Ashley Valley Impact Fee Analysis – Water Summary
Under Utah’s Impact Fees Act, Title 11, Chapter 36A, Utah Code Annotated, the Ashley Valley Water and Sewer Improvement District (the “District”) is authorized to establish and impose impact fees for its public facilities in order to mitigate the impact of new development on public infrastructure. Growth in the form of new homes and businesses requires expansion or enlargement of public facilities to maintain the same level and quality of public services for members of the community. Impact fees help fund that expansion. Impact fees are collected from new development when an applicant applies for a building permit. “Public facilities” include such things as water rights and water supply, treatment, storage, and distribution facilities. Utah law requires that prior to imposing an impact fee the District must prepare or have prepared an impact fee analysis. An impact fee analysis provides the reasoning for the impact fee and shows how the impact fee is determined.
The District has prepared an impact fee analysis for water, attached hereto, that meets the requirements of Utah law. The analysis shows that because of anticipated new development within the District’s boundaries, the District will not be able to maintain its same level and quality of service for water over the next 5 years without expanding or enlarging its water facilities. The District needs to construct a new water treatment plant and needs to acquire additional water rights because of anticipated new development.
In order to cover new development’s fair share of the costs associated with new development’s impact on the District’s water system, new development should be required to pay a reasonable water impact fee at the time it applies for a building permit. The attached analysis shows that the District’s water impact fee should be divided into two parts, a base fee and a water rights fee. The highest justified base fee the District can charge new development is $1,327 per equivalent residential connection (“ERC”). The highest justified water rights fee the District can charge new development is $3,185 per ERC. All new development should be charged a base fee, but not all new development should necessarily be charged a water rights fee. In some situations, a developer may elect to dedicate sufficient water rights to the District in lieu of paying a water rights fee.
Water impact fees collected by the District will be used on water facilities that have a life expectancy of 10 or more years, are owned or operated by or on behalf of the District, and serve the community at large. More specifically, water impact fees will be used for property or water rights, water supply, treatment facilities, storage facilities, distribution facilities, materials and construction. Water impact fees that are collected will not be used for maintenance of existing facilities or for employee salaries.
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