Council delays vote on power impact fee study after builders raise data and timing concerns

The Hurricane City Council on Monday opted to continue consideration of Ordinance 2025-4, a proposed power impact fee facilities plan and analysis, after several developers and the study authors asked for more time to answer detailed questions. Stacy Young, government affairs director for the Southern Utah Home Builders Association, told the council the study’s data make it hard to confirm the impact fee would not charge new developers for existing excess capacity and for new facilities — a concern she described as a potential “double payment.”

Young also flagged uncertainty in long-range projections, saying roughly $11 million of the plan’s roughly $40 million of planned facilities sits in later years, where forecasts are more tenuous. Engineering representatives and consulting staff acknowledged the concern and recommended additional review of assumptions, percentages used to apportion costs, and whether a shorter planning window should be modeled.

Mayor and council members discussed interim steps: consultants will revisit percentage allocations for projects at the tail end of the planning horizon; staff and consultants will exchange follow‑up answers by email; and the council asked staff to bring clearer scenarios to a future meeting. The council voted to continue the item to allow the authoring firm and city staff to respond to the submitted questions and to meet with council representatives and the power board.

Council members emphasized the policy tradeoffs between impact fees and alternatives such as bonding, which funds infrastructure up front, and noted impact fees can be sensitive to timing and “lumpy” capital needs. The motion to continue was made by Councilman Hershey and seconded by Councilman Thomas and carried without opposition.

The council did not adopt the ordinance; a follow‑up staff/consultant meeting and an email response are expected before the item returns for decision.