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Bountiful adopts $104 million fiscal 2027 budget, OKs water and electric rate increases
Summary
On June 9, 2026 the Bountiful City Council unanimously adopted a balanced $104 million FY2027 budget that includes a 3% culinary water rate increase, a 4% electric rate increase and a light-and-power transfer that helps fund general services. Council approved related ordinances and debated wrap-tax grant allocations.
Bountiful — The Bountiful City Council on Tuesday adopted a balanced $104 million fiscal year 2027 budget and approved utility rate increases intended to fund long-term infrastructure needs and routine operations.
The council voted unanimously to adopt Ordinance 2026-06, which includes final FY2027 budget numbers, and earlier approved Ordinance 2026-05 covering employee compensation changes. Key moves in the package include a 3% increase in culinary water rates, a 4% increase to electric rates (applies to metered sales and the monthly customer charge), and continuation of a transfer from the Light & Power enterprise fund to the general fund. Staff said the transfer supports police, fire, parks, street maintenance and other core services without increasing property taxes.
Why it matters: City staff described the utility increases as necessary to keep enterprise funds self-sustaining. Water department presentations cited an urgent need to replace the 100-year-old Mil Creek reservoir and continue multi‑mile pipe replacement work. The power presentation cited rising costs for transformers, poles and other equipment plus major capital work including substation and hydro upgrades.
Details of the budget: Tyson Beck, the city’s finance director, said the FY2027 budget is balanced at $104 million. The package includes a citywide 3% cost-of-living adjustment for employees and targeted market adjustments (about 5%) for certain departments (parks, cemetery, golf) to address retention and recruitment. No property tax increase was proposed; total property tax revenue in the budget was listed at $4.4 million, with the city’s general levy and debt service components detailed in staff presentations.
Utility rate changes and transfers: The water rate increase is aimed at financing the Mil Creek reservoir replacement, ongoing pipe replacement (staff cited a goal of roughly 3.5 miles per year of pipe work in a 180‑mile system), and higher parts and construction costs. The power department explained a 4% across-the-board rate increase that staff estimated would leave Bountiful’s rates competitive with regional suppliers; the increase also included a $1 hike in the annual pole-attachment fee for communications companies. Council also approved an amendment to increase the FY2026 transfer from Light & Power to the general fund by $200,000 and set the FY2027 transfer at roughly $3.29 million.
Public input and council discussion: Two members of the public spoke during budget hearings. Ron Martinson sought clarification about how the power rate and the transfer interact; staff confirmed the 4% increase applies to both metered rates and the customer charge and that a portion of the increase is transferred under the city’s longstanding 10% transfer policy. Gary Davis, who attended several department hearings, thanked staff and council for their work on the budget.
Wrap-tax grants and art funding: Council debated whether to continue an existing policy that dedicates 1% of qualifying capital project costs to public art in addition to a newly proposed 5% wrap‑tax allocation for public art. Council Member Bell questioned a $12,000 wrap‑tax grant to a community garden group as too narrowly targeted; members of the wrap‑tax subcommittee defended seed funding for growing events and programs. The council ultimately adopted the budget as presented; staff noted changes could be made at a future meeting before the statutory adoption deadline if the council desires.
Other formal actions: The council unanimously adopted an ordinance (2026-05) formalizing compensation changes, and unanimously approved Resolution 2026-11 authorizing the city to pick up an additional 1.25% URS (Utah Retirement Systems) contribution for tier‑2 public safety employees (staff said the pickup is included in the budget and has minimal immediate fiscal impact at current URS rates).
What’s next: Staff will implement rate changes as required by ordinance and administrative schedule; the council may consider follow-up adjustments or line-item changes at the June 23 meeting before statutory deadlines. Public hearings for any future rate‑tier studies or fee changes were discussed by council members as a priority for next year.
