Orem releases tentative 2025–26 budget; utility base-rate increases proposed for water and sewer

Orem City staff presented a tentative fiscal year 2025–26 budget totaling roughly $177 million and opened a public hearing; council set a June 10 public hearing for final adoption. The tentative plan funds capital projects, fleet replacement and ongoing operations and proposes utility fee adjustments intended to finance wastewater-treatment upgrades, service expansions and partner-city allocations.

Highlights: - Tentative total budget: about $177 million (roughly $17 million above the current fiscal year), driven largely by enterprise (utility) funds and capital projects. - Sewer/water-reclamation: staff proposed a significant base-rate increase to seed planned upgrade projects at the water reclamation facility; staff said part of the increase reflects costs shared with Vineyard and Linden, which will pay their share of treatment capacity. - Water: proposed base-rate increases and new fees tied to regional projects (Jordanelle/Deer Creek) and growth-related impact fees. - Fleet and capital: $2.8 million of fleet replacement and about $32 million of capital projects were included in the tentative budget; some large capital items are expected to be financed or staged across multiple years. - General fund: modest revenue increases (sales tax and property tax estimates) and budgeting for personnel step increases and health-insurance cost pressures.

Council and staff said the utility rate proposals were informed by comparative benchmarking and regulatory drivers; staff noted the city remains mid- to lower-range compared with many regional utilities even after the proposed increases. The council unanimously set the final-budget hearing for June 10. Staff will publish the full proposed budget document and respond to council questions during the interim work sessions.

What residents should know: The council adopted the tentative budget and scheduled final adoption for June 10. Staff said residents will receive more detailed budget documents and that the council remains open to policy direction before final adoption. Staff also highlighted that some increases will be offset by payments from partner cities for shared treatment capacity.