In July 2026, Salt Lake City Department of Public Utilities is proposing updates to utility Impact Fees.
What is an impact fee and who pays it?
Under the Utah Impact Fees Act (Utah Code Title 11, Chapter 36a), impact fees may only fund public facilities required to serve new development.
Impact fees are one-time charges that help pay for the City’s water, sewer, and stormwater infrastructure needed to serve growth. Based on the principle that “growth pays for growth,” these fees ensure the cost of expanding utility capacity is paid for by new development rather than existing customers. Fees are collected when a building permit is issued or when a property connects to the utility system with a utility permit.
Why now?
Salt Lake City’s Public Utilities’ current impact fees have remained largely unchanged for more than 25 years, despite significant growth, increases in construction costs and ongoing investments in critical water, sewer, and stormwater infrastructure.
Salt Lake City’s current impact fees are significantly lower than those charged by many other communities in Utah and neighboring states.
What does this mean for me?
For most residents, these changes will have no immediate impact. Impact fees are only charged for new development or projects that require new or expanded utility connections.
If you are building a new home, constructing a commercial building, completing a project that requires a new or larger utility connection, or redeveloping a site in such a way that impacts the public utility system, the updated impact fees may apply to your development.
How were the fees calculated?
Impact fees are based on a Impact Fee Analysis, which is used to create the Impact Fee Facilities Plan (IFFP).
The IFFP provides the legal basis for the City’s impact fees and is prepared in accordance with the Utah Impact Fees Act. It evaluates Salt Lake City’s water, sewer, and stormwater systems, projects growth over the next six years, and identifies the infrastructure improvements needed to maintain current service levels as the city grows.
What’s next?
The proposed IFFP goes before Salt Lake City Council for consideration. The Council will hold two hearings to receive public comment. If the Council approves the proposal, the impact fees will then take effect 90 days from the approval date.
Once impact fees are adopted by the Salt Lake City Council they are posted in the City’s Consolidated Fee Schedule (CFS).
Proposed Impact Fees
Water Impact Fee
The proposed impact fee for water is based on water meter size.
Proposed Water Impact Fee
| Meter Size | Existing Fee | Proposed Fee |
|---|---|---|
| 3/4-inch | $1,871 | $5,577 |
| 1-inch | $3,830 | $11,154 |
| 1.5-inch | $7,584 | $22,865 |
| 2-inch | $11,776 | $35,135 |
| 3-inch | $23,678 | $70,827 |
| 4-inch | $27,359 | $81,423 |
| 6-inch | $54,718 | $162,847 |
| 8-inch | $87,549 | $261,001 |
| 10-inch | $125,851 | $375,328 |
Sewer Impact Fee
There is currently no impact fee on sewer.
Two impact fee options have been developed for sewer. Option 1 is based on the size of the customers’ water meter. Option 2 is based on a charge per dwelling unit for residential users, while nonresidential users would be charged based on water meter size.
Per dwelling unit means that a rate is applied for each separate, self‑contained living space on a property or in a development.
Proposed Sewer Impact Fee
Option 1:
| Meter Size | Proposed Impact Fee |
|---|---|
| 3/4-inch | $4,300 |
| 1-inch | $8,802 |
| 1.5-inch | $17,430 |
| 2-inch | $27,064 |
| 3-inch | $54,418 |
| 4-inch | $62,877 |
| 6-inch | $125,755 |
| 8-inch | $201,208 |
| 10-inch | $289,235 |
Option 2:
Residential
Single Family: $4,300
Duplex, Triplex, Multifamily: $3,225 per dwelling unit
Nonresidential – based on water meter size
| Meter Size | Proposed Impact Fee |
|---|---|
| 3/4-inch | $4,300 |
| 1-inch | $8,802 |
| 1.5-inch | $17,430 |
| 2-inch | $27,064 |
| 3-inch | $54,418 |
| 4-inch | $62,877 |
| 6-inch | $125,755 |
| 8-inch | $201,208 |
| 10-inch | $289,235 |
Stormwater Impact Fee
The proposed impact fee is collected on a per ¼-acre basis, which is assumed to be the size of a typical residential unit or equivalent residential unit (ERU).
ERU is the average amount of hard surface, such as rooftops and driveways found at a typical home. It is used as a standard way to measure and compare impervious (non-absorbing) areas on properties.
Proposed Stormwater Impact Fee
| Existing Fee | Proposed Fee |
|---|---|
| $374 per ¼ acre | $1,963 per ¼ acre |
How to share feedback
If you have questions or feedback, please contact the Public Utilities Engagement by emailing [email protected] or calling (801) 483-6757.