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Metropolitan Water District proposes 5% water rate increase, $37M bonding for Cottonwoods projects; no property‑tax increase proposed this year
Summary
Metro Water presented a tentative FY2025‑26 budget of about $111 million, driven by higher agency costs and infrastructure projects. The district proposed a 5% increase to member city water rates, no property tax increase this year and bonding of about $37 million for Cottonwoods and treatment plant work.
The Metropolitan Water District of Salt Lake and Sandy presented its tentative fiscal year 2025‑26 budget to the council, forecasting a total budget of roughly $111 million driven by rising costs from partner agencies, utility price increases and major projects including the Cottonwoods Connection and preliminary work to rebuild the Little Cottonwood Water Treatment Plant.
Austin Kimmel of council policy staff described the council's role in reviewing Metro's budget and setting the tax rate in conjunction with Sandy. Metro Water general manager Annalee Munsey said the district proposes a 5% increase to the water rate charged to member cities and a 5% increase for non‑member sales. "Metro Water proposes a 5 per 5% increase to the rate charged to member cities for water sales and a 5% increase to water rates for non member entities," Kimmel summarized.
Why it matters: Metro supplies drinking water to Salt Lake City and Sandy and is a taxing entity on property‑tax bills. Munsey said the proposed budget includes funding for operations and major capital projects; Metro does not propose a certified property‑tax rate increase this year (projected certified tax rate proposed at 0.00035) but anticipates future funding needs for the Little Cottonwood treatment plant rebuild and other work.
Key budget details presented by Metro Water: - Total tentative budget: just over $111,000,000 (about $9.9M increase from prior year). - Proposed 5% increase to member city water rates; no property‑tax increase proposed for FY26 (certified rate projected at 0.00035). - Bonding anticipated in FY26: approximately $37,000,000 to pay for projects including Salt Lake Aqueduct replacement (Cottonwoods Connection reaches), design for Little Cottonwood WTP rebuild and related conveyance work. - Operating (O&M) and other costs elevated by utility price increases, personnel costs and pass‑through costs from partner entities such as Central Utah Water Conservancy District, Jordan Valley Water Conservancy District and the Provo River Water Users Association.
Munsey said Metro anticipates additional staff (increase of four FTEs) and a proposed 4% employee merit increase; Metro will continue to coordinate cost exposures with Salt Lake City utilities staff. Metro's board chair Tom Godfrey and trustees present described the scale of regional projects such as the Deer Creek intake project at the Provo River Water Users Association and the effects of partner agencies' O&M and capital charges on Metro's budget.
What the council did: the presentation was for review; council members asked clarifying questions about future bond timing and potential property‑tax impacts. No council vote was taken; Metro will continue to coordinate with member cities as it refines the budget and moves toward bonding and project design phases.
Ending: Metro Water's proposed rate increases and planned bonding are intended to fund resilience and replacement of aging treatment and conveyance infrastructure; the district and council will continue to review details and timing ahead of formal tax‑rate and bonding steps.
