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Layton Council pushes back on proposed statewide water fee, warns city would pay and not likely see funds returned
Summary
Council members spent substantial time critiquing a proposed state water-user fee and an associated statewide project list. Staff said the proposed fee—framed as 3% of median adjusted gross income or roughly $16.32/month per household—could force local rate increases and not assure Layton would receive project funds.
Layton City Council devoted extended discussion to a proposed statewide water‑user fee and a state-maintained list of projects that the Division of Drinking Water and the Water Development Coordinating Council compiled. Staff characterized the proposal as three components: an existing discretionary sales-tax authority portion, an ad valorem or property-tax style component under development, and a new per-usage water/sewer user fee that staff summarized as roughly $16.32 per household per month under one scenario presented.
Mayor and council members said they were troubled by several features of the plan. Staff explained that the proposal’s project list aggregated hundreds of projects statewide and that a municipality must place a project on the list to be eligible for state funding. "If you don't have it on this list, you can't even ask for state funding," a staff member said.
Council members said Layton could be required to raise rates substantially to reach the formula threshold the state is using (presented by staff as a Magi-based threshold) while seeing little or none of the state money return to projects in Layton. One council member said, "Just because somebody gave you money, it doesn't come from the money tree. This is not free money." Another said that if Layton would have to double rates to qualify, it would be better for the city to raise the needed revenue locally and not funnel recurring household payments to a state pool that may favor other jurisdictions.
Staff showed calculations: together Layton's current combined water and sewer charges are roughly $44.73 (water) and $37.00 (sewer) per month; the state’s proposed threshold was described as an ability-to-pay metric (the presentation referenced an EPA standard around 4.5% of MAGI as a hardship). Under the staff’s math, reaching a state 3% MAGI threshold would require very large rate increases and would generate an estimated $21 million annually statewide if broadly applied.
Council members asked staff to prepare a brief, shareable package of Layton projects on the state list, project costs, and a city-side funding scenario showing how the city could fund those projects itself without participating in the proposed statewide fee. Several members asked staff to coordinate with the Utah League of Cities and to bring legislators information before the session to seek changes or opt-out options.
No formal action to adopt or reject the state plan was taken; council members directed staff to compile materials and pursue coordination with other cities and legislators ahead of the legislative session.
