It's a simple case of supply and demand. The Salt Lake Water Conservancy District is demanding more money and South Jordan needs the water supply.
The net result is a 33 percent increase in the city's base water utility rate. South Jordan homeowners will feel the impact on their November water billings.City Administrator Richard Warne told the City Council Tuesday night that South Jordan has run out of money for capital improvements to the city water system, due largely to the water conservancy district's penchant for increasing the price of water. The last increase in the base rate for city residents was in 1983. Since then, the city has seen the rate it pays go up every February for the past five years and officials expect to see another increase this February.
"There is no cushion left, we just don't have a choice anymore," Warne said.
The city is dependent on the conservancy district for its water supply.
So, South Jordan residents will begin paying $16 for the first 8,000 gallons of culinary water, up from the current $12 rate. Also, the coverage charge will go from 55 cents per thousand gallons to 75 cents. Simply put, 10,000 gallons will go from $13.10 to $17.50.
The rate increase is expected to generate an additional $132,480 per year.
Warne said the city has been able to absorb conservancy district increases over the past five years through improved efficiency.
"We pride ourselves that we have managed to avoid a building moratorium despite the pressure," said Warne. "This is due largely to the fact that we have had the infrastructure in place to support that growth."