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How American Fork's proposed irrigation billing would work: base rates, tiers and credits
Summary
Staff proposed a two-part approach: a conveyance credit from shareholder-owned shares and a reduced year-round base rate to recover system O&M; the billing system will apply proportional credits and tiered usage charges once a homeowner exceeds their allocated acre-feet.
City finance staff and the Council spent significant time on July 7 clarifying how the proposed billing mechanics would operate under the revised shareholder agreement. Under the proposal, a property’s fixed charge (base rate) would be determined by lot square footage; qualifying shareholders would pay one-half of that standard base rate while receiving a Tier 1 water allowance tied to their owned shares.
Finance Director Anna Montoya explained the existing billing system already calculates discounts proportionally based on the amount of water represented by a property's irrigation shares and can reduce a fixed charge to zero when sufficient shares exist. Ms. Montoya said the primary change would be in usage-rate structure, where shareholders apply owned acre-feet toward consumption before usage charges apply.
Council and staff reiterated that usage rates would be charged only after a property exceeded its Tier 1 allocation and that shareholders could apply additional shares either to increase Tier 1 or further reduce base charges, subject to administrative limits and existing policy prohibiting the creation of new shareholder accounts.
