EXPLANATION OF THE TRANSPORTATION UTILITY FEE
Download the Road Funding FAQ
Over three years ago, Pleasant Grove City Council commissioned an analysis of the yearly cost to get Pleasant Grove City roads up to an acceptable standard. The City hired JUB Engineers to do the analysis and they presented their findings to the City Council in January 2015. The results of the study were that it would take $3.8M per year for the next 20 years to get all city roads to an acceptable standard.
The road funding at the time was approximately $1.2M made up of gasoline taxes and money transferred from the general fund for road maintenance. A request was made by the City Council to staff to consider a Transportation Utility Fee (TUF).
A study was done by Lewis Young Robertson and Burningham (LYRB) to determine the breakdown of road usage between residential use and the different types of business uses. This breakdown also showed how much residents and businesses would be charged in order to generate enough revenue to help solve the road maintenance issues. This study was presented to the City Council in January 2016.
In May 2016, Pleasant Grove City mailed a flyer to each resident and business notifying them of a public hearing on a potential Transportation Utility Fee. The public hearing was held on June 7, 2016 in which 18 residents shared their feedback. At the time, the City Council requested time to further study the issue before implementing the fee.
By 2017 the City Council had added another $230,000 of general fund monies allocated to road maintenance and the Utah State Legislature increased the Gas Tax to add another $180,000 of Class C road monies to the City. The gap to reach the $3.8M annual funding for road maintenance was down to $2.2M.
In March 2017, a Citizen Initiative was filed by a group of citizens to require the City to fund the $2.2M gap out of the general fund. In order to take $2.2M of general fund money to solely fund roads, the funding would have to come from other services in the general fund. The likely sources of this funding would come from parks, library, Senior Citizen services, and the swimming pool.
In November 2017 68.8% of voters voted “No” to the initiative and to that method of funding road maintenance. The election results showed the City Council that the residents did not want to fund roads by reducing or eliminating other general fund services.
In 2018, the City Council further discussed the implementation of a Transportation Utility Fee in order to make significant progress on road maintenance and repair. In February of 2018 the City Council, with help from the Pleasant Grove Chamber of Commerce, hosted three meetings with the business community to show different options for the Transportation Utility Fee. Approximately 30 businesses attended these meetings.
The City Council also held an open house on February 21, 2018 to present options that the City was considering for the Transportation Utility Fee. All residents and businesses received an invitation to the open house. Approximately 100 people attended the open house and about 50 returned comment cards with feedback for the City Council’s consideration.
On March 27, 2018 the City Council held a public hearing on a proposed Transportation Utility Fee. Six people spoke regarding the proposed fee.
On April 10, 2018 the City Council implemented the Transportation Utility Fee. On July 17, 2018 the City Council made some minor modifications. The Transportation Utility Fee is to be implemented on the August 1, 2018 billing cycle:
Road Fee Per Month-Residential $ 8.45
Tier 1 Business Road Fee Per Month $ 41.27
Tier 2 Business Road Fee Per Month* $ 236.05
*Tier 2 businesses include: gas station/convenience stores; restaurants with drive thru service; users with more than 250 parking stalls (churches will be considered Tier 1 users because their higher intensity of use is limited to primarily a single day per week). Tier 1 businesses include all other commercial users who do not qualify as Tier 2.
All businesses also received a 45% rate exemption in the fee calculations similar to the exemption that residential owners receive on their property tax for home ownership.
For more information, you can visit the Roads FAQ on our website: plgrove.org. If you have any questions regarding the Transportation Utility Fee you can email City Administrator, Scott Darrington as .