Fruit Heights staff propose modest water-rate increase to cover rising contract and materials costs

City staff presented a proposed increase to Fruit Heights' culinary water rates during a public hearing on Feb. 3, saying the adjustment is intended to cover rising contract water purchase costs and higher capital and maintenance expenses.

Staff explained that Fruit Heights purchases contract culinary water from Weber Basin, which has recently signaled multi-year increases; staff estimated the city's repurchase cost rose about 7.5% this year, bringing the city's repurchase costs close to $344,000 with projected increases to roughly $385,000 and $424,000 in subsequent years. To cover these and other rising costs (a hydrant installation cost cited rising from about $4,000 before 2020 to roughly $10,000), staff proposed an approximate 4.5% increase in water rates.

During questions, staff said annual water revenue received is about $1,150,000 and the water fund budgeted expenses are approximately $1,050,000, meaning the enterprise fund currently runs close to break-even but needs additional revenue to fund projects without using debt. Residents asked about base service charges, per-thousand-gallon tiers and whether the city previously transferred enterprise fund balances to the general fund; staff clarified that the water fund is enterprise-restricted and does not transfer routinely to the general fund except as a loan or under specific circumstances.

Council members and staff discussed alternatives to covering repurchase increases, including drilling wells and the high cost and water-quality risk of that option. The council also discussed the timeline for adoption; a council motion to adopt updated culinary water rates (Resolution 2026-02) was introduced during the meeting, but the transcript excerpt does not include the roll-call vote outcome.