Parowan — The Parowan City Council heard an update Oct. 9 on a water-rate study and a water-board recommendation intended to support upcoming capital projects and ongoing system reinvestment.

What the water board recommended
City staff and the engineering consultant presented four alternatives for rate design and the water board recommended Alternative 1: retain the current tiered structure but adjust base rates to ensure stable revenue. Staff said the recommended structure keeps a base allowance of 5,000 gallons and uses tiered pricing above that base to promote conservation and to target higher-use customers.

Why it matters
Staff said the adjustments are needed to reliably finance planned capital work including a spring water-treatment plant and distribution improvements required for fire flow and system resilience. The state’s guidance and recent trainings were cited — Utah law and best practice encourage tiered rates that reserve revenue from top consumption tiers to fund conservation or water-right purchases; staff proposed using top-tier revenue toward water-right acquisition and system upgrades.

Usage patterns and design choices
Staff noted that Parowan’s customer usage distribution is heavily weighted toward the base and first tier, meaning most residential customers would see changes concentrated in the base rate rather than high-volume surcharges. The engineering firm will refine the numbers so that the new structure meets debt-service coverage and reinvestment goals without large, sudden increases for most customers.

Next steps
Engineers will return with a refined rate model and specific rate numbers for the council to consider. Staff emphasized the need to align rate changes with planned bond or financing timelines for the spring-treatment-plant project.

Speakers
- Staff member Dan — summarized board discussions and implementation context
- Water Board (body) — recommended Alternative 1 to retain tiering and adjust base rates

Clarifying notes
- Base allowance referenced in discussion: 5,000 gallons as part of the proposed base rate.
- Staff noted the top tier revenue should be directed toward water-right acquisition and conservation-oriented investments; state guidance referenced during the meeting prohibits using impact fees for operations and maintenance.

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["water rates","water board","rate design","Parowan"]