Bountiful holds public hearings on Light & Power fund transfer and proposed water, power rate increases

Bountiful City staff on June 10 opened public hearings on (1) an amendment to this year’s administrative transfer from the Light and Power Fund to the general fund, (2) a proposed FY2026 transfer from the Light and Power Fund to the general fund, and (3) the overall FY2026 budget with proposed water and power rate changes. Council did not take final votes and continued the hearings to June 24.

City finance director Galen Rasmussen and utility staff described the transfers as administrative reimbursements from enterprise funds to the general fund for services such as payroll, accounting, information technology, legal, engineering and public safety support. Rasmussen said the amendment under discussion would reduce the Light and Power Fund’s share to about 8.1% of expenses for the current year and that the FY2026 proposed transfer represents roughly 7.2% of Light and Power Fund budgeted expenses (about $3,000,164). He said the transfers historically were set as a percentage of metered sales and are intended to reimburse the general fund for services that benefit enterprise fund operations.

Public commenter Ronald Mortensen, Ph.D., asked several detailed questions about who pays the transfer, how rates for tax-exempt entities compare with residential or commercial rates, and why Bountiful Power rates differ from Rocky Mountain Power. Mortensen asked, among other things, “Do the non-property taxpayers pay a special non-property taxpayer rate in order to create the total excess revenue needed to cover the $3,000,000 transfer?” and requested written answers and posting on the city website.

Water and power staff then gave technical presentations on the utilities’ capital needs and proposed rate increases. Craig Christensen of the water department said the system serves 11,139 service connections across about 180 miles of mains, 15 reservoirs, 14 booster stations and nine wells. Christensen said the department generates roughly $6.5 million annually from meter sales and that the proposed rate changes would help fund recurring mainline replacement (about 3 to 3.5 miles annually) and major reservoir work, including a multi-phase project at Mill Creek Reservoir to replace deteriorating concrete and maintain service while construction proceeds.

Power department presenters said the FY2026 proposed budget is about $43.9 million and includes a proposed 3% rate increase, a 10% increase in certain fees, and a pole-attachment fee increase from $14 to $15. Power staff outlined lengthy lead times and higher prices for materials (wire up more than 60% according to staff), a backlog of aging poles and underground cable (including legacy bare concentric cable), and planned capital projects such as rebuilding the Northwest Substation and upgrades to hydro control systems. Staff said outages rose in the most recent year but system reliability remains high; many outages were caused by animals and storm damage.

Mayor Pro Tem Matt Murray and staff emphasized that the hearings are informational tonight and that final adoption of the FY2026 budget and any rate ordinances will occur at a subsequent meeting when the mayor and an absent council member can be present. The council voted to continue the public hearings and final budget adoption to the June 24 regular meeting so the public can comment again before adoption.

Residents who submitted questions during the hearings were told to contact Galen Rasmussen or the city manager for follow-up information and written responses.

Looking ahead, the council will hear further public comment and consider formal adoption of the FY2026 budget, associated transfers, and rate ordinances at the June 24 meeting.