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Council adopts updated master fee schedule including water and wastewater increases
Summary
The Sandy City Council adopted Resolution 20 26-12 after a staff report and public hearing, approving modest CPI-based increases across planning and building fees and proposing a 7% water rate and 12% wastewater rate; staff said increases are needed to meet debt-service obligations.
The Sandy City Council voted to adopt Resolution 20 26-12 to update the city's master fee schedule after a staff presentation and public hearing.
Staff told the council the packet includes modest, annual CPI-based increases for planning and building fees (a proposed 2.6% adjustment). The staff report also proposed raising the meter installation fee from $775 to $815 to recover the actual cost of the meter and installation labor. On the water side, staff said project costs have fallen to an estimated $55,000,000 from an earlier $70,000,000 estimate and recommended a 7% water rate increase; staff estimated the average customer (about 700 cubic feet/month) would see approximately a $5.50 monthly increase. For wastewater, staff proposed a 12% increase and estimated an average wastewater customer would pay about $11.84 more per month.
Staff emphasized the increases are intended to preserve compliance with existing loan agreements and meet required debt-service coverage ratios. "When we enter into new loan agreements, the lending agency is typically looking for a coverage ratio of 1.5," the staff member said, explaining that the city needs a cushion above mandatory debt payments to cover operations and unexpected repairs. During the public hearing planning commissioner Art O'Leary asked whether CPI-based increases and current system development charges (SDCs) would ensure developers pay their fair share or shift costs to existing residents; staff responded that SDCs were recently revised and that the SDC methodology apportions costs between new development and existing maintenance.
After questions and clarifications, a councilor moved to adopt Resolution 20 26-12 and the council recorded vocal "ayes." The chair declared the motion passes and staff will implement the fee changes and rate adjustments as adopted.
The council also requested staff continue annual reviews of fees and to return with additional detail about SDC revenue treatment and timing of grant reimbursements. The hearing had been opened for public comment before the vote and closed by council motion prior to final action.
