Ephraim’s water and sewer systems are running on borrowed time. That was the headline from a March 18 meeting dominated by two independent rate studies showing the city is spending more on its utility systems than it brings in, using reserves to cover the gap, and falling behind on the savings needed to replace aging infrastructure. The council also adopted a wildland-urban interface ordinance required by state law, approved a chip seal project that came in cheaper than last year, greenlit a cat rescue kennel license, and handled two rezone requests. The meeting opened at 7:00 PM at the Ephraim City Council Chambers, 5 South Main.
What Happened
Who Was There
Mayor Larson presided. All five council members were present: Burke, Dane, Nordfeld, Beiel, and Stephen. The meeting opened with a prayer from the community development director, followed by the Pledge of Allegiance.
Public Comment: The Fat Professors and the Scandinavian Festival
Margie Anderson, a former city official (she joked about being on the other side of the dais), addressed the council about the Scandinavian Heritage Festival. She had heard that the Fat Professors, a local band with roughly 30 years of history at the festival, would not be part of this year’s event. Anderson said she was not there to criticize the Scandinavian Festival committee but to offer a different perspective.
Anderson traced the history of Ephraim’s city celebrations, from the old Rambouillet Days through the festival’s grassroots origins. She acknowledged the festival has grown into something the community should be proud of and praised the authentic Scandinavian performers. Her ask was whether there might still be room for local artists alongside the traditional programming. She noted that other communities are already making bids for the Fat Professors to perform at their celebrations.
During council reports later in the meeting, a council member indicated the Scandinavian Festival committee is reconsidering the situation and going back to the drawing board on the Fat Professors.
Drinking Water Rate Study: RCAC Presentation
A representative from the Rural Community Assistance Corporation (RCAC) presented a 73-page drinking water rate study. RCAC is a federally funded nonprofit that conducts rate studies for rural water and sewer systems across the western United States. The work was provided at no cost to Ephraim.
The purpose: determine whether Ephraim’s water rates generate enough revenue to cover operating costs, pay the bills, and save for the future. The answer on all counts was no.
Under current rates (Scenario Zero), Ephraim is not generating enough revenue to cover basic operating expenses. The city is drawing down reserves to keep the system running, which means it is not saving toward the capital replacements it will eventually need. The study projects that replacing aging infrastructure will require approximately $240,000 per year in capital reserve contributions. Currently, that money does not exist in the rate structure.
The study presented three adjustment scenarios. Scenario One is a one-time increase of $17 per month for customers inside city limits and a larger increase for customers outside city limits. That covers the bills and funds reserves for the first three years, with a shortfall in years four and five that the surplus from earlier years offsets over the five-year period. Federal affordability comes in at 1.3% of median household income, well within the 1% to 2.5% range considered affordable by federal standards.
Scenario Two spreads the increase gradually over five years, building to higher monthly bills by year five to make up for the lower revenue in early years. Scenario Three combines an initial increase with 10% annual increases. Both alternatives leave the city with reserve deficits at the five-year mark, though both keep the system solvent for bill-paying purposes.
The break-even point for full system funding: above $47 per month for inside-city customers and above $70.50 for outside-city customers.
The RCAC representative recommended that the council increase rates to better reflect the true cost of operating the system and invest in a more detailed capital improvement plan. The current asset inventory in the study is incomplete. It does not include vehicles or buildings used by the water system, and a more thorough engineering evaluation would produce better predictions about when specific assets will fail and how much replacement will cost.
Sewer Rate Study: RCAC Presentation
A second RCAC representative presented the sewer rate study. Current sewer rates are $33 per month for 10,000 gallons of culinary water use, with $2 per thousand gallons over that threshold. Current affordability sits at 0.56% of median household income.
The sewer study ran six scenarios across three approaches, each with an A version (no use of unallocated reserves) and a B version (drawing on $700,000 in unallocated reserve funds to offset operating costs). The $700,000 came from a prior transaction and has not been earmarked for anything.
Scenario 1A (no change) leads to reserves depleting by 2031. Scenario 1B (no rate change but spending down the $700,000) delays the problem but burns through those reserves in five years just to keep the lights on.
The RCAC representative’s recommendation was Scenario 2A: gradual annual increases rounded to the nearest 25 cents. Year one would bring the base rate from $33 to $38.25 per month. By 2031, the rate would reach $46.25. That structure balances the budget, builds reserves toward a $1.75 million target (up from the current $1.5 million), and keeps affordability below 1% of median household income. The first-year increase works out to roughly $5.25 per month.
