HomeMy WebLinkAboutCouncil Provided Information - 12/2/2025CITY COUNCIL OF SALT LAKE CITY
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COUNCIL STAFF MEMO
CITY COUNCIL of SALT LAKE CITY
TO:City Council Members
FROM: Austin Kimmel
DATE:December 2, 2025
RE: CONSOLIDATED FEE SCHEDULE (CFS) CORRECTION - MISSING TITLE AND
DESCRIPTION
NEW INFORMATION – DECEMBER 2, 2025
Compliance with State Law for fee setting – the lack of proper labeling on the CFS means that the
fee should not have been charged as of July 1. Staff recommendation: credit customers who paid the
increased fee between July 1 and present. (Please note: financial impact info below.)
Steepness of the increase – the steep one-step increase caused surprise to customers, especially
when combined with other rate changes. If the Council does not wish to approve the one-time FY26
increase, it could consider a two- or three-step schedule to phase in the increase. (Please note: financial
impact info below.)
Proper Labeling – the CFS missed key words to indicate the fee is charged per inch. Staff
recommendation: accept the proposed edits to ensure proper labeling on the CFS.
Fee Compliance Issue (#1): Council staff learned that the missing “Per Inch” description from the
Consolidated Fee Schedule (CFS), which prompted the administration’s initial correction request, represents a
more significant issue than originally understood. Utah Code Section 10-8-22 requires municipal water rates to
be set legislatively by ordinance with uniform notice and opportunity for public participation.
before Public Utilities charges the fee and that Public Utilities provide
UPDATED Item Schedule:
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credits for fees paid by customers from the beginning of FY26 up to the adoption date. The increased fire line
fees have been charged to 3,453 customer accounts with fire service lines since July 1, 2025.
Corrected Financial Impact (Related to #1 and #2): During the November 25 briefing, Public Utilities
corrected an earlier revenue estimate. Rather than a $740,237 annual shortfall if the fire line fee increase is not
implemented, the actual shortfall would be approximately $1.7 million annually. If the Council approves the
corrected CFS language and requests credited fees for the six-month period from July 1 through December 2025
(the soonest the Council could adopt the corrected CFS language at this time), it is assumed that approximately
$850,000 would be credited to customers.
Phase-In Options (#2): As requested by Council Members, Public Utilities has analyzed two phase-in
implementation scenarios to mitigate immediate customer impacts:
Two-Year Phase-In: Public Utilities would charge 75% of the FY26 rate in year one, then increase by
56% in year two to reach the full rate.
Three-Year Phase-In: Public Utilities would charge 50% of the FY26 rate in year one, then increase by
80% in year two, and by 95% in year three to reach the full rate.
Council Direction Requested: In summary, Staff is seeking Council direction on two items:
NEW INFORMATION – NOVEMBER 25, 2025
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Based on the phase-in scenarios and financial analysis presented by Public Utilities, the Council has postponed
action on the Consolidated Fee Schedule (CFS) correction to a future meeting, allowing additional time for
review and consideration of options and fiscal impacts.
17.16.520: UNMETERED FIRE PROTECTION PIPES PERMITTED WHEN:
NEW INFORMATION – OCTOBER 14, 2025
ISSUE AT-A-GLANCE
BACKGROUND
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According to the Administration, fire line fees are established in City Ordinance 17.16.520 and have been in
place since at least 1981. The fees are charged per inch of connection size. If not updated, the CFS schedule with
the missing title and description may lead to customer confusion about what the fees cover.
FINANCIAL IMPACT
REDLINED CFS SCHEDULE