Castle Dale adopts multi-year water-rate plan and approves limited purchase of irrigation shares for new hookups

Castle Dale’s City Council on Dec. 11 adopted a multi-year water-rate plan and approved a negotiated amendment that allows the city to buy a limited pool of irrigation shares for use as impact-fee credits for new connections.

The council voted to adopt Resolution 12-11-25 B, which implements a 7% increase to the city’s bimonthly water rate in 2026 (presented as a rise from $30.20 to $32.10 in the staff chart) followed by automatic 3% increases in 2027–2030. Staff said the 2026 jump covers costs not addressed in recent years and that 3% annual increases thereafter are intended to stabilize budgeting and avoid annual public hearings.

City staff and Jacob Sharp, the Castle Valley Special Service District director, told the council the increases reflect rising labor and parts costs for production and conveyance and are intended to cover operating expenses rather than capital expansion. The council also approved companion resolutions (12-11-25 C and 12-11-25 D) that replace hard-coded numbers in ancillary ordinances with references to the primary water-rate resolution so future adjustments can be applied administratively.

In related action the council voted to rescind Resolution 8-13-2020 C, which previously established connection fees, on the grounds that those provisions are now included in the new rate resolution.

Separately, council members approved an amendment to the city’s water sales agreement with Cottonwood Creek Consolidated Irrigation Company that authorizes Castle Dale to purchase up to 20 irrigation shares on the open market. According to the amendment, the city will hold those shares and charge new culinary/irrigation connections an impact fee equal to the city’s cost for the shares; the city will not sell shares to private buyers. Purchases are limited to maintain a 20-share pool in two-year increments, and the agreement requires both the irrigation company and the city to reapprove the approach at the end of each two-year period.

Council members asked staff to clarify eligibility for receiving shares via the impact-fee mechanism; staff pointed to application requirements and said the policy requires a demonstration of property/parcel within city limits and a connection application before shares would be assigned as part of an impact fee. Council members also discussed the potential financial cost to the city in buying shares and the effect such a pool would have in helping homeowners who otherwise cannot locate water shares on the open market.

The council closed the public hearing on the water-rate proposal before taking the votes. The motions to adopt the water-rate resolution, the companion resolutions and the water-sales amendment were moved, seconded and passed by recorded affirmative votes.