The Murray City Council has approved a series of water rate increases aimed at addressing the city’s aging infrastructure, ensuring future water supply and keeping up with rising operational costs. The decision, reached during the council’s March 4 meeting, will raise water fees incrementally over the next several years, despite concerns from residents and local officials about affordability.

The approved rate hikes will begin with a 20% increase for the next two years, followed by 10% in 2027, 5% in 2028, and 2% annually thereafter. City officials emphasized that without these adjustments, the water fund would face a deficit by 2026, making essential infrastructure upgrades impossible.

“We end up not being able to fund our internal capital projects that need to take place,” Murray City Wastewater Superintendent Ben Ford said, referencing the impact of inaction on infrastructure improvements. “A project that’s going to cost $3 million today, three years down the road is going to cost $3.5 million.”

The decision comes as Murray City faces mounting challenges with its water infrastructure. The October 2024 Water Master Plan, a key guiding document for water management, identified multiple deficiencies, including aging pipelines, declining well capacities and outdated storage reservoirs.

Among the proposed capital projects is the development of a new well at Winchester and 1200 West, which would provide additional water supply for the city’s growing southwest region. Officials also cited the need to replace older steel water mains, rehabilitate aging reservoirs and improve well efficiencies.

“We’d like to develop a new well at Winchester and 1200 West to support a new park, peak day demand issues and provide the source redundancy in the southwest area of our city,” Water Superintendent Aron Frisk said. “We will meet projected demands at buildout in 2065 with a 20% water source reserve.”

City officials argued that Murray will continue to have some of the lowest water rates in Salt Lake Valley. A typical single-family home will see an average increase of about $4 per month, with commercial users experiencing higher adjustments based on consumption.

“With our proposed rates we will remain the most affordable water in Salt Lake Valley. The average single-family home will see an increase of about $4 per month from this rate increase,” Frisk said. “It’s comparable to one of my cheeseburgers… I had at lunch today.”

In addition to residential rate hikes, the council approved an update to the city’s impact fee structure, shifting more of the financial burden onto developers. Previously, impact fees were calculated based solely on meter size; the new structure bases fees on historical water usage patterns, differentiating between single-family homes, multi-family developments and non-residential users.

Under the revised fee schedule, a new single-family home will now pay a $3,800 impact fee, a slight increase from the previous $3,720 charge. Developers of multi-family units will now be assessed fees based on per-door indoor usage, while outdoor water use will be charged per irrigated acre.

To mitigate financial strain on residents, city leaders are exploring additional funding mechanisms, including a potential $6 million bond in 2026. The city is also actively pursuing state and federal grants to help finance infrastructure projects, particularly for the Winchester well development.

“Is there any way to avoid the bond if we can get a grant for the well?” Councilmember Adam Hock asked.

City officials confirmed that a grant application is being managed through the mayor’s office.

The council’s decision to approve the rate hikes and impact fee changes underscores a growing need for cities to modernize aging infrastructure amid rising costs. While the financial impact on residents is undeniable, officials maintain that these measures are necessary to sustain the city’s water system for future generations.

“We’re raising rates because we’re saving water. Everybody’s doing their thing in their yard and that’s where we get our revenue from; from the water and people are doing xeriscaping,” Councilmember Pam Cotter said.

The motion for the new rates passed unanimously and will go into effect April 2025. λ