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As proposed, the fees would go up 4% for the next fiscal year and 3% in 2028. City Manager Adam Lenhard said the move is an attempt to win back lost revenue from a rate decrease for single family homes which took effect in July of 2025.
“Last year, there was an adjustment, a large adjustment, downward in the rate,” Lenhard said on KPCW’s "Local News Hour" April 29. “It actually reduced revenues to the water fund by about $2.4 million. I think it's fair to say that the decrease in revenue was probably a bit steeper than we had anticipated. This is a bit of a correction.”
Other water issues coming down the pipe include a discussion of raising impact fees on new development. The fees offset the water demands of growth.
Proposed rates would increase water impact fees by nearly 60%. The city has not updated the rates since 2014, and Lenhard said the change is overdue.
“Were it not for impact fees, then our existing water users would have to pay for that new growth. We do think that it's important that growth pays for itself,” he said. “So the fee, typically I would recommend the council look at them more often. It's been 12 years, and if we adjust them on a more frequent basis, we can make sure that growth is paying its fair share.”
Capital projects round out Thursday’s agenda. During its work session, the council will provide feedback on the Little Kate Road pathway project, which removes a bike lane along the street to create a multi-modal pathway.
Deputy City Manager Jodi Emery said residents have raised concerns about mixing pedestrian and bike traffic.
“And so, some of the path management strategies that the team has considered include striping, signage, education, enforcement coordination amongst all of our departments, as well as doing bicycle speed collectors,” she said.
A discussion of the 2027 budget will include a consideration of up to $75 million in bonds for work at Bonanza Park, to be paid back through transient room tax collections.
The project’s contractor, Brinshore Development, will foot the bill for the mixed-use development currently before the planning commission. City money would fund supporting features of the site, said Emery.
“What that fund gives the council the ability to do is influence some of the additional items that a developer wouldn't normally consider. Things like the green space, the plaza, infrastructure, parking, additional parking, site improvements, and density choices,” Emery said.
Also Thursday, council is expected to extend Recycling Utah’s Bonanza Park lease until March of 2027, easing the organization's transition to its future Silver Summit home.
Lastly, council will hear an update on designs for the Snow Creek Tunnel, a project begun in 2007 to put a pedestrian path under Kearns Blvd.