The topic surrounding a proposal that would adjust how Provo residents pay for water use while increasing fees has seemingly become contentious in recent months.

The Provo City Council was expected to vote on an ordinance during its meeting Tuesday that would raise rates by 5% with additional increases that could be voted on each year. The council has also been considering a billing shift to a tiered rate structure, based on usage and the property’s meter size.

This would replace the city’s current seasonal rate structure.

The City Council has been exploring the matter for nearly two years and said the increase was needed to address aging infrastructure and generate revenue for maintenance and operational needs.

Provo officials said roughly $80 million in funding is needed for capital improvement projects over the next decade to accommodate future growth and maintain service to its customers.

A previous proposal earlier this year called for a 12% increase to water rates aligned with the tiered structure. The City Council voted to table the matter at its Feb. 13 meeting after citizens and council members raised concerns about the looming increase. They then worked with staff to reevaluate their approach to raise fees and revenue.

“We did take some feedback from the council to do a little bit of shift from the front end, and we wanted to accomplish the same level of investment in the system over the next 10 years, but maybe not have it hit so hard right at the beginning,” said Keith Larson of Bowen Collins & Associates, an engineering firm that consulted with Provo on the recommended rates.

But the outcome of Tuesday night’s meeting also did not conclude with a vote either way on the proposal, as the City Council narrowly passed a motion to once again continue the discussion at a future meeting.

Despite changes to the original proposal, the response to the plan was split between council members and residents.

Larson also noted the proposed changes to Provo’s water billing system would align with a new emerging state law.

House Bill 274 allows cities to set a tiered water rate system for the sake of conservation.

The bill, sponsored by Rep. Casey Snider, R-Paradise, is set to become law in July.

Council members acknowledged the need to address infrastructure and raise revenue to combat inflation costs for repairs but debated the need for tiered water rates to distribute costs fairly and ensure sustainable water usage.

They also raised concerns about the impact on large lot owners.

Mayor Michelle Kaufusi offered a statement during the meeting also recognizing why the increase is needed but seemingly came to the defense of citizens, who she said told her they simply can’t bear the financial implications of higher water fees.

“I strongly support a thoughtful, transparent process grounded in citizen engagement to meet our infrastructure and conservation goals, but we cannot ignore the real economic uncertainty many of our residents are facing,” Kaufusi said before the City Council.

She requested time and the opportunity to explore other options to generate the funding and to bring it before the City Council early next month.

“I respectfully ask the City Council to allow me the opportunity to fully vet some alternatives and to present to you a proposed water rate and tier approach in two weeks as part of my budget presentation,” Kaufusi stated.

During the public comment period, opinions were divided on the issue.

John Bennion of Conserve Utah Valley said he supports the proposed tiered water rate system, citing the need for increased expenditure on water main replacements.

“CUV supports this change because it will promote conservation of water and provide funding for replacing water infrastructure without increased fees appreciably for most water issues,” Bennion said before the council members.

Provo resident Lisa Rivera said she understands the need to increase water rates but felt that the proposed structure and fees would have a significant impact on those who are already dealing with financial challenges. She also feels it would discourage horticulture.

“I think it discourages gardening,” she said. “I think it penalizes families that have really large lots, that could be just a lot with some reasonable landscaping on it.”

Councilwoman Rachel Whipple spoke firmly in support of the increase, though she noted being more comfortable with the previously presented proposal.

Her comments grew intense as she reiterated the amount of work and time that has gone into researching and crafting each rate proposal.

“We’ve already had nine public meetings about this,” Whipple stated.

She continued to cite the need for responsible infrastructure replacement.

“If we do not have this regular and aggressive replacement of those old pipes, they will fail, and when they fail, the emergency response to repair those costs far more than a planned replacement,” Whipple said.

Councilman Travis Hoban, who has been a vocal opponent of both proposed rate increases, argued the fees would not be realistic for many residents.

“I think people are tired of us trying to say that this is a 5% increase, when really, for me, it’s a 38% increase,” Hoban said. “There are people being significantly impacted by this. It’s going to crush some people’s budgets, simply because they have larger lots.”

He went on to call for further understanding of the issue and implications for people with varying property sizes.

“I can’t understand how we would approve this tonight and feel like we did the right thing,” Hoban added.

Ultimately, a motion to pause the decision was passed 4-3, with council members George Handley, Becky Bogdin and Whipple dissenting.

“I don’t want to kick the can down the road, (and) that’s what I’m being asked to do,” Whipple said.

Kaufusi is expected to present her proposed Provo city budget for fiscal year 2026 to the City Council on May 6, though it’s uncertain if action on any revised water fee structure plans will be taken that evening.