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Council updates water‑dedication rules and creates limited incentive for developers to bring paper water rights

3380833 · February 26, 2025
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Summary

Hyde Park adopted a new water‑dedication ordinance that uses state DEQ planning factors to calculate required culinary and outdoor water dedication per use, allows a 25% reduction if a developer brings 50%+ of required paper water rights, and clarifies the city can withhold final approval until water rights are dedicated or fees paid.

The council adopted Ordinance 2025‑07 revising the city’s water dedication requirements and clarifying how the city will calculate and accept water rights or fees in lieu of rights.

Staff explained the new approach replaces the prior table (based on zone) with use‑based factors drawn from the Utah Department of Environmental Quality (DEQ) citation staff identified. The ordinance establishes required indoor and outdoor acre‑foot dedications per unit or per ERU by use, and explains calculation methods. The new rule also lets the city accept canal shares or other paper rights after conversion where appropriate.

Importantly, staff said the city will offer a 25% reduction in the overall water‑dedication requirement if a developer brings at least 50% of the required water as paper rights the city can file; the reduction is intended to incentivize developers to locate and dedicate available paper rights rather than pay large fees. Staff acknowledged the planning commission expressed concern about tapping city water reserves but explained the city has some reserve shares and also uses the fee fund to acquire rights for long‑term supply.

The ordinance also clarifies the city can withhold final plat approval until required water rights are dedicated or fees in lieu are paid. Councilmember Stephanie moved to adopt the ordinance and Councilmember Daryl seconded; council approved the ordinance.

Staff said the fee in lieu continues to be set at a defined price per acre‑foot (staff cited $5,000 per acre‑foot as a working figure used to purchase rights) and the reduction incentive aims to reduce large cash payments by encouraging paper rights dedication when possible.