Annual utility rate analyses help keep City services sustainable

In a presentation to the Eagle Mountain City Council on Tuesday night, City Finance Analyst Terrence Dela Peña explained how the City is taking a proactive, data-driven approach to ensure its utility rates remain sustainable and equitable for residents.

“Our focus is on long-term fiscal responsibility,” said Dela Peña. “We want to make sure the rates we charge are sufficient to cover the full cost of operations, not just today, but as our community continues to grow.”

The City routinely evaluates its utility rate structures, including water, sewer and stormwater to ensure that the rates align with the cost of delivering those services.

The most recent review presented this week confirmed that the City’s current rate plan is functioning as intended, with incremental adjustments helping to avoid larger, disruptive increases down the road.

“We’re not interested in rate spikes,” Dela Peña said. “Our strategy is to make small, predictable changes each year so that we keep pace with inflation, infrastructure costs, and system needs. This way, we avoid falling behind.”

Dela Peña emphasized that utility rates are not arbitrary. They are based on specific operational and capital needs. Each rate is reviewed in the context of the City’s overall budget, expected growth, system demands and future capital projects.

“What people sometimes don’t see is how much it actually costs to operate and maintain these systems,” he said. “When you flush a toilet or turn on a faucet, that sets off a complex chain of systems such as pumps, treatment, staffing, infrastructure wear and tear that all need to be funded. Our job is to ensure those costs are covered in a fair and transparent way.”

Eagle Mountain faces increasing demand on its utility systems. While population growth can bring additional revenue through connection fees and increased users, it also brings new infrastructure needs and operational pressure.

“Our goal is to grow responsibly,” Dela Peña said. “The City is adding new infrastructure every year and we have to make sure we can operate and maintain all of it without falling behind.”

He noted that while impact fees paid by developers help build initial infrastructure, they do not cover ongoing costs. That’s where utility rates come in.

The City Council presentation was part of the City’s annual rate analysis process, which Dela Peña said is a regular practice.

“Every year, we look at where we are and where we’re headed,” Dela Peña said. We bring our findings to the Council and the public, and we adjust as needed.”

Looking ahead, the City will continue to monitor inflation, system demand and regulatory changes to ensure its rates remain aligned with costs.