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Finance director urges review of impact fees; reminds council of Utah six-year rule
Summary
Finance Director Brian Passey reviewed city funds and urged council to reassess impact fees so new development pays its way. He reminded the group that Utah law generally requires collected impact fees be spent or encumbered within six years or refunded.
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Finance Director Brian Passey reviewed the city’s fund structure and highlighted the importance of aligning impact fees and debt obligations with new development.
Passey explained the difference between the General Fund, special funds and enterprise funds and reviewed the status of the General Fund, RDA, Water and Garbage funds, Class C roads, Capital Improvement/Development and other funds. He stressed the need for clear, digestible public communications about incremental fee changes the city has been implementing "to keep up with the cost of operations and services."
He warned the council about Utah’s timing requirement for impact fees: "Impact Fees in Utah have a six-year spending requirement: collected funds must generally be spent or committed (encumbered) on public infrastructure within six years of collection, or they must be refunded." Passey noted Parks impact fees were last assessed in 2013 and that Water and Culinary impact fees were addressed in 2025. The briefing was positioned to guide priority-setting and budget decisions; no fee changes were adopted during the meeting.
