"The purpose is a return on investment to the general fund so that we don't have to have as big of a property tax levy as we could otherwise need." Murray budget director Brenda Moore said that to the city council in June 2025, as the Murray Journal reported. She was describing the money Murray moves out of its water, wastewater and power departments each year to help pay for police, fire, streets and the rest of the general fund.
Buyers comparing cities across the Salt Lake Valley tend to compare property tax lines, because the tax line is printed on every listing. In Murray that number covers only part of what the city collects. Another part arrives on the monthly utility bill, and whether a given house contributes to it depends on which utility serves the address. City limits don't settle that.
The Transfer Is Bigger Than the Tax Increase
Murray adopted a property tax increase this year. At the Truth in Taxation hearing on August 11, 2026, the council voted 5–0 to adopt the tax levy and the final FY2026–27 budget. The city's notice of proposed tax increase put the new revenue at $714,297 a year, a 5.66% increase in budgeted property tax revenue excluding new growth. For a $614,000 residence, the city portion of the tax went from $462.65 to $488.99, or $26.34 more per year. The money pays for a police officer, police and firefighter salary-market adjustments, and overtime meant to cut the number of shifts running at minimum staffing.
That increase was a smaller version of the original plan. In June 2026 the Murray Journal reported that Mayor Brett Hales's tentative budget had proposed a 9.8% increase worth about $1.22 million. The budget document blamed flat sales tax projections, a projected 16% drop in intergovernmental revenue, and a 14.7% jump in medical insurance costs.
Compare that with the enterprise fund transfers in the city's FY2026–27 hearing notice, which covers July 1, 2026 through June 30, 2027:
| Source of money for the general fund, FY2026–27 | Amount |
|---|---|
| Power Fund transfer | $3,819,600 |
| Water Fund transfer | $865,920 |
| Wastewater Fund transfer | $770,560 |
| Total utility transfers | $5,456,080 |
| New revenue from the 2026 property tax increase | $714,297 |
The power transfer alone is more than five times what the tax increase raises. According to the notice, each transfer equals 8% of that fund's revenue, "which percentage is unchanged from prior years." The previous year's transfers came to $5.24 million and made up about 8% of general fund revenue. In June 2025, Moore told the council that a property tax increase of 39.8% would be needed to replace that money through the levy.
So a buyer who compares Murray's city tax with a neighboring city's tax is comparing one part of Murray's revenue with something else. The rest comes through the meters.
What a Murray City Power Customer Pays Today
Murray owns its electric utility, and most cities around it are served by Rocky Mountain Power. The residential schedule in the Murray City municipal code lists:
- A $10 monthly customer charge
- 11.64¢ per kWh for the first 600 kWh in peak season, April through September
- 12.67¢ per kWh above 600 kWh in peak season
- 11.64¢ per kWh in off-peak season, October through March
- A separate Schedule 30 supply-cost adjustment added to bills
Those rates were the last step of a phased schedule the city adopted in 2023. The step took effect August 1, 2025. Compared with the prior year's column, the customer charge rose from $8 to $10, and the main energy rate rose from 10.48¢ to 11.64¢, about 11%. The 2023 schedule came after a cost-of-service study, which the Murray Journal reported had found a $10 million shortfall tied to spikes in energy costs.
Rocky Mountain Power's Utah price summary, in effect as of September 25, 2026, lists a $12 monthly customer charge for single-family service. Its summer rates, June through September, are 9.8332¢ per kWh for the first 400 kWh and 12.5263¢ above that. Its winter rates, October through May, are 8.7020¢ and 11.0852¢. Rocky Mountain Power adds several percentage adjustments on top of those base rates, including a 7.63% energy balancing account charge and a 3.84% demand-side management charge, each shown as a separate line on the bill.
Both utilities add adjustments to their base rates, so comparing the base tables alone doesn't show which bill is lower for a given home. The structure is what matters here. In a house on Murray City Power, part of every electric payment ends up in the city's general fund at the 8% rate set in the transfer notice.
Rocky Mountain Power's rates also just shifted. On July 31, 2026, the Utah Public Service Commission approved a settlement that gives the company an additional $93 million in annual revenue requirement, effective July 1, 2026. The same order bars Rocky Mountain Power from filing a Utah general rate case with new rates effective before January 1, 2029.
