Salt Lake City’s Department of Public Utilities has proposed rate increases for water, sewer, stormwater, and street lighting to fund the operation, maintenance, and replacement of critical infrastructure. The rates, which were approved by City Council, took effect July 1, 2026.
The proposed increases are driven by the need to maintain and upgrade aging systems. Many of the city's three drinking water treatment plants and its single sewer treatment plant are over 70 years old and require repair or replacement. Additionally, the city is replacing its only sewer treatment plant to meet new water quality requirements at a cost of nearly a billion dollars.
Water rates are designed to keep the drinking water system safe and reliable. The city manages more than 1,000 miles of pipe and conducts over 16,000 tests each month for 90 different contaminants. To encourage conservation, water is priced using a tiered pricing system where higher usage results in higher costs per unit. Customers located outside Salt Lake City municipal boundaries pay 35% more for water rates because they do not pay Metropolitan Water District of Salt Lake and Sandy taxes or cover specific risk liabilities.
Sewer rates are increasing to fund the replacement of a 65-year-old treatment plant and to address rising labor and material costs. The sewer system includes nearly 700 miles of pipe, with some lines dating back to the 1890s.
Stormwater rates are increasing to repair and replace older pipes, drains, and other system components. These rates are based on property type and size using a standard unit called an Equivalent Residential Unit (ERU).
Street lighting rates are also increasing to cover rising maintenance and infrastructure costs. The city maintains more than 16,000 street lights, and officials noted that copper wire theft has impacted costs.
Public Utilities operates as an enterprise fund, meaning user fees for these services cover operation, maintenance, and capital costs rather than tax money. Developers are required to pay connection fees to cover the cost of any new or upgraded infrastructure needed for their specific projects.
For residents facing financial hardship, the department partners with local organizations and participates in the Salt Lake County tax abatement program for water, sewer, and stormwater. The Project Water ASSIST program is also available to help customers at risk of disconnection.
