Water Rate Updates

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Water Rate Updates

Park City has updated water rates to further encourage water conservation. The update also ensures equity between customer classes (commercial, single-family residential, or multi-family residential). In general, this means that if a rate class uses approximately 40% of the water billed, it will pay approximately 40% of the cost of water. The fees you pay for water service fund the water department and are not used for other municipal use. All users will see an inflationary increase in the energy surcharge.

Included in this month’s Utility Bill is a copy of the new rate structure. Below is a summary of the changes, and ways that you can reduce your water bill.


Single Family Residential Accounts

Since the water rates for Single Family Residential (SFR) customers already had aggressive consumption tiers, there will be minimal impact from the rate changes. In fact, if a SFR customer uses less than 20,000 gallons per month, they will actually see a decrease in their water bill. Customers using more than 20,000 gallons per month will see an increase based on consumption.

No increase to the base rate occurred.


Multi-Family Residential Account

Like Single Family, water rates for Multi-Family Residential already have tiers and the water rate modifications enhance these tiers. The impact varies by meter size, but generally, the cost for below average users will decrease, and the cost for above average users will increase.

No increase to the base rate occurred.


Commercial

Commercial customers will see the biggest impact primarily due to two factors: 1) the Commercial customer class is paying less as a percentage than water used, and 2) there are only two existing tiers for Commercial customers and the second tier is rarely reached.

A 20% base rate increase was adopted for all Commercial customers. Previously, 33% of the total retail water produced by Park City was used by Commercial customers, but only 29% of the total revenue came from Commercial. Under the new rate structure, Commercial customers will contribute 32% of the total revenue.


Irrigation

Like Commercial, water rates for Irrigation only include two consumption tiers. To enhance incentives for water conservation, additional tiers now exist.

Base rate increases of 30% for ¾-inch, 70% for 1-inch, and 100% for 1.5-inch were adopted. Additionally, 1.5-inch, 2-inch, and 3-inch meters are combined into one meter rate, and as a result, 2-inch and 3-inch base rates were decreased to a 1.5-inch base rate. These base rate changes are needed to ensure the percentage of water used matches the percentage of revenue collected from irrigation customers.


Option to reduce your bill

Highest water users will be impacted the most. This reflects Park City’s main approach to water conservation by charging more for high water use to encourage customers to use less. Below are a few ideas to help customers reduce the impact to their water bill.

Use less water

This is the desired outcome of the new water rate structure, and it will save you money.

  • Visit utahwatersavers.com for rebates for toilet replacement and smart controllers.
  • Visit parkcity.watersmart.com with your account number to log in and see your hourly water use. Click on “Take Action” for a personalized list of water conservation activities you can select from to reduce your water use. Click on “Settings” to set up leak alerts, High Use Notifications, Bill Forecast Notifications, or Unplanned Use Notifications to help you manage your water use.
  • Visit parkcity.org/landscape-incentive-program for our landscaping incentive program which pays customers up to $2 per square foot to remove turf grass and replace it with waterwise and firewise landscaping. Email savewater@parkcity.org for questions on the incentive program, or with any other water conservation questions you may have.


Select the best meter rate for your water needs

To help put customers in the optimal water rate structure based on their water needs, Commercial, Multi-Family, and Irrigation customers may choose what meter rate they want to be in without the expense of changing their meter. This will help high-use customers with small meter sizes, and low water use customers with large meters.

Email water@parkcity.org and we can help you select the most cost-effective meter rate for your water needs.




Water Rate Updates

Park City has updated water rates to further encourage water conservation. The update also ensures equity between customer classes (commercial, single-family residential, or multi-family residential). In general, this means that if a rate class uses approximately 40% of the water billed, it will pay approximately 40% of the cost of water. The fees you pay for water service fund the water department and are not used for other municipal use. All users will see an inflationary increase in the energy surcharge.

Included in this month’s Utility Bill is a copy of the new rate structure. Below is a summary of the changes, and ways that you can reduce your water bill.


Single Family Residential Accounts

Since the water rates for Single Family Residential (SFR) customers already had aggressive consumption tiers, there will be minimal impact from the rate changes. In fact, if a SFR customer uses less than 20,000 gallons per month, they will actually see a decrease in their water bill. Customers using more than 20,000 gallons per month will see an increase based on consumption.

No increase to the base rate occurred.


Multi-Family Residential Account

Like Single Family, water rates for Multi-Family Residential already have tiers and the water rate modifications enhance these tiers. The impact varies by meter size, but generally, the cost for below average users will decrease, and the cost for above average users will increase.