The RCAC representative specifically recommended against using the $700,000 in unallocated reserves for routine operating costs. He suggested the money could be better spent on an asset management plan, a GIS system, capital improvements, or other investments that improve the city’s ability to maintain and plan for its infrastructure.
Staff Discussion: The Bigger Picture on Infrastructure
City staff expanded on the rate study findings. The community development director noted that Ephraim’s last rate increase was roughly five years ago. Historically, the city has raised rates either when pursuing loan-funded projects (lenders require rate increases to support loan payments) or when finances get desperate enough to force the issue. Cost increases for materials have been absorbed without rate adjustments. A single stick of 12-inch pipe now costs about $1,000. A 12-inch valve runs $3,500 to $4,000.
The public works director walked the council through specific infrastructure concerns. On 400 East from the activity center over 400 South, an old cast iron waterline with lead joints leaks roughly every 20 feet. Each repair requires four or five employees for a full day of labor, asphalt patching, and a repair clamp, running $5,000 to $7,000 per fix. Transite (asbestos cement) pipe along the perimeter of town also needs replacement. The million-gallon cement water tank needs maintenance.
On the sewer side, the original interior sections of town run on clay or cement pipe. The city can rehab about 1,500 feet of sewer line per year at current funding levels. With approximately two-thirds of the city’s 34 miles of sewer pipe needing replacement or rehabilitation, that pace works out to roughly 71 years to complete the job.
The biological oxygen demand loading at the sewer lagoon was a problem a couple of years ago. Staff reported it is currently under control, but future growth will eventually require expansion of the primary treatment capacity or aeration, depending on how fast the city grows.
RCAC staff made a pointed observation about Ephraim’s position relative to state and federal funding. Federal grants for construction projects have largely dried up. Ephraim is a growing city that may not meet the median household income thresholds that prioritize communities for grants. And at current rate levels, the city’s affordability numbers are so low that funding agencies read them as evidence that the system is not being adequately funded by its ratepayers. Systems being prioritized for assistance are the ones charging enough to demonstrate they are investing in their own infrastructure.
The RCAC representative also noted that recent state legislation will require water and sewer systems to show stronger reserve positions before qualifying for state loans. The changing federal landscape, including references to the Department of Government Efficiency and shifting federal priorities, makes reliance on grants a riskier strategy than it has been in the past.
One bright spot: the city’s current canyon line water replacement project secured 93% grant funding. Staff acknowledged that level of grant support is not common and should not be expected going forward.
Amended UAMPS Power Pooling Agreement
Power Commissioner Cory Daniels presented the amended and restated pooling agreement for Utah Associated Municipal Power Systems (UAMPS). The original pooling agreement dates to 1980 and has not been updated since.
The update is driven by the Extended Day-Ahead Market (EDAM), a regional energy market administered by the California Independent System Operator that launches May 1, 2026. Because UAMPS operates within PacifiCorp’s balancing authority area, all UAMPS member cities are required to participate when PacifiCorp enters the market.
The key change for member cities: resource sufficiency becomes an individual obligation. Under the old pooling agreement, surplus power from any member went into the shared pool. Under the new structure, if Ephraim’s power demand exceeds its allocated resources, the city bears the cost of purchasing the shortfall on the market. Costs directly attributable to a specific member’s resource deficiency get charged to that member, not spread across the pool.
Daniels estimated that Ephraim currently covers about 80% of its peak load capacity through existing resource entitlements. A new natural gas generator coming online will add 2 to 2.2 megawatts, but the city will still be roughly two to three megawatts short at peak demand.
Ephraim’s energy demand is growing at approximately 8% per year. Daniels attributed most of that to new commercial growth (including recent additions like a new motel) rather than existing residents increasing their individual consumption. The city itself is growing at about 2% in population.
The agreement will come back to the council as an action item on April 1 for a vote. It must be approved 30 days before the May 1 effective date. All 47 UAMPS member cities must approve. The city attorney will provide an opinion letter.
Daniels noted that this change should not result in additional costs to residential ratepayers. Ephraim’s kilowatt-hour rate for residential customers is actually projected to decrease slightly this year, though demand charges on commercial accounts will increase. The city completed a separate electric rate restructuring roughly two years ago.
Action: Wildland-Urban Interface Ordinance 26-02 (Approved)
The council adopted Ephraim City Ordinance 26-02, implementing the wildland-urban interface (WUI) building standards and boundary map required by Utah House Bill 48. That bill was signed into law in March 2025 and took effect January 1, 2026. It requires every Utah city to adopt and enforce WUI building standards within their boundaries.
