South Salt Lake utilizes a Transportation Utility Fee to fund critical roadway maintenance and infrastructure projects, following the implementation of an ordinance approved by the City Council in 2025. The fee structure is based on property user type and building square footage to ensure equitable funding for the city's 15-year roads plan.
Funding for Infrastructure Maintenance
The Transportation Utility Fee was established to provide South Salt Lake with additional revenue sources required to pay for critical roadway projects. According to the City of South Salt Lake, the fee ensures the integrity of transportation infrastructure within the city limits. The city noted that a lack of adequate funding for maintenance often leads to deferred projects and increased repair costs, which can impact public safety and daily transportation for the community.
Long-term Roadway Planning
The city's Public Works Capital Improvement Plan identifies 69 street projects, 47 of which represent 68% of the projects that improve streets providing access to licensed businesses. These 69 streets account for 85% of the projected costs of the city's 15-year roads plan. While the city has a higher quantity of residential streets, officials noted that commercial corridors and arterials are wider and longer, requiring money to be saved over multiple years to complete.
Limitations of Previous Funding
Prior to the implementation of the fee, South Salt Lake primarily relied on state-collected Class C Road Funds and the city's General Fund to pay for road projects. However, the city determined that these funds alone were insufficient to cover projected critical road projects over the next fifteen years. Furthermore, Class C Road Funds restrict which roads and projects can be funded to specific areas, preventing the flexibility needed for necessary improvements in various areas.
A Utility-Based Approach
The City of South Salt Lake stated it did not recommend raising property taxes or transferring additional funds from the General Fund to cover road costs, as doing so would reduce investment in other city projects and services. Instead, the city treats city roads as a municipal utility, similar to water, sewer, and stormwater systems. Funds collected through the Transportation Utility Fee are dedicated exclusively to streetlights, road repairs, construction, maintenance, and related infrastructure within city boundaries.
Rate Calculation Methodology
The fee rate is calculated based on the property owner's user type, which includes residential, office business, commercial/retail business, and industrial. For residential users, an Estimated Residential Unit (ERU) was assigned based on estimated daily trips with a single-axle vehicle. This ERU is then weighted for increased axle load and estimated daily trips for other user types and multiplied by the monthly rate per 1,000 square feet.
Fee Rates and Exemptions
Specific monthly rates per 1,000 square feet include $1.71 for residential users, $6.80 for office businesses, $13.30 for commercial/retail businesses, and $15.89 for industrial users. For example, a commercial/retail business with a building size of 4,300 square feet would have a monthly fee of $93.14. While most users are charged, the City Council adopted policies to exempt certain user types, such as places of worship and specific nonprofit organizations.
Implementation Timeline and Outreach
The implementation process involved several stages of public outreach and official action. On June 11, 2025, EFG Consulting presented findings from a Transportation Utility Fee Analysis during a City Council public meeting. In July 2025, the city notified the public via utility bill attachments regarding a public comment session scheduled for July 23, 2025. During that July 23, 2025, meeting, the City Council approved the TUF ordinance with no public comment received. Following this, the city sent direct postcard mailers to property owners in February 2026 as a reminder of the fee's implementation starting in February, which appeared on March utility bills.
