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Council creates reimbursement area, sets $1,000-per-ERU fee for 3900 West waterline, effective next day
Summary
To unblock several stalled subdivisions, the Cedar City Council on March 26 approved a developer reimbursement area covering the 3900 West waterline area and set a per-unit assessment of $1,000 per ERU with a 15-year reimbursement period; the rule was made effective immediately to allow development activity to proceed.
The Cedar City Council voted March 26 to create a waterline reimbursement area for the 3900 West/Magnolia Fields service area and to assess $1,000 per equivalent residential unit (ERU) for properties in that area, payable under a reimbursement schedule. Council set the reimbursement period at 15 years and made the measure effective immediately to allow putative developments that had been held up by the city’s water-connection requirement to move forward.
Developers and city staff told the council the item was blocking platting and building activity for multiple subdivisions, including Phase 2 and Phase 3 of Magnolia Fields and other proposed projects in the area. Tim Watson of Watson Engineering and City Engineer Jonathan Stathis presented route alternatives and cost estimates. Council members discussed three broad alignment options — a south route roughly toward Highway 56, a Port 15 route that could tie closer to the Conservancy District, and a Chelsea/Chelsea-to-3000 North option — and heard that cost, easement needs and pressure reduction options varied by route.
Council members said the city would still need to decide which physical connection to build and how much of the expense it would fund directly, but they concluded the developments should not be held up while the council chooses the preferred alignment. The $1,000-per-ERU fee is intended to reimburse the portion of the waterline cost that directly benefits those new lots; council members asked staff to draft an ordinance formalizing the reimbursement area, the ERU calculation method (using the city’s established ERU rules), the payment point (subdivision final plat or permit, as appropriate), and the final duration and cap language.
Council discussion also acknowledged that the city will benefit system-wide from the added interconnections and that the city will likely contribute some funding for mainline work; councilmembers asked staff to consider caps and percentage limits (for example, a not-yet-set percentage of total project cost) before the formal ordinance is prepared. Staff recommended an ordinance to memorialize the reimbursement area and collection mechanics and indicated it could return to council within two weeks for formal action.
The council’s immediate motion set the reimbursement area, the $1,000-per-ERU rate and the 15-year cap, and made the policy effective the following day to enable permitting and platting activity to resume.
