Transportation Utility Fee

Roads that are maintained in good condition cost less than rebuilding roads. Deferred maintenance results in increased costs.

The South Salt Lake Public Works Capital Improvement Plan includes $55 million in projects that will be required over the next fifteen years to sustain our roadway infrastructure. While the city receives state Class C funds and County Option Highway funds, in 2026 there is a projected $7 million shortfall from meeting the projected cost in the capital improvement plan, and ensure projects are not deferred. 

Cities across the state are facing challenges with revenue sources to pay for roadway projects and keeping up with rising costs. To bridge the gap, many cities have implemented a Transportation Utility Fee, which works to accomplish two things:

1. Create a dedicated transportation fund to collect all transportation revenues and account for expenditures to ensure transparency. 
2. Create a strong nexus between the fee charged and the impact on roadways. 

TUF Background

In the Spring of 2025, South Salt Lake contracted EFG Consulting to:

• Conduct a study to assess the status of city roads and future maintenance needs
• Develop a methodology to allocate future road costs to specific users based on their respective impact on the transportation system.
• Conduct a cost analysis on the necessary projects to meet the safety and condition standards the community expect from our roadway infrastructure.

On June 11, 2025, EFG Consulting presented their results to the City Council, and on July 23, 2025 the City Council voted to create a new Transportation Utility Fee. (The agenda and minutes from the meeting are available in our Agenda Center, and a recording of the City Council meeting is on the city's YouTube channel.)

While the Transportation Utility Fee went into effect in July 2025, it has taken time to set up and implement the new utility fee. Starting February 1, 2026, the city will begin implementation of the TUF and impacted account holders will receive TUF fees for the first time on the utility bills they receive in March.

Funding Road Projects

In their analysis, EFG Consulting found $68.8 million in road infrastructure projects over the next fifteen yeras to ensure the future viability of our roadway infrastructure. Several options were considered on how to fund these projects:

• Do nothing and let our roads continue to deteriorate without the necessary funds to address infrastructure projects.
• Increase property taxes to pay for projects and spread the cost burden among everyone.
• Bond for the projects and put the city into debt for several decades.
• Implement a new Transportation Utility Fee to pay for projects by targeting the highest utilizers.

The City Council opted to implement a TUF as a more equitable approach by charging more to high utilizers, particularly by industrial vehicles that cause the most wear and tear on roads.

TUF Rates

The rate structure is based on property owner user type and adjusted for axle weight. The Estimated Residential Unit (ERU) is based on a single-family home making 9 trips per day with a single-axle vehicle. The ERU is weighted for increased axle load and trips estimated for the other user types, and then multiplied by the monthly rate per 1,000 square feet. City Council approved exemptions for residents, places of worship, and certain non profit organizations.