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Beaver City council hears update on proposed state drinking-water fee and possible transportation utility fee
Summary
Council member Owen Spencer summarized a state bill giving the state drinking-water agency authority to assess per-meter fees and warned of a new transportation utility fee under consideration; he estimated local fiscal impacts and listed start/collection dates discussed at a recent Legislative Policy Committee meeting.
Beaver City council member Owen Spencer told the council an item from a recent Legislative Policy Committee meeting could raise local water costs and that state-level action on transportation utility fees is also likely to resurface.
Spencer said the state drinking-water agency, under an item he referred to as “SB 80,” would be authorized to charge a per-meter fee and described a rate structure he saw in the draft: “a base rate ... $35 for the first 10,000 gallons ... and then ... 3¢ for every ... thousand gallons after that,” and he described an example for the city’s 2024 usage that yielded a roughly $7,067 annual charge for the city’s system. “It starts 07/01/2026, and they'll collect the fee 07/01/2027,” Spencer said.
Why it matters: Spencer warned the charge would likely be passed through to local customers, meaning “we'd have to raise everybody's water bill,” and that the city should prepare to implement billing changes and possible exemptions. He also said the state agency’s remaining federal funding has been reduced and the agency is looking to fees to avoid cutting services.
Details from the meeting: Spencer broke down the example he reviewed: the city’s reported 2024 usage of about 222,000 gallons produced the $7,067 annual assessment under the published schedule; dividing that sum across meters produced a modest per-meter monthly impact—he estimated “somewhere around 30¢ a month,” depending on the number of meters. Spencer noted the city may not qualify for exemptions listed in the draft (for commercial or agricultural meters) and said the process for claiming exemptions was not clear in the materials he reviewed.
On transportation utility fees, Spencer said stakeholders are monitoring a possible resolution or bill this session and that churches have sought exemptions from a road‑use fee. “The biggest thing right now is the church wants an exception to not be in charge of the utility fee,” he said, and added the council will watch proposed language to determine whether to pursue a local approach and to prepare to adjust if the Legislature acts.
What the council asked and next steps: Council members asked whether the state explained how the collected fees would be used; Spencer summarized the state agency’s budget picture, saying “their budget's about 5 and a half million dollars. Most of that comes from the federal government ... the feds provide the other 4,000,000, and they're trying to make up the difference.” He recommended staff track the bill language, prepare billing options (including a separate line item on bills), and seek training or guidance on exemption rules before the July 2026 implementation date.
The council did not take a formal vote on policy related to the bill during the meeting; Spencer asked staff to watch for draft legislation and report back so staff and council can estimate local fiscal and billing impacts.
