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Council adopts water‑rate increase to fund aging pipes and projects

South Ogden City Council · September 17, 2024
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Summary

South Ogden council adopted Ordinance 24‑11, approving modest water‑rate increases and a January 1, 2025 effective date to help fund prioritized water‑line replacements and capital needs, generating staff‑estimated recurring revenue for multi‑year projects.

The South Ogden City Council voted unanimously to adopt Ordinance 24‑11, approving changes to the consolidated fee schedule that raise water rates to help fund near‑term capital projects and water‑line replacement.

Staff presented multiple rate scenarios and said the proposed changes would raise the base fee (for example, from $14.33 to $16.00 in one scenario) and adjust tiered usage charges so that the city can prioritize replacement of aging pipes. “The overall impact of this increase equates to about $23,000 a month in additional revenue that would be earmarked for these capital projects,” staff said during the presentation. Council and staff discussed whether to implement the new rates Nov. 1 or Jan. 1; the council selected January 1, 2025 to allow notification to ratepayers.

Council members asked detailed questions about tier boundaries and equity, noting that about 86% of customers fall into the first two tiers. Staff said the city’s five‑year water capital plan shows approximately $6,000,000 in needs and that the proposed rate package would generate roughly $276,000 per year — useful for ongoing replacements but insufficient to fund large single projects without other financing. Council asked staff to model alternative tier cuts and report back but approved the ordinance to ensure steady, incremental funding rather than deferring repairs.

The measure passed on a roll‑call vote with all members present voting yes. The council directed staff to prepare outreach materials and to post rate information to notify customers before the January implementation.