Provo council approves higher water impact fees, effective July 1

The Provo City Council on Jan. 14 voted unanimously to adopt a new water impact fee schedule based on the city's updated water master plan and a facilities plan prepared by an outside consultant. The increases, approved 7-0, will not become effective until July 1 to give developers time to plan.

Council packet materials and presenters said the new fees reflect costs in the water master plan prepared with Bowen Collins and a facilities plan from Zions Public Finance. "Residents aren't the ones paying the impact fees. It's developers who would be paying it," Kelsey Sarbach, a budget officer for the city, told the council during the presentation.

Why it matters: The fees are intended to charge new development for the costs of system expansion rather than subsidize growth from city general revenues. The council and staff said the July 1 effective date is deliberate so projects already underway can finish under the current schedule.

Key details: The council heard public comment from industry and neighborhood representatives before voting. Eileen Miller, government affairs director for the Utah Valley Home Builders Association, thanked the city for involving builders early in the process and said the association understands higher costs on infill or difficult-to-develop parcels. Local resident Sam Wollman asked how the increases would translate to specific projects and whether they would apply to projects already under way.

Councilor Rachel Whipple summarized the fee structure presented in staff materials: "So before the impact fee for a single family residential unit was $4,042. And this is changing it to recognize the different water costs going to a small lot and to a standard lot. So for a small lot, it will go up to $4,916. And for a standard lot, it's $7,579." Sarbach confirmed the fee schedule is in the council packet and that fees would be charged to developers and used only for new growth.

What the vote does and next steps: The ordinance adopting the new schedule passed 7-0. Staff and the consultants will finalize implementation steps so the new schedule becomes effective July 1. Councilors said they will continue to monitor how fees interact with broader housing and infrastructure needs.

Public comment and record: The discussion included representatives from the public works team and consultants on Zoom who were available for technical questions. Staff noted the studies and the proposed schedule are included in the meeting packet and available online.

Votes at a glance: Ordinance adopting revised water impact fee schedule — passed 7-0; effective date July 1.