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Vernal City proposes tiered water rates to fund $80–$100M in system upgrades
Summary
City staff presented a tiered rate plan April 29 to create a replacement fund and encourage conservation; staff said households using 4,000 gallons or less would see little change, while high-volume users would pay significantly more to support an estimated $80–$100 million in upgrades.
Vernal City officials on April 29 outlined a proposed tiered water rate structure intended to fund major infrastructure upgrades and encourage water conservation.
Public Works Director Keith Despain and Water Superintendent Ivan Merrell told the Vernal City Council and assembled public that the city’s culinary supply is primarily from Ashley Springs with Red Fleet Reservoir used as an expensive but important supplemental source. Merrell said the system requires “an estimated $80 to $100 million in infrastructure upgrades” to meet current standards and that current rates are not sufficient to support the needed investment.
Despain explained the proposed residential model would reduce the base allocation to 4,000 gallons, then apply progressively higher per-thousand-gallon charges as usage increases; the city’s prior base included 8,000 gallons. Staff said the change is intended to protect low-volume users while making high-volume consumption more costly. Despain also described per-unit/per-door billing for hotels and a separate tiered schedule for commercial and institutional users.
Merrell emphasized the equity and conservation goals behind the proposal and the enterprise-fund nature of the utility. “Households using 4,000 gallons per month or less would see little to no increase, and in some cases a slight decrease, in their monthly bill,” he said, adding that the structure is designed to encourage reduced usage without unduly burdening fixed-income residents.
City staff said leveraging a local replacement fund could improve competitiveness for outside grants and financing; staff estimated a target of roughly $1 million per year to seed such a fund. City Manager Quinn Bennion noted that state funding reviewers consider local water rates and that meeting certain affordability benchmarks can affect eligibility.
The Council kept the record open for public comment and directed staff to refine the proposal with input from businesses and institutional users; staff expects to return the item for further consideration at the May 20 meeting.