No increase to the base rate occurred.


Commercial

Commercial customers will see the biggest impact primarily due to two factors: 1) the Commercial customer class is paying less as a percentage than water used, and 2) there are only two existing tiers for Commercial customers and the second tier is rarely reached.

A 20% base rate increase was adopted for all Commercial customers. Previously, 33% of the total retail water produced by Park City was used by Commercial customers, but only 29% of the total revenue came from Commercial. Under the new rate structure, Commercial customers will contribute 32% of the total revenue.


Irrigation

Like Commercial, water rates for Irrigation only include two consumption tiers. To enhance incentives for water conservation, additional tiers now exist.

Base rate increases of 30% for ¾-inch, 70% for 1-inch, and 100% for 1.5-inch were adopted. Additionally, 1.5-inch, 2-inch, and 3-inch meters are combined into one meter rate, and as a result, 2-inch and 3-inch base rates were decreased to a 1.5-inch base rate. These base rate changes are needed to ensure the percentage of water used matches the percentage of revenue collected from irrigation customers.


Option to reduce your bill

Highest water users will be impacted the most. This reflects Park City’s main approach to water conservation by charging more for high water use to encourage customers to use less. Below are a few ideas to help customers reduce the impact to their water bill.

Use less water

This is the desired outcome of the new water rate structure, and it will save you money.

  • Visit utahwatersavers.com for rebates for toilet replacement and smart controllers.
  • Visit parkcity.watersmart.com with your account number to log in and see your hourly water use. Click on “Take Action” for a personalized list of water conservation activities you can select from to reduce your water use. Click on “Settings” to set up leak alerts, High Use Notifications, Bill Forecast Notifications, or Unplanned Use Notifications to help you manage your water use.
  • Visit parkcity.org/landscape-incentive-program for our landscaping incentive program which pays customers up to $2 per square foot to remove turf grass and replace it with waterwise and firewise landscaping. Email savewater@parkcity.org for questions on the incentive program, or with any other water conservation questions you may have.


Select the best meter rate for your water needs

To help put customers in the optimal water rate structure based on their water needs, Commercial, Multi-Family, and Irrigation customers may choose what meter rate they want to be in without the expense of changing their meter. This will help high-use customers with small meter sizes, and low water use customers with large meters.

Email water@parkcity.org and we can help you select the most cost-effective meter rate for your water needs.




Questions?

Have questions about proposed water rate changes? Ask them here! 

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  • Share Are the base rates changing? Will the energy surcharge go away? I am a business with 3 water meters; will we be judged in total or per meter? (all are 2" meters) on Facebook Share Are the base rates changing? Will the energy surcharge go away? I am a business with 3 water meters; will we be judged in total or per meter? (all are 2" meters) on Twitter Share Are the base rates changing? Will the energy surcharge go away? I am a business with 3 water meters; will we be judged in total or per meter? (all are 2" meters) on Linkedin Email Are the base rates changing? Will the energy surcharge go away? I am a business with 3 water meters; will we be judged in total or per meter? (all are 2" meters) link

    Are the base rates changing? Will the energy surcharge go away? I am a business with 3 water meters; will we be judged in total or per meter? (all are 2" meters)

    dallas asked over 1 year ago

    Base rates for Single Family and Multi Family are not proposed to change. Proposed base rates for Commercial would be increased by 20%. Proposed base rates for Irrigation would vary based on meter size. See pages 6 and 7 on the February 16, 2023 Council presentation. Each of your three water meters should have a base rate and will be subject to the base fee increase.

  • Share Is this proposal supposed to be revenue neutral, or will it increase the total revenue? Because if it raises the rates on commercial and irrigation users to better match their consumption percentages, wouldn't this increase the total revenue? That would happen unless the residential rates are lowered. Is the plan to keep the increase or reduce the residential rates to keep it revenue neutral? on Facebook Share Is this proposal supposed to be revenue neutral, or will it increase the total revenue? Because if it raises the rates on commercial and irrigation users to better match their consumption percentages, wouldn't this increase the total revenue? That would happen unless the residential rates are lowered. Is the plan to keep the increase or reduce the residential rates to keep it revenue neutral? on Twitter Share Is this proposal supposed to be revenue neutral, or will it increase the total revenue? Because if it raises the rates on commercial and irrigation users to better match their consumption percentages, wouldn't this increase the total revenue? That would happen unless the residential rates are lowered. Is the plan to keep the increase or reduce the residential rates to keep it revenue neutral? on Linkedin Email Is this proposal supposed to be revenue neutral, or will it increase the total revenue? Because if it raises the rates on commercial and irrigation users to better match their consumption percentages, wouldn't this increase the total revenue? That would happen unless the residential rates are lowered. Is the plan to keep the increase or reduce the residential rates to keep it revenue neutral? link

