Cedar Fort planners weigh lowering minimum water-rights required for building permits

Cedar Fort Planning Commission members spent the bulk of their April 5 meeting debating whether to lower the town's minimum water-rights requirement for building permits, currently set at about 1.45 acre-feet per dwelling, after state rules were cited that allow wells at about 0.45 acre-feet.

Commission members said the town's existing 1.45-acre-foot requirement is raising costs and discouraging developers from extending the municipal water system. Staff and several speakers urged the commission to develop a tiered minimum tied to whether a property connects to the town system and the property's intended use.

Why it matters: Cedar Fort's minimum affects whether new lots are drilled as private wells or connected to town water lines. Developers and a subdivision applicant told the commission the current threshold makes bringing town water into new subdivisions economically difficult and can push purchasers to drill private wells instead, complicating long-term planning for the town's water supply.

Discussion details: Commissioners and participants contrasted the town's requirement with a lower state threshold. A participant summarized the state approach as allowing wells at about 0.45 acre-feet per dwelling; commissioners noted the town previously required 1.45 acre-feet to 'bank' water for future needs and to cover irrigation and livestock demands. Commissioners and staff raised intermediate numbers discussed at the meeting, including 0.5, 0.75 and 0.9 acre-feet, but no rule change was adopted at the meeting.

Developer perspective: An applicant involved with a proposed subdivision told the commission the higher town requirement prevented the developer from economically bringing town water into the project. "We would have been inclined to pull the water system into the subdivision if it was 0.45," said Ashley (role/title not specified). She said the cost of acquiring water rights at current market prices made that option impractical for her project.

Costs and market signals discussed: Meeting participants gave several approximate figures during the discussion: one participant said water shares have sold in recent months in the roughly $25,000'$35,000 range per acre-foot share depending on the size of the purchase; speakers said the cost to transfer shares and prepare a well or hook-up can add tens of thousands of dollars (participant estimates ranged roughly $50,000'$80,000 when accounting for transfers and infrastructure). The commission also noted the town recently increased its water impact fee to approximately $11,000 per connection.

Commission direction and next steps: Commissioners and staff coalesced around drafting a clearer minimum and a schedule that would establish a lower base minimum for properties connecting to the town system (commissioners indicated a half-acre-foot minimum was under consideration) with additional required shares added depending on lot size and intended uses such as livestock or greenhouse operations. Staff said they will continue evaluating the town's water-rights inventory, update the town's table tying dwelling size and intended use to required shares, and bring a formal recommendation to the town council for consideration. No formal ordinance change was adopted at the April 5 meeting.

Context and constraints: Staff reminded the commission that the town's Water Master Plan (2022) and changes in state well-permitting rules affect the calculations and the town's ability to "bank" rights; the commission noted any future minimum must also reflect how the town intends to manage stockholder agreements and leases of water to the town. Several speakers emphasized that uses outside a single-family dwelling (for example, irrigated yards, multiple livestock, or greenhouses) require additional water and could raise minimums for those properties.