Davis‑Weber Canal Company defends tiered secondary‑water rate changes; council members challenge distribution across lot sizes

Representatives of the Davis‑Weber County Canal Company briefed the Clinton City Council on Aug. 26 about a proposed update to secondary‑water rates that would target some larger lot categories while holding smaller lot tiers at lower or no increases in the near term.

Rick Smith, general manager of the Davis‑Weber County Canal Company, and consultant Fred Philpotts explained the company’s updated rate model, saying metering projects and new capital needs — partly driven by regional road projects — have changed the cost picture since the company’s last rate update. Philpotts said the company aims to meet a 2029 state requirement to meter secondary water and to comply with a 2025 legislative requirement (referred to in the presentation as “74 passed in 2025”) that encourages tiered billing based on measured usage.

Philpotts told the council the company had previously capped increases at 25% and wanted to revisit some categories with a more granular analysis. “The objective here is to propose the ... rate schedule and have those effective for the next company fiscal year,” Philpotts said, explaining the company’s schedule for implementing the rates.

Council members pressed the company about fairness and distribution of the proposed increases. One council member said the current proposal leaves the smallest tier (0–0.33 acre lots) with no increase while applying larger changes to 1.25‑acre lots and some intermediate brackets; the council member said that structure effectively subsidizes larger connections and urged a more equal spread across users. Philpotts and Smith said the company’s detailed cost model allocates demand and fixed costs by lot size and usage and that the prior 25% cap had deferred some adjustments to larger‑lot categories.

Philpotts and Smith also highlighted grant money the company received to accelerate the metering program, noting the state initially offered a $10 million grant but the company secured larger funding and has already invested about $20 million in meter work over three years. The presenters said capital projects tied to UDOT road work and other system needs continue to raise costs. Smith described the company’s intent to return to tiered billing by or before 2029 after completing metering and data collection.

Council members asked whether the company would consider spreading required revenue increases more evenly across all users; company staff said the model results reflect usage patterns and debt/service costs and that future tiered, usage‑based billing could reduce costs for users who conserve.

No formal action was taken by the council at the meeting; staff said they would work with the company on implementation steps and council members requested additional clarifications and transparency about how cost burdens are assigned to different lot sizes and how future tiered rates will be phased in.