South Salt Lake staff present water rate study proposing roughly 20% revenue boost to fund wells, pipes and reserves

South Salt Lake City Council members heard a presentation May 28 on a culinary water rate study recommending multiyear rate adjustments to fund operations, capital improvements and minimum reserve targets.

Sean, a consultant with HDR, told the council the study begins with a 10‑year financial plan and five years of proposed rates tied to the utility's revenue requirement, cost-of-service and rate design. He said the consultant team modeled annual operating needs, planned capital projects and debt service and concluded that revenues must rise to meet those obligations.

The study proposes funding a portion of annual capital reinvestment from rates (an initial target of $550,000 per year that increases to $975,000 over the study period) and assumes about $26.5 million of new borrowing across the next five fiscal years to pay for larger projects. The presentation also included an additional $3 million in out‑year borrowing projected in fiscal year 2032–33. The study uses a 365‑day operating reserve target as the minimum reserve policy and assumes issuing long‑term debt for several large distribution projects and a new well.

"Annual rate adjustments are necessary to fund the…