March 2020 | Vol. 6 Iss. 03
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CITY COUNCIL APPROVES A SEWER FEE INCREASE By Bill Hardesty | b.hardesty@mycityjournals.com
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fter more than a year of discussion, the South Salt Lake City Council approved a $2 per 1,000 gallons of winter water use fee increase at their meeting on Feb. 12. It takes effect on July 1. This affects SSL residents north of Millcreek.
HISTORY AND THE WHY
In 2017, Central Valley Water Reclamation Facility (CVWRF) embarked on a multi-year repair and improve project. These changes at CVWRF are the result of new federal and state regulations. The cost of these changes is estimated at $180 million. SSL is a part member of the CVWRF, and the city’s part of the price tag is estimated at $11,248,000. SSL is paying this by getting a zero-percentage loan from the State Division of Water Quality (DWQ) for $9,248,000. The city was also awarded a hardship grant for $2 million. One stipulation for the loan is that SSL must show they can pay the annual payment of $463,000. In addition, DWQ requires the funding for the payment needs to be at 1.25% of the loan amount. This requires about $580,000 in new revenue. The new sewer fee will generate around $630,000 to $640,000, which allows some wiggle room if needed. “We must show that we have sufficient funds to pay for the financing,” Kyle Kershaw, the director of finance, said. The bonds are scheduled to close by the end of February.
Work at Central Valley Water Reclamation Facility requires a sewer fee increase in SSL. (Bill Hardesty/City Journals)
Council member Natalie Pinkney asked Kershaw the average water use. He estimated for a family it is about 4,000 to 5,000 gallons a month. This means for most families the sewer increase will be $8 to $10 a month. IMPACTS Kershaw mentioned that users of the city water system do “None of us want to do this,” Council Chair Sharla By- pay higher fees than most because the costs are spread across num said.
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a smaller number of users. Bynum mentioned that at a recent CVWRF board meeting, it was reported that the two lowest bids came in 28% higher than the original bid. This is due to the robust economy, making prices rise. The result is that more sewer fee increases are planned in fiscal year 2024 and fiscal year 2027 to pay for these increased costs. Continued page 08
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