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Beaver City council weighs raising developer water‑acquisition fee, to consider cash‑option for developers
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Summary
Staff proposed allowing developers to pay a water acquisition fee instead of transferring water rights; council discussed tying the fee to a 5‑year average and proposed raising the base fee from $6,500 to approximately $20,000–$25,000 (a working figure of $22,000 was discussed) and asked staff to prepare a public hearing and calculations.
Beaver City council opened an extensive discussion on the city’s water ordinance after two developers reported difficulty purchasing water rights required by code. Under current language developers must transfer water rights equal to the five‑year average use for new lots; staff proposed offering a cash acquisition fee as an alternative.
Staff explained the legal and technical framework: Utah’s division of water rights and the ordinance's five‑year average requirement determine how many acre‑feet developers must provide. Council members said the current acquisition fee on the books — $6,500 per acre‑foot — is far below market and constrains new development. Several members proposed updating the base fee to between $18,000 and $25,000 per acre‑foot; one working proposal to set the acquisition fee at $22,000 per acre‑foot was brought forward.
Council discussed safeguards: limiting the amount a single developer may purchase to avoid selling down the city’s water base, and using collected fees to build a city water‑acquisition fund so the city can buy water in bulk at lower cost. Staff and council also reviewed conservation options such as tiered rates and conservation pricing to encourage efficient use.
Council instructed staff to run the five‑year average calculations, prepare ordinance language that allows a payment option (not a permanent replacement of the transfer requirement), and schedule a public hearing and resolution to change the fee schedule.
"Right now our price is $6,500 — it's ridiculous," one council member said during debate about fairness and market reality. Council members expressed interest in preserving water for local housing affordability while giving developers a predictable option to proceed.
Next steps: staff to prepare the fee calculations, draft ordinance language that includes an acquisition‑fee option and potential upper limits, and place the fee change on the agenda for a noticed public hearing.