In July 2026, Salt Lake City Department of Public Utilities proposed updates to utility Impact Fees. In October 2026, Salt Lake City Council approved updates to existing water, sewer, and stormwater impact fees to better reflect the infrastructure costs associated with growth.
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’ 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.
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 Facilities Plan (IFFP, which is used to create the Impact Fee Analysis.
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 the process?
The proposed IFFP goes before Salt Lake City Council for consideration. The Council holds 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).
Impact Fees
Water Impact Fee
The impact fee for water is based on water meter size.
Water Impact Fee
| Meter Size | 1999 Impact Fee | Updated Impact 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
1999 Sewer Impact Fee:
The previous 1999 sewer impact fee was $545 per residential unit. For multi-family dwellings, the 1999 impact fee was $818 for a duplex, $1,226 for a triplex, and $409 per unit of a townhouse/apartment.
For remodels or common areas, a sewer impact fee was charged at $27 per fixture unit.
2026 Sewer Impact Fee:
Two impact fee options were developed for sewer. City Council passed Option 1, which is based on the size of the customers’ water meter.
Sewer Impact Fee
| Meter Size | Updated 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 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.
Stormwater Impact Fee
| 1999 Impact Fee | Updated Impact Fee |
|---|---|
| $374 per ¼ acre | $1,963 per ¼ acre |
City Council Process
Salt Lake City’s City Council hosted two public hearings. The first public hearing was on September 22nd at 7:00pm at the Utah State Fairpark. The second public hearing was on October 6th at 7:00 pm at the City and County building. Find more meeting information here.
If you have questions, please contact the Public Utilities Engagement by emailing [email protected] or calling (801) 483-6757.