October 20: Murray Power's Rates Go Back on the Agenda
Murray's side of the comparison is about to be revisited. A city notice dated September 16, 2026 sets a public hearing for 6:30 p.m. on October 20, 2026, in the Council Chambers at Murray City Hall, 10 East 4800 South. The hearing covers "proposed power rate increases and changes to applicable electrical service schedules." The ordinance would amend sections 15.20.145, 15.20.150 and 15.20.170 through 15.20.250 of the municipal code.
The notice says the proposed rates can be reviewed on the city website starting October 9, at the Finance and Administration Office in Suite 160, and at the City Recorder's office in Suite 155. The notice doesn't give the new rates, percentages or effective dates, and we haven't yet reviewed the proposal. That document has the figures a buyer would need for a household budget.
The transfer policy adds one point. The notice sets each transfer at 8% of the fund's revenue. If a rate increase raises Power Fund revenue, the 8% applies to the larger total, so the general fund's share grows along with the bill.
Water has already been through this. The FY2027 budget document quoted by the Murray Journal describes a rate schedule with a 17% increase on April 1, 2025, followed by another 17% on April 1, 2026. The city tied those increases to $11.7 million in water projects planned over the following four years.
The Part of Murray That Pays the Tax but Not the Transfer
This is where buyers run into it during a transaction. Murray's city limits and Murray's utility territory aren't the same.
On December 3, 2024, the city council adopted Ordinance 24-32, which annexed the area between roughly Van Winkle Expressway and 900 East, from 4800 South to the city boundary at 4840–4890 South. The annexation took effect July 1, 2025. Since then, residents there get Murray police, fire, streets and stormwater service and are billed Murray's quarterly stormwater fee. The city's welcome letter says the fee also covers street sweeping and snow removal.
The same letter lists the services that did not change providers:
- Electricity: Rocky Mountain Power
- Garbage collection: Wasatch Front Waste
- Wastewater: Cottonwood Improvement District
- Water: Salt Lake City
A home in that area pays Murray's city property tax, including this year's 5.66% increase. Its electric, water and sewer bills go to providers outside the three Murray funds behind the $5,456,080 transfer. A home a few blocks west, inside the older city boundary and served by Murray City Power, pays both the tax and the utility bills that feed the transfer. Both are Murray addresses, and each pays toward city services differently.
Rocky Mountain Power's service area page directs customers to confirm service by location, and we found no public parcel-level map that splits Murray City Power from Rocky Mountain Power across the city. The provider has to be confirmed address by address, and the listing sheet won't list it.
The Same Logic Applies to Water
Salt Lake City supplies water to the annexed area. According to the FY2027 budget document, Murray's own water system doesn't buy its supply, so its fixed system costs stay the same however much water customers use. The two back-to-back 17% increases apply to Murray Water customers, and the Water Fund's $865,920 transfer is the largest share of fund expenditures of the three, at 13.96%.
For a buyer comparing two Murray homes, the property tax figures may look nearly identical while the monthly utility costs come from different rate schedules set by different public bodies. Murray's city council sets Murray City Power and Murray Water rates. The Public Service Commission regulates Rocky Mountain Power. Salt Lake City and Cottonwood Improvement District each set their own rates.
FAQ
Is the utility transfer a tax? The city describes it as a transfer from enterprise funds to "supplement City services." It's set at 8% of each fund's revenue and is approved through a public hearing each budget year. It doesn't appear as a line on the property tax bill.
Where can I see the proposed Murray Power rates? The September 16, 2026 notice says the proposal is posted on murray.utah.gov as of October 9 and can be reviewed in person at Murray City Hall before the October 20 hearing.
Does a Murray mailing address mean Murray City Power? No. The area annexed in 2025 has Rocky Mountain Power for electricity, Salt Lake City for water and Cottonwood Improvement District for wastewater. The provider needs to be confirmed for each specific address.
Which utilities serve an address shapes the monthly cost of owning a Murray home as much as the tax rate does, and it rarely shows up before an offer is written. Nikole Andersen Real Estate confirms providers address by address and keeps track of rate decisions like the one before the council on October 20. Contact Nikole for a complimentary market consultation.
This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.
