Park City adopts public infrastructure fee to require new developments to help pay for water and sewer extensions

Park City’s council voted 7-0 to adopt an ordinance establishing a public infrastructure fee to recover a portion of the cost of constructing public water and sewer mains for new developments and properties connecting to existing mains.

City staff explained the two-part approach: a main-benefit fee, calculated from the square footage of area served by a new main and intended to equitably distribute costs across developers; and an in-lieu-of-assessment fee, based on linear frontage for individual parcels connecting to existing mains. Staff said residential in-lieu-of-assessment fees will be capped at 100 linear feet and that the council may waive fees in negotiated economic-development cases.

Staff presented example calculations to illustrate the approach: “That makes the cost per acre for water to be $1,437.48, and the cost per acre for sewer to be $3,092.76,” and stated per-linear-foot examples of $27.50 for water distribution and $56.25 for sewer lateral lines. Staff described the intent as reducing the cost burden on existing utility customers and ensuring new connections pay a fair share.

Council discussion focused on whether the fees apply only to new development (they do) and how the fees are collected; staff said developers would pay the fees to the city and typically pass costs to buyers via special assessments or bonding when appropriate. Councilmember Charlie Davidson moved to approve the ordinance (12-48-20-26); the motion passed 7-0.

What to watch next: Staff will periodically review and update fees to reflect construction cost inflation; the ordinance gives council discretion to waive fees as part of an economic-development incentive if the city determines the development provides significant local benefit.