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Levan council to review $13,000 water impact fee dispute after resident objects to timing
Summary
Resident Tyler Royce told the Levan Town Council he would have paid a $1,500 hookup fee earlier and avoided a new $13,000 water impact fee; council agreed to review records and consult the attorney before deciding whether an exception is warranted.
Tyler Royce told the Levan Town Council on Aug. 25 that he began a building-permit application June 5, 2024, and that his permit was issued July 18, 2024, but he did not request water service until July 12, 2025. When he went to pay for a water hookup he said he found an unexpected $13,000 impact fee attached to the meter hookup. Royce said he would have paid a $1,500 hookup fee earlier if he had known the larger impact fee would take effect in July 2024 and that he had a year in which to pay the smaller fee while he completed other work on the project.
The council and staff reviewed the timeline and what was recorded on Royce’s building permit and planning minutes. Christine (town staff) and the town attorney told the council the ordinance establishing impact fees went into effect in July 2024 and that the ordinance included a 90-day implementation period after passage. The town attorney’s stated position, relayed in the meeting, was that if water service was not requested at the time the permit was paid for the town could not grant a retroactive exemption.
Council members and members of the public questioned how the town posted notice and whether extensions or pending permits in the planning system had been treated consistently. Council members also raised whether some building-permit extensions that had been filed earlier should be treated as grandfathered for impact-fee purposes; staff said they would check records for other permits that might be in a similar situation.
After discussion the council agreed to research the permit records and consult with the attorney, then bring the matter back at a future meeting so the full council can vote. No final waiver or refund was granted at the meeting.
Why it matters: Impact fees are intended to pay for capacity the town says is needed for growth (the council said water and power were the two impacts currently covered). A decision about a retroactive waiver could affect other pending permits and the town’s approach to notice and permit extensions.
Details reported at the meeting: Royce said he began his application 06/05/2024 and the permit was issued July 18 (year stated in meeting). He said his hookup payment on July 12 resulted in a $13,000 impact charge; he contrasted that with a $1,500 hookup fee he would have paid earlier to avoid the larger charge. Town staff said the impact-fee ordinance was passed in July 2024 and had a 90-day implementation period. Staff and the attorney told the council the ordinance restricts the council’s ability to make ad hoc exceptions. Council members asked staff to identify any other permits in the same window (extensions or pending permits) that might be similarly affected.
The council asked staff to return with: the permit and planning minutes for Royce’s application, a list of other permits in the same time frame, documentation of how the ordinance and implementation were posted, and advice from the town attorney on whether any discretionary relief is legally available. The council did not set a firm date for the follow-up but asked that two absent council members be present for the discussion.