The WUI code is a construction standard designed to reduce wildfire risk. It includes vegetation management requirements around structures and ignition-resistant construction standards for properties in identified wildfire risk areas. The ordinance also bans fireworks within the WUI zone. The fire chief presented the item, noting that failure to adopt the code could leave the city exposed to costs associated with wildfire response that the state Division of Forestry, Fire and State Lands might otherwise cover.
The city attorney reviewed and approved the ordinance. Staff recommended adoption. The council voted unanimously to approve. One council member noted disagreement with certain parts of the ordinance but voted in favor.
Fire Inspection Ordinance (Tabled)
A separate ordinance related to fire inspections for rental properties was tabled due to a legal issue with the language. The ordinance, which would have adjusted inspection requirements for single-family rental units, will return next month after the city attorney addresses the drafting concern. Annual fire inspections for apartments and multi-unit properties will continue unchanged. A property owner in attendance had questions but had not signed up for public comment; staff directed them to follow up after the meeting.
Action: Chip Seal Overlay Project, Resolution 26-05 (Approved)
The council approved Resolution 26-05, awarding the 2026 chip seal overlay project to Christensen Ready Mix. The city received seven bids this year, up from four last year, and prices came in lower than the prior year. Staff attributed the improved pricing to increased competition.
Christensen Ready Mix submitted the lowest bid by a substantial margin. The company is relatively new to chip seal work but completed Manti City’s roads last year. Staff contacted Manti and received a positive report on the quality of their work.
Approved unanimously.
Action: Conditional Use Permit for Kennel License, Jackson Mars (Approved)
Jackson Mars received a conditional use permit for a kennel license to operate a small-scale cat rescue on a large residential property. Mars and their household have four cats of their own and want the ability to take in one or two stray cats at a time for spaying, neutering, vaccination, and either release or rehoming.
Community Development staff noted the property is in an area with a known feral cat colony. Ephraim City code allows up to four household animals without a kennel license. The planning commission approved the request unanimously with conditions: no more than 10 animals on the property at any time, cats only (no dogs, horses, goats, or other large animals), annual license renewal with proof of vaccinations, property must remain clean, outdoor animals must be in the rear yard, and any kennels must be at least 10 feet from the property line behind a solid visual and auditory screen.
A council member raised the point that trap-neuter-release is generally more effective at managing feral cat populations than removing cats from their territory, since removing a cat simply opens the territory for another to move in. Mars confirmed that most of the work would involve trapping, spaying or neutering, and releasing rather than permanent rehoming.
Approved unanimously.
Action: Rezone Request, R2 to R1B (Approved)
The council approved a rezone from R2 to R1B for a property adjacent to a recently approved flex home development. Community Development staff initially opposed the request, wanting to protect the R1B zone from overuse and maintain traditional lot sizes. The applicant returned with a revised plan that won staff support.
The key detail: this is actually a down-zone. The current R2 zoning allows duplexes. The proposed R1B zoning restricts the property to single-family homes with larger lot sizes than the neighboring flex home development. Lots will range from approximately 6,300 square feet to 14,000 to 18,000 square feet, with 60- to 80-foot frontages. No lot may be under 6,000 square feet, and no parcels will be eligible for multifamily dwellings or detached accessory dwelling units.
The plan eliminates a previously platted cul-de-sac and replaces it with a walking path connecting to the neighboring development. A subdivision amendment will return to the council separately.
Planning commission approved unanimously. Staff recommended approval. Council approved unanimously.
Action: General Plan Amendment and Rezone, Cody Perry, R3 to C2 (Approved)
Cody Perry requested a general plan amendment and rezone for a portion of his property at 75 East, 300 North. Part of his property is already zoned C2 (commercial). The remainder is zoned R3 (residential). Perry wants all of his property under the same commercial zoning.
Perry’s longer-term interest is an RV park on the property, which staff said they liked as a concept but considered a poor fit for this location due to access constraints. The property is landlocked behind existing development, with the only current access running through the Parkade Plaza and Dollar Tree parking lot and past an apartment complex. Perry is in discussions with adjacent property owners about obtaining better access from 300 North or Main Street, but nothing is finalized.
Staff noted that even if the rezone is approved, any future RV park would still require a separate conditional use permit and would have to resolve the access question. C2 is a mixed-use zone that permits single-family residential through apartments and commercial uses.
The planning commission split 2-2. Two members supported the rezone. Two, including the chair, voted against it because the general plan does not currently designate that area for commercial use. The general plan amendment was required because the rezone does not match the future land use map.
