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American Fork considers multi-year culinary rate increases to stabilize water capital reserves
Summary
City staff presented a multi-year culinary rate schedule and urged the Council to adopt rates now while delaying implementation to allow public review; staff say culinary reserves could be depleted by 2030 without increases.
City Finance Director Anna Montoya told the American Fork City Council at a March 3 work session that the city’s culinary water fund faces mounting capital needs and that current rates would leave reserves insufficient by 2030 without adjustments. She outlined a proposed multi-year schedule that would raise the base and usage charges for culinary water; the current base is $16.49 with a usage rate of $3.59 per 1,000 gallons.
Council members pressed staff on timing and approach. City Administrator David Bunker said staff prefer adopting the full schedule now while returning each year with an updated fee schedule, but that the Council can choose to approve increases one year at a time. Mayor Bradley J. Frost proposed a compromise: adopt the proposed schedule to set a clear baseline but delay the effective date to provide outreach and education to customers.
The discussion noted reserve pressures beyond the meter program: administrators said the city’s culinary fund balance dropped from roughly $26 million in 2024 to about $10 million in 2026 after other capital spending and debt service, including a $20 million bond for system upsizing and extensions. Montoya said grant dollars covered the meter project, but other culinary capital projects rely on bonded funds and fund balance.
Council Member Ryan Hunter and others debated whether the Council should approve the entire presented schedule or take a phased approach; possible effective dates discussed included January 1, 2027 and April 1, 2026 (the latter tied to an open house and a March 24 Council vote). Montoya said culinary rates will return to Council for formal consideration at the end of March, and staff will run customer scenarios to show bill impacts.
Ending: The Council directed staff to proceed with public outreach and return to the formal Council meeting for consideration of culinary rates at the end of March. No formal vote was taken at the work session.
