Salt Lake City Council Approves Significant Utility Impact Fee Increases for Developers
The Salt Lake City Council has unanimously approved substantial increases to utility impact fees for water, sewer, and stormwater services. These fees, which are one-time charges for developers obtaining building permits for new construction, have not been raised since 1999. The new system will see these charges triple or more, phased in over the next two years. For instance, the total impact fees for a single-family home on a typical quarter-acre lot will jump from $2,790 to $11,870. Similarly, a commercial development on 5 acres with a 3-inch meter pipe will see fees increase from $43,158 to $165,105. The city's Department of Public Utilities attributes these increases to inflation, rising construction costs, and the necessity to fund major upgrades to the city's aging water and sewer infrastructure, including an $850 million overhaul of the 55-year-old water reclamation plant in Rose Park. Council Chair Alejandro Puy emphasized that 'growth has to pay for growth,' aiming to shift the financial burden fr...