Transportation Utility Fee (TUF)

Maintaining roads, sidewalks, and traffic signals is a significant ongoing expense. Currently, the City pays for some of this work by transferring money from other utility funds.

The proposed fee would gradually eliminate those transfers, allowing utility revenue to stay with the utilities that collect it. It would also provide dedicated funding for maintaining our transportation system as Spanish Fork grows.

Yes. The City already funds road maintenance, including through transfers from utilities like water, power, sewer, garbage, and SFCN.

The Transportation Utility Fee would change how some of that maintenance is funded. Instead of using money collected through those other utilities, the City would collect a separate fee specifically for transportation.

The first phases are intended to replace existing utility transfers rather than simply add another funding source on top of them.

The proposed residential rates are:

Businesses and other non-residential properties would pay different amounts based on estimated traffic generation.

These rates are proposed and have not been approved.

Different properties generate different amounts of traffic. For example, a busy grocery store typically creates more vehicle trips than a single home.

The proposed fee uses estimated traffic generation to distribute transportation maintenance costs between residential and non-residential properties. Businesses would pay different rates based on their estimated traffic impacts.

Not necessarily. Eliminating transfers from other utility funds would not automatically lower current utility rates.

However, it would allow more of the money collected for water, power, and other utilities to remain in those funds, helping reduce the need for future rate increases.

The proposal would eliminate transfers from water and power in FY2027, followed by the remaining utility transfers in FY2028.

All revenue from the Transportation Utility Fee would go into a dedicated transportation fund.

State law requires that money to be used only for transportation-related expenses, such as maintaining, repairing, improving, or replacing transportation facilities, along with reasonable administrative costs.

The money could not be transferred to other City funds or spent on unrelated services.

Yes. The proposal includes phased increases through FY2029 to replace existing utility transfers and address additional maintenance needs.

State law requires a new study, public notice, a public hearing, and City Council approval before increasing the fee.

The City must also review the fee annually to make sure it remains justified. The fee expires after 10 years unless a new ordinance is adopted.

The City Council will hold a public hearing on December 8, 2026, before considering whether to adopt the fee.

Residents will receive information about the public hearing through their November utility bill communications. The City will also publish the required public notice.

If approved, the fee would take effect January 1, 2027, and first appear on utility bills typically received in February.