North Utah County to see sewer fees jump

North Utah County to see sewer fees jump
Caleb Warnock - DAILY HERALD
North Utah County residents are looking at a 35 percent spike in sewer fees -- a sign that at least sewer officials believe the recession cannot last forever.

The increase is necessary because Timpanogos Special Service District must proceed with a $107 million expansion despite the economy -- perhaps even because of the economy, said officials.
District officials are shopping three fee-increase scenarios around to city councils in the north end of the valley, each of which would increase rates by a total of 35 percent over two or more years, followed by a small annual increase every year thereafter.

The first scenario would increase rates 15 percent on July 1, and another 20 percent on July 1, 2010. Other scenarios might wait another year before the second increase, or vary the type of bond issue.

"The board is leaning toward the first scenario," said Alpine Councilman Tracy Wallace, reporting the fee proposal to Alpine. Wallace represents that city on the sewer district board.

Costs have gone up but fees have not been regularly increased, Wallace said of the decision to add small automatic annual raises after the larger fee jumps.

District Manager Jon Adams said the sewer plant must be expanded to meet the needs of future growth, even if growth has flat-lined now.

"You cannot guarantee me that we are not going to expand" the local population, Adams said. "If you are trying to tell me no one is going to have a baby, you are up in the night."

Built to treat up to 18 million gallons of human waste a day, the plant processed 15 million gallons a day in 2008, Adams said. That number is just too close to full capacity for comfort.

Sewer board members will choose one of the three scenarios at their March 19 meeting, and then a public hearing on the 35 percent increase will be held, likely in April.

The increase would allow the district to float a bond for $55 million. That combined with another $29 million the district has already borrowed, impact fees that have already been paid and will be paid, and monthly user fees will make up the cost of the $107 million project.

Indeed, economic recession may mean more people moving to Utah not to buy new homes but to move into their parents' basements, Adams said. And there are hundreds, if not more, of homes that sit vacant or approved for construction that have already paid fees for sewer, and the district must be ready at any time to give them service.

"We have an unprecedented number of homes where the fees are already paid for but they are vacant," he said.

All of this adds up to a need to expand now, despite the economy, but the rough economy may actually help as construction bid prices are dropping sometimes by as much as a quarter or a third of their original cost, he said. The sewer district hopes to take advantage of those savings.

"I don't see where we can wait," he said.

In addition, it now appears that the state will require sewer treatment plants to begin removing phosphorus from treated sewage before it is dumped into Utah Lake, and perhaps nitrogen too. Both of these mean Timpanogos will need to redesign its facilities. And odor control is part of the $107 million plan, too.