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Public Utilities presents FY26 budget and new rate design after comprehensive rate study
Summary
Salt Lake City Public Utilities proposed a FY26 budget April 15 that incorporates a rate redesign crafted after a comprehensive study intended to improve revenue stability and fund major treatment and infrastructure projects.
Salt Lake City Public Utilities presented its proposed FY26 budget and an accompanying rate design April 15 that follows a comprehensive rate study intended to improve revenue stability and fund major capital work while preserving affordability standards.
Director Laura Briefer and finance lead Lisa Tarfelli told the council the department operates four enterprise utilities — water, sewer, stormwater and street lighting — and that the FY26 budget is driven by a significant capital program, including major treatment‑plant investments, while incorporating recommended rate design and rate increases for different customer classes.
The rate study (shared with council in January) analyzed cost of service, allocated costs across customer classes and recommended changes in rate design to address a revenue “tilt” that relied too heavily on high‑tier water usage. The FY26 package removes the previously enacted temporary stabilization fee (used in FY25 to address revenue shortfalls) and replaces it with a new rate design that pairs higher fixed charges with tiered usage signals to better align revenue and conservation objectives.
Public Utilities staff showed sample bill scenarios in the budget appendix and said they had conducted robust public outreach, including postcards, social media, community‑council briefings and bill inserts. Staff emphasized that typical household impacts vary by meter size, usage and customer class; the department plans to publish sample bills and a calculator so customers can estimate individual impacts before the rates take effect.
On operating and capital, the department projects total FY26 expenditures of roughly $410.5 million, with about 40% dedicated to capital improvements (primarily treatment plant work) and debt service rising as the utility invests in major projects. The department requested 15 net new FTEs, mostly in operations and maintenance, to maintain an expanded system footprint.
Ending: Staff told council members they will continue outreach and return with details; several councilors asked for more sample bill tools and suggested staff provide customer‑specific examples to help residents understand impacts.