    Is this proposal supposed to be revenue neutral, or will it increase the total revenue? Because if it raises the rates on commercial and irrigation users to better match their consumption percentages, wouldn't this increase the total revenue? That would happen unless the residential rates are lowered. Is the plan to keep the increase or reduce the residential rates to keep it revenue neutral?

    zak asked over 1 year ago

    The goal has shifted since the first rate proposal in 2022. In 2022, the proposal was crafted as revenue neutral. Due to the inflationary environment, in 2023 (Fiscal Year 2024) revenue will need to increase by approximately 10% to allow the water department to continue replacing aged infrastructure, purchasing supplies, and providing water service. Under current rates Commercial and Irrigation users are paying less than their share of consumption, and Residential are paying more than their share of consumption. This imbalance is corrected in the current proposal, which means that the increase or rebalancing of Commercial and Irrigation users will mean that only minor changes are made to Single Family Residential customers.

  • Share In October we replaced our grass turf lawn with stones and artificial turf. Are we eligible for the rebate being offered this spring? on Facebook Share In October we replaced our grass turf lawn with stones and artificial turf. Are we eligible for the rebate being offered this spring? on Twitter Share In October we replaced our grass turf lawn with stones and artificial turf. Are we eligible for the rebate being offered this spring? on Linkedin Email In October we replaced our grass turf lawn with stones and artificial turf. Are we eligible for the rebate being offered this spring? link

    In October we replaced our grass turf lawn with stones and artificial turf. Are we eligible for the rebate being offered this spring?

    Sherry Stohler asked over 1 year ago

    Unfortunately, no. The city is not providing incentives retroactively.

  • Share What is the price impact on irrigation using 2” and 3” after the changes? (They are to be lumped in with 1.1/2” which goes up by 100% but does that represent a net increase compared to current levels?) on Facebook Share What is the price impact on irrigation using 2” and 3” after the changes? (They are to be lumped in with 1.1/2” which goes up by 100% but does that represent a net increase compared to current levels?) on Twitter Share What is the price impact on irrigation using 2” and 3” after the changes? (They are to be lumped in with 1.1/2” which goes up by 100% but does that represent a net increase compared to current levels?) on Linkedin Email What is the price impact on irrigation using 2” and 3” after the changes? (They are to be lumped in with 1.1/2” which goes up by 100% but does that represent a net increase compared to current levels?) link

    What is the price impact on irrigation using 2” and 3” after the changes? (They are to be lumped in with 1.1/2” which goes up by 100% but does that represent a net increase compared to current levels?)

    Justin Manson asked over 1 year ago

    The changes to irrigation are best understood by looking at the table “Change in total monthly bill from FY23 (no pumping surcharge).”  Depending on usage both 2” and 3” irrigation connections see a reduction in monthly cost (compared to current rates) when limited water is used, and both tip towards an increase in cost as more water is used.  If you’d like to discuss your account specifically, please email us at water@parkcity.org and we can look at the impact for your account.

  • Share Will the changes bring parity to prices for single family homes and irrigation or merely closer to parity - and if so - what is the price for the first gallon? on Facebook Share Will the changes bring parity to prices for single family homes and irrigation or merely closer to parity - and if so - what is the price for the first gallon? on Twitter Share Will the changes bring parity to prices for single family homes and irrigation or merely closer to parity - and if so - what is the price for the first gallon? on Linkedin Email Will the changes bring parity to prices for single family homes and irrigation or merely closer to parity - and if so - what is the price for the first gallon? link

    Will the changes bring parity to prices for single family homes and irrigation or merely closer to parity - and if so - what is the price for the first gallon?

    Justin Manson asked over 1 year ago

    Closer to parity, as parity will vary as individuals make consumption choices and patterns change over time. Exact parity would only be possible retroactively. The price for the first gallon (or 1,000 gallon unit) is shown in Exhibit B to the February 16, 2023 staff report. The staff report is linked on the right hand side of this page.  

Page last updated: 07 Jul 2023, 03:32 PM