Lehi City budget forecast: Utility rates set to increase again in 2025, 2026

Megan Wallgren | Lehi Free Press

Lehi’s Mayor and City Council members reviewed the 2026 Fiscal Year Budget at their Feb. 4 administrative retreat. The budget reflects adjustments based on prior expenditures and anticipated needs for the future.

Public Safety was the City’s top budget item, taking 44% of the general fund. Parks and Recreation was the second most significant item, making up 23% of expenditures.

New expenditures included increased staffing in Parks and Recreation and the Lehi Police Departments and fleet replacement needs. Pay equity adjustments were proposed to keep Lehi’s public safety employees’ pay competitive with that of surrounding cities. New park expenditures included funding for Family Park, Holbrook Farms Park, and Cold Springs Ranch Park.

The City has planned increases in utility rates for 2025 and 2026 to accommodate rising costs and infrastructure improvements. 

The base rate from pressurized irrigation is increasing from $5.90 in 2024 to $6.20 in 2025, a 5% increase. The base rate is anticipated to move to $6.51 in 2026. The culinary water rate will stay the same.

Sewer rates will increase the most. The base rate will move from the 2024 rate of $20.60 to $25.75 in 2025 and up to $29.61 in 2026, a 44% increase from 2024 to 2026. 

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Garbage rates are increasing from $14.43 in 2024 to $14.94 in 2025 and are projected to reach $15.94 in 2026, a ten percent increase over two years.

The storm drain fee is moving from $5.50 in 2024 to $5.75 in 2025 and will reach $6.00 in 2026.

The City had a general fund revenue of $71.1 million in 2024, and expenditure totaled $65.3 million. Revenues included $47.5 million in tax revenue and 23.7 million in other revenue.

Most of the City’s tax revenue, $23.5 million, came from sales tax. Lehi collected $14.4 million in property taxes, $1.9 million in PARC taxes, and $7.7 million designated as “other taxes.”