The Salt Lake City Department of Public Utilities is proposing updates to utility impact fees. In a notice posted to the city's website, officials stated the proposal follows a period where current fees have remained largely unchanged for more than 25 years despite significant growth and increased construction costs.
Under the Utah Impact Fees Act, impact fees are one-time charges used to fund public facilities required to serve new development. These fees help pay for water, sewer, and stormwater infrastructure needed for growth, following the principle that growth should pay for growth so existing customers do not bear the cost of expanding utility capacity. Fees are collected when a utility permit is issued or when a building permit is issued for a property connecting to the utility system.
Proposed updates include significant increases for water, sewer, and stormwater fees. For water, proposed fees are based on meter size; for example, the proposed fee for a 3/4-inch meter is $5,577, compared to the existing $1,871. For stormwater, the proposed fee is $1,963 per 1/4 acre, up from the existing $374 per 1/4 acre.
Sewer impact fee proposals include two options. Option 1 is based on the size of the customer's water meter. Option 2 applies a charge per dwelling unit for residential users, while nonresidential users would be charged based on water meter size. For residential users under Option 2, the fee for a single family home is proposed at $4,300, while duplexes, triplexes, and multifamily units would be $3,225 per dwelling unit.
The proposed Impact Fee Facilities Plan will go before the Salt Lake City Council for consideration. The Council is expected to hold two hearings to receive public comment. If approved, the updated impact fees will take effect 90 days after the approval date and will be posted in the City's Consolidated Fee Schedule.
