What do you think about the proposed water rates?

On February 11th, the City Council will vote on tiered water rates. For detailed information, please see the agenda materials. The Council has been studying this issue since August of 2023.  

Why are water rates proposed to be raised? 

The water system needs to be repaired (a few pipes are over 100 years old, and some could burst anytime). We need to start repairs now so we’re not caught in an emergency later. The proposal is to increase water fees and rates to address inflation, infrastructure needs, and ongoing maintenance.  

Why tiered rates? 

Tiered rates are a way of basing the cost of water on how much a property actually uses. High usage isn't just about the cost of the water itself—it puts more strain on the City's water infrastructure (the cost of pipes, pumps, treatment, etc.). With tiered rates, the basic amount of water for essential needs (cooking, drinking, bathing, etc.) is kept affordable, while higher rates kick in only for excessive use. State law requires the City to use a tiered structure.  

What are the proposed rates? 

Three main factors determine how much you pay for water: 

1. Property Type: Whether the property is residential or non-residential 

2. Meter Size: Different-sized meters can handle different water flow rates. Larger pipes have a higher base rate due to greater system impact. (The base rate is a fixed charge that every property pays regardless of how much water they use. It covers the costs of maintaining and operating the water system.) 

3. Water Usage: The more water you use, the higher tier you enter.  

UPDATE: Rather than drastically increasing water rates all at once, the proposal is to spread out increases over the next few years. The proposal is a 12% increase for the first year, with additional increases scheduled for subsequent years. Please see the charts below for the scheduled rates. The City Council can choose not to follow this schedule; however, there is a need for an increase as indicated by the Water Master Plan, as studied by the consultant, and recommended by Public Works. Our current rates will not support the infrastructure maintenance required.

Residential Rates 

Base Rates (based on meter size) 

 

Residential Tier Volume Breaks (based on meter size and how much water you use, in thousand gallons) 

 

Tier Volume Costs ($/thousand gallons) 

 

Note: In 2025, the average household water bill would increase from $48 to $54 per month ($6 monthly increase). 90% of Provo residents use fewer than 55,000 gallons per month in the peak summer months, meaning they would likely not enter the highest tier. 

Tiered rates do not mean that once you hit the threshold, all your water is charged at the higher price. Instead, each tier only applies to the water used in that range. For example, a household using 12,000 gallons/month pays Tier 1 rates for the first 10,000 gallons, then Tier 2 rates for the next 2,000. 

Non-Residential Rates 

Base Rates (based on meter size) 

 

Non-Residential Tier Volume Breaks (based on meter size and how much water you use, in thousand gallons) 

 

Tier Volume Costs ($/thousand gallons) 

 

Will duplexes/triplexes automatically be in a higher tier? 

Most housing units are required to have a separate water meter for each unit. This means that, in most cases, each household is billed individually based only on their own water usage. However, some older duplexes and triplexes share a single meter, meaning all units on that meter are billed together. In these cases, it is generally expected that the cost savings from sharing other household expenses will help offset a higher water bill. 

What do you think? 

Feedback provided below will be shared with the City Council.