Introduction

The Council recently approved a resolution allowing the Metropolitan Water District of Salt Lake City & Sandy (the District) to raise its portion of property taxes. The tax increase was considered necessary to keep up critical water infrastructure that treats and delivers water to residents.  

Background

The Salt Lake Valley faced a severe drought in 1935, which led to the creation of the District. Its primary objective was to manage and treat water from different sources within and outside the valley. The District is responsible for crucial projects like the Salt Lake Aqueduct, which requires maintenance after being used for over 70 years. 

The District is a separate taxing entity from Salt Lake City. It is one of the taxing entities that appears as a line on property tax bills for Salt Lake City property owners. 

The Council’s role in the District includes reviewing the budget; however, it does not formally adopt it. The Council also appoints five of the District’s seven-member Board of Trustee 

Approved Tax Increase

The District will increase property taxes from 0.0002 to 0.00035 to pay for infrastructure upgrades and expansion. The District estimates the increase will generate over $8.6 million between Salt Lake City and Sandy. The funding will be used to continue treating and delivering water customers depend on.  

Although the District is a separate entity, each City Council of the member cities, Salt Lake City and Sandy, must approve District property tax increases. 

Now that both City Councils approved the proposal, property taxes on a home valued at $596,000, the average in Salt Lake City, could increase by about $49 per year. 

For additional details and information, please refer to the Project Resources below. 

Why increase property taxes? Can’t the necessary revenue come from water rates? 

The District generates its primary revenue from water sales, property taxes, and other sources. While increasing water rates may seem straightforward, it could impact families relying on a fixed budget.  

Additionally, while higher water rates could encourage water conservation, critical infrastructure upgrades are still needed no matter how much water residents use.