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Legislative audit of water exactions expected to spur policy discussion next month

October 24, 2025 | Utah League of Cities and Towns, Utah Lobbyist / NGO, Utah Legislative Branch, Utah


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Legislative audit of water exactions expected to spur policy discussion next month
League staff briefed the LPC on an ongoing legislative audit examining water exactions, telling members the auditors are drafting the report now and the League expects the audit to be published next month.

Why it matters: Water exactions — developer or project-level requirements that relate to water infrastructure capacity or mitigation — affect development approvals and infrastructure costs. Audit findings and any subsequent legislation could limit or standardize how exactions are calculated and applied.

What was reported

- Audit status: Staff said legislative auditors began the review in May–June and are currently in the writing phase; drafts have been circulated for comment. League staff and local officials have been contacted to review the audit.

- Anticipated outcomes: Staff expect the audit could propose legislative or administrative guidance on standardizing exaction studies, methodologies and possibly processes for calculating water impacts.

- Next steps: League staff promised to circulate findings and to coordinate member feedback if the auditors request additional review.

Ending

The League will update members when the audit is publicly released and asked members who have been contacted by auditors to share notes with League staff to inform its response and advocacy.

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