Perry told the council the land has been in his family for roughly 100 years across multiple parcels. He said that regardless of whether an RV park materializes, he would like the property zoned consistently.
The general plan amendment passed with one opposing vote. The rezone passed with one opposing vote.
Consent Items
The council ratified the warrant register and approved city council minutes. Both passed without discussion.
Council Reports
The Scandinavian Festival update included two items: the new pickleball courts will not be ready in time for the May festival due to painting schedule delays, and the committee is reconsidering the Fat Professors situation raised during public comment.
The Ephraim Youth City Council attended a statewide youth council event in Logan, with 21 to 22 city youth councils represented. The group connected with the Mount Pleasant and Richfield youth councils for planned summer activities. Separately, seven or eight youth attended a day at the Utah Legislature with a council member, sitting on the floor during the session.
The library board met and reviewed policies. A Mosquito Abatement District report is scheduled for the next meeting.
Why It Matters
The rate study presentations are the kind of agenda item that makes eyes glaze over in the room but carries real consequences for every water and sewer customer in Ephraim. The core finding is straightforward: current rates do not cover the cost of running the system. The city has been absorbing material cost increases, deferring maintenance, and drawing on reserves instead of raising rates. That strategy works until it doesn’t, and the RCAC studies show it is running out of road.
The infrastructure numbers deserve attention. A cast iron waterline that leaks every 20 feet and costs $5,000 to $7,000 per repair is not a hypothetical future problem. It is happening now. The 71-year timeline to rehabilitate the sewer system at current funding levels is not a plan. It is a math problem that illustrates why the current approach is unsustainable.
The federal funding context matters. RCAC staff were direct: Ephraim’s low rates actually work against the city when competing for grants and loans because they signal to funding agencies that the community is not investing in its own system. That is a counterintuitive dynamic for a council that has been trying to keep rates affordable. The shifting federal landscape, with fewer construction grants available and new state requirements around reserve levels, makes self-funding more important than it has been in recent memory.
The UAMPS pooling agreement is less immediately visible to residents but changes how Ephraim manages its power costs going forward. The shift from pooled to individual resource sufficiency responsibility means the city has a financial incentive to ensure its own generation capacity keeps pace with demand. The new natural gas generator helps, but with energy demand growing at 8% annually and the city still two to three megawatts short at peak, the gap will continue to need market purchases.
The WUI ordinance adoption is compliance-driven but carries a practical consequence: fireworks are now banned in the designated wildfire risk area, and new construction in the WUI zone must meet ignition-resistant standards. For property owners in those areas, that could affect future building and insurance costs.
What Comes Next
The water and sewer rate studies are on the table. The council received the presentations as study items, not action items. No votes on rate changes were taken. Staff and council will continue discussing which scenario or combination of approaches to pursue. The studies recommend annual rate reviews going forward rather than waiting five years between adjustments.
The amended UAMPS pooling agreement returns as an action item on April 1, 2026. It must be approved at least 30 days before the May 1 EDAM launch. The city attorney’s opinion letter will be part of the approval package.
The fire inspection ordinance will return to the council after the city attorney addresses the drafting issue. Apartment inspections continue on their current annual schedule.
The R2-to-R1B rezone will be followed by a subdivision amendment that comes back to the council separately.
Cody Perry’s rezone is approved, but any future RV park on the property would still require a conditional use permit and a resolution of the access issue.
The next regular Ephraim City Council meeting is Wednesday, April 1, 2026, at 6:00 PM at the Ephraim City Council Chambers, 5 South Main, Ephraim. The meeting is open to the public. Ephraim City Council meetings are live streamed on YouTube (@EphraimCityUtah). Check Utah Public Meeting Notice (pmn.utah.gov) for the agenda when it posts.
Sourcing: This recap is based on an AI-assisted transcript of the March 18, 2026 Ephraim City Council meeting recording, streamed on YouTube (@EphraimCityUtah). Rate study details were cross-referenced with publicly available information on the Rural Community Assistance Corporation (rcac.org), Utah Associated Municipal Power Systems (uamps.com), the California Independent System Operator’s Extended Day-Ahead Market documentation (caiso.com), and Utah House Bill 48 (le.utah.gov). The Ephraim City Council regular meeting schedule and location were verified against the Sanpete Serves meeting calendar and Utah Public Meeting Notice (pmn.utah.gov). Official minutes for the March 18 meeting were not yet available at time of publication. Some names, dollar amounts, and technical details in the AI transcript may contain transcription errors. For corrections, email info@sanpeteserves.com.
