Kanosh reviews consultant study that would raise water impact fee to about $6,400

A consultant—s analysis that would raise Kanosh—s water impact fee from about $2,300—2,400 to roughly $6,463 was presented for public comment at a Kanosh Town Council meeting, and council members discussed wording, timing and likely revenue uses.

Council member (unnamed) said the public meeting was “to give the public a chance to comment on the Kanosh Town Corporation impact fee analysis, which we just had done by Lynn Wall.” The study, prepared by consultant Lynn Wall, bases the fee on past and recorded water-related expenditures the town has incurred, council members said.

The draft ordinance and accompanying fee schedule would increase the per-connection impact fee to about $6,463 in year one, compared with the current figure of about $2,300—2,400. The ordinance also includes a tiered schedule that depreciates the charge over time; the schedule in the draft runs through 2044, council members said.

Why it matters

The fee applies only to property development that requires a water connection; it does not apply to existing homeowners who are not developing lots. Council members said impact-fee revenue must be used for water system improvements and must be spent within six years of collection. That restriction is built into the draft ordinance and repeatedly noted in the public discussion.

Details from the discussion

- Current and proposed amounts: Council members described the current impact fee as about $2,300—2,400 and said the consultant—s updated schedule would start at about $6,463, a roughly $4,000 increase in the first year shown on the schedule.

- Hookup and deposit amounts: The meeting noted a water hookup fee of $1,650 and a separate deposit (described in discussion as about $300). Dixie Power connection costs and other utility connection charges were discussed as separate line items the developer would pay.

- Use of funds: Council members said impact-fee receipts must be used for water improvements and will go into a specific fund. Possible uses mentioned included meter upgrades and other water-system items tied to the well project.

- Timing and legal limits: The draft ordinance as discussed would not take effect immediately if adopted; council members said there is a 90-day delay before the new fees would go into effect. They also noted the rule that the town may charge up to, but not more than, the fee established by the consultant—s study.

- Collection language: Several council members raised a drafting concern about Section 3 of the ordinance, which currently reads that the fee "shall be collected by Kanosh at the time of issuance of a building permit, which includes water connections." Council members said that wording could create confusion because a water connection can occur without a building permit. The group discussed rewording the clause to say the fee is collected at the time of payment for a water connection (or at building permit issuance when a permit is required).

- Revenue expectations: Council members discussed likely revenue and frequency of new connections. One estimate given during discussion was that the town might see about 10 new homes over several years; at an increase of about $4,000 per hookup that would amount to roughly $40,000 in additional revenue if 10 connections occurred. Speakers cautioned that actual development is uncertain and that the town should not expect a large immediate windfall.

- Relationship to ongoing projects: Council members repeatedly tied the fee study to Kanosh—s well project and other water investments. They noted the study only accounts for money already spent (not future, uncommitted project costs) and said the council could revisit the fee if the town incurs additional debt or major new water-project costs.

Council commentary and public remarks

Council member (unnamed) said the council faces a trade-off between raising local revenue and placing additional costs on residents. "How do we move towards being more self-sufficient?" the council member asked, adding that while the town is reluctant to saddle residents with large bills, relying on grants or loans can delay projects and impose external conditions.

Another council member (unnamed) suggested that the tiered depreciation in the schedule represents a buy-in to the existing system, with the initial higher amount intended to reflect current capital costs and then decrease over time as depreciation is applied.

No final action recorded

At the end of the public comment period, council members discussed clarifying the ordinance language and noted the 90-day effective period if the council adopts the ordinance. The transcript contains no formal motion or recorded vote on the ordinance during the public meeting; council members indicated the draft could be revisited and updated before any final adoption.

Ending

The public comment period on the Lynn Wall impact-fee analysis concluded and the council moved on to other town business. Council members signaled interest in clarifying collection language in the ordinance, considering whether to revisit the fee following any major new borrowing for the well project, and in monitoring development so the fee—s revenue potential can be reassessed.