Public Utilities outlines $427.8M budget and multimodal rate increases, including new multifamily sewer charge

Salt Lake City's Public Utilities presented a proposed FY2026-27 budget of $427,786,665 and explained the drivers behind proposed rate changes across four enterprise utilities: water, sewer, stormwater and street lighting.

"The total proposed utilities budget is $427,786,665," Austin Kimmel said in his introduction. Laura Briefer, director of Public Utilities, walked the council through the department's major capital projects, debt service increases, regulatory drivers (including EPA-led lead service-line replacement requirements) and examples of customer impacts under the proposed rates.

Staff proposed a structural change for multifamily sewer billing: a fixed charge of $48.94 per dwelling unit, which staff said would reduce the summertime bill spikes some multifamily customers experienced when meters combined indoor and outdoor use. Public Utilities also proposed a 6% revenue increase for water, a 40% revenue increase for sewer (revenue-based figure), a 20% increase to stormwater, and a 50% revenue increase to the street-lighting utility; staff noted the street-lighting proposal is driven in part by increased costs from wire theft and vandalism and past reliance on reserves.

Council members raised affordability and equity concerns, asked for clearer communication tools (staff said a rate calculator will be available on the department website), and urged work on customer-assistance programs and clearer guidance for multifamily and commercial customers to separate indoor and outdoor use. Staff said they are exploring expanded customer assistance modeled on federal energy-assistance programs and continuing public engagement during the budget process.