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Public Utilities presents $35M budget; proposes $2.50/month stormwater rate increase to fund pipe replacements
Summary
Sandy’s Public Utilities Department presented a roughly $35 million tentative budget for 2025–26 and proposed a $2.50-per-ERU stormwater rate increase to replenish reserves and fund priority capital projects, including corrugated metal pipe replacement and neighborhood drainage projects.
The Sandy City Public Utilities Department presented its 2025–26 tentative budget to the City Council on May 20, 2025, outlining roughly $35 million in total spending across water, stormwater and street lighting funds and proposing a stormwater rate increase intended to shore up capital funding.
Myrna Groomer, the city’s business services manager for public utilities, told the council the department’s overall budget is “about $35,000,000” for the upcoming fiscal year, with water comprising roughly $28 million, stormwater about $6.4 million and street lighting approximately $1.1 million. She described a portfolio of rising operating costs — notably a Metro Water wholesale increase, higher Rocky Mountain Power charges and inflation for parts and services — that are pushing up baseline expenses.
On stormwater specifically, Groomer said the department is proposing a $2.50 monthly increase per Equivalent Residential Unit (ERU). She said the increase would generate about $1.7–$1.8 million in additional revenue, with roughly 60% directed toward capital/expansion projects (neighborhood projects, corrugated metal pipe replacement and floodplain work) and the remainder supporting operations. Zions Bank completed a stormwater rate study that the department used to scope the increase and forecast a multi‑year program of smaller annual increments following the initial increase.
Groomer and Public Utilities staff said stormwater fund balance is down to a level that meets a 90‑day operating target only after prior drawdowns; without additional revenue the department warned it would delay or cancel capital replacements. Among the projects called out for funding are neighborhood detention work, a Tall Pines Cove storm drain repair, and continued corrugated metal pipe (CMP) replacement — an item staff said is a priority because CMP failures can trigger sinkholes and localized flooding.
On the water side, staff reported higher Metro Water purchases (a roughly 5% increase year‑over‑year), additional well power costs tied to running wells more frequently, and $5.1 million proposed for water main replacements. Groomer said the department prioritized three mainline projects in 2025–26: Cassell Drive, Sunburn Lane and 300 West. The water fund also includes one‑time purchases and multi‑year savings for larger fleet or generator units the department said are needed for system resilience during outages.
Council members asked about the scale and timing of the rate proposal and potential tradeoffs. Tom Ward, public utilities director, explained the department’s objective is to move from reactive repairs to a more preventive asset‑management approach, which will require sustained revenue increases over multiple years to reach funding targets identified in consultants’ master plans.
Groomer and Ward said there is no water rate increase in the tentative budget for this cycle; however, the department plans to monitor summer sales and could return to the council in the winter with a request if revenue levels fall short.
If the council approves a stormwater rate increase, staff said the extra revenue would be allocated roughly 60% to capital expansion and 40% to operations and administration, with an initial target to restore reserves to a 90‑day operating balance while returning capital funding closer to the levels needed to address a multi‑year pipeline replacement backlog.
