LEHI -- Residents feeling the effects of a down economy may feel more of a pinch if Lehi City officials OK higher utility fees for the new fiscal year.

Council members are considering a $72 annual increase in water, sewer and garbage rates in the municipal 2010 fiscal budget for each of the city's utility customers. The change would take effect July 1 if it receives final approval.

"The increases are needed to have operating revenues meet operating costs," said finance director Dave Sanderson during an online interview. "If they are not increased, the operating expenses will be more than the operating revenues."

He said staff have been able to decrease some of the city's operating costs. They have shrunk the general budget by several million since 2007, but will need the utility increase in order to break even with operating expenses.

The proposed changes were unanimously approved in the preliminary draft of the $20.6 million budget at a public hearing on May 12 during the City Council meeting. Another public hearing on the final budget is scheduled for June 9 at City Hall, 153 N. 100 East. Residents can request to look over the proposed budget beforehand at the city offices.

Lehi City Administrator Jamie Davidson said during the meeting that most of the utility fees had not been adjusted for several years. Fees for water and sewer were raised in 1995, a storm drain rate was introduced in 1999 but hasn't been changed since its inception, and the garbage charges were increased in March 2008.

The proposal includes a $1 increase in the secondary irrigation fee, 50 cents for the garbage pickup, $1.50 raise in the sewer rate and $3 for the water fee, for a total of $6. Davidson maintained that based on the overall fees, the city of Lehi had one of the lowest utility rates in north Utah County.

He also told the council that city policy had been changed to review utility rates annually, deviating from revisiting the numbers every fifth year.

"The five-year review was one of the components, and the other major component is the present economy," said Sanderson of the new policy. "Based on the economy, we will review the fees on a yearly basis with the City Council."

• Cathy Allred can be reached at (801) 376-6422 or at heraldextra@digis.net.