Provo targets aging pipes and new plant staffing with 6% water rate hike in FY27 budget

Provo targets aging pipes and new plant staffing with 6% water rate hike in FY27 budgetThe Utah city's $49 million combined water and wastewater budgets will fund critical infrastructure repairs, compliance with the EPA Lead and Copper Rule, and the imminent launch of a new drinking water facility.

The FY27 budget includes $21 million in revenue for the Water Fund and $28 million for the Wastewater Fund.

A previously approved 6% water rate increase will take effect to fund the replacement of corroding, leaking pipes.

The city is adding five new positions to operate a newly constructed drinking water plant slated for completion by January.

Provo's Water Resources division is operating with just seven full-time and two part-time staff, half of the 14 employees recommended by the EPA.

The city is introducing two new fees for waste haulers to recover costs associated with after-hours septic drop-offs and excessive debris.

Provo City's Water Resources Division is preparing for significant operational expansions in its fiscal year 2027 budget, driven by the impending completion of a new drinking water plant and an urgent need to replace deteriorating underground infrastructure. During a March 24 municipal council work meeting, Public Works Administration Division Director Jimmy McKnight presented the proposed FY27 budgets, which project $21 million in revenue for the Water Fund and $28 million for the Wastewater Fund. A central component of the water budget is a 6% rate increase, which the council previously selected in June of the prior year. The rate hike will be applied across all rate components to achieve a 6% overall revenue increase. When questioned by Councilor Whitlock about the necessity of the hike and its impact on consumer demand, McKnight emphasized the critical state of the city's distribution system. "We have pipe that is corroding underground and leaking, and our crews are out every weekend repairing main lines," McKnight said, noting that the increased revenue is the minimum required to maintain the system's current water quality. The city is also preparing to bring a new drinking water plant online, with construction anticipated to finish in December or January. To support the launch, the division is requesting funding for five new positions: two employees to be hired in July to shadow equipment installers and learn the system, and three additional staff in January when the plant becomes fully operational. On the wastewater side, the city reports that its new sewer treatment plant, which received a budget increase in FY26, is currently operating within its allocated funding as staff monitor seasonal variations. However, McKnight requested one additional full-time wastewater collections operator to improve the maintenance of sewer pipes and manholes. The request comes amid broader concerns about personnel shortages. A councilor noted that the EPA recently recommended 14 staff members for Provo's water resources, yet the city currently operates with only seven full-time and two part-time employees. McKnight acknowledged that the city is "borrowing time" by relying on new technologies and internal efficiencies to manage the expanding pipeline network. In addition to the rate hikes, the FY27 wastewater budget will introduce two new fees targeting waste haulers who drop off septic sewage at the treatment plant, aiming to recover costs associated with after-hours deliveries and excessive debris. Meanwhile, the city's water distribution overtime budget will remain elevated, though McKnight noted that a major spike in FY25 overtime was specifically tied to compliance with the EPA's Lead and Copper Rule, which required crews to physically verify service line materials throughout the community.