 tentative budget totals $323,326,393. City leaders presented a water master plan calling for increased infrastructure funding; the mayor proposed a compromise 2.5% water-rate revenue increase (down from a previously considered 5%) and reported $94.5 million in outside water funding secured.
Provo City officials on Monday presented a tentative FY2026 city budget totaling $323,326,393 and asked the City Council to tentatively adopt it, while proposing a smaller water-rate increase after a consultant warned that construction inflation is lifting long-term replacement costs.
The mayor and city staff told the council that a water master plan from Bowen Collins recommends higher water funding because of recent construction inflation and long-term replacement needs. The administration proposed a compromise that would increase water revenue by 2.5% this year instead of the 5% the council had been considering; the highest-consuming customer tier would see an average bill increase of about 9.9% under the new proposal versus about 18.5% under the larger increase.
Why it matters: Provo’s water system serves the whole city and staff said the master plan covers a 10-year implementation horizon and also models an 80-year…
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