Kanosh public meeting reviews new water impact fee that would more than double hookup charge

An updated impact-fee analysis prepared by consultant Lynn Wall could raise Kanosh’s water impact fee for new development from about $2,300 to roughly $6,463, town officials said at a public meeting on the analysis.

The fee covers a portion of the town’s past water capital costs and must be used only for water improvements. "It has to be spent within six years, and it has to be spent on water improvement projects," a council member said during the public discussion.

Why it matters: Town leaders told attendees the increase reflects capital work already paid for by the town, including recent and past well projects. The council and staff said the impact fee is charged only to someone who develops a lot or requests a new water connection; it does not apply to residents who are not building or connecting new service. Money collected is restricted to a dedicated water fund and cannot be spent on unrelated town expenses.

Key details from the meeting: The consultant’s schedule would raise the town’s impact fee immediately to about $6,463 for a new connection in the first year and then tier downward over time under the depreciation model used in the analysis. Council members discussed specific charges that accompany a new connection: a water hookup fee the meeting named as $1,650, and a deposit (reported during discussion as about $300). The town’s current impact fee was described in the meeting as "about $2,300," and the draft ordinance shows a much higher first-year buy-in under the updated schedule.

Council members compared Kanosh’s draft fee to other jurisdictions. One member said Fillmore is charging $3,000 per ERC for future water rights this year and that connection charge schedules vary across nearby towns. Several members noted that even with the larger fee, Kanosh would not necessarily receive a large immediate revenue boost because the town typically sees a small number of new hookups each year. "If 10 more homes were to go, and even in a year, it's $40,000 — it’s not nothing to you and I, but to the town, it's really not a huge amount," a council member said.

Questions and clarifications raised at the meeting included how the draft ordinance collects the fee. A council member asked about wording in section 3, which currently states the fee shall be collected at the time of issuance of a building permit (including water connections). Several attendees and council members recommended clearer language that ties collection to payment for the water connection (or to issuance of a permit when a building permit is required) so that people who request only a water connection are not misled into thinking the building-permit fee includes the impact fee. One suggested rewording offered during the discussion was to specify collection "at the time of payment for a water connection, or prior to issuance of any relevant building permit."

Timing and next steps: Participants noted the draft ordinance would not take effect immediately if adopted; the council discussed a 90-day delay between adoption and effective date to allow the town to implement the new fee schedule and update printed materials. Council members also noted the schedule can be revisited: "This could be revisited every year," one member said, and the town may update the study again after it acquires new debt or completes additional projects that would change the cost basis.

Context on town finances: Speakers described the town’s broader financing challenge: limited recurring revenue means Kanosh has relied on grants and loans for large projects such as the well and dam work, which can slow completion and increase costs. Council members said the impact fee is intended to help cover a portion of those capital costs while keeping the ongoing burden on residents limited.

No formal action was taken at the public meeting. The session provided public comment on the draft impact-fee analysis and language; council members and staff flagged wording changes and said the council will consider next steps through the regular ordinance process.