Salt Lake City Council raises developer impact fees for utility infrastructure

The Salt Lake City Council voted unanimously to approve substantial increases to utility impact fees for new development, marking the first update to these assessments since 1999. The one-time fees, assessed when builders receive permits for residential, commercial, or industrial projects, help fund municipal water, sewer, and stormwater infrastructure.

The fee schedule will phase in over the next two years through mid-2028. For a standard single-family residence with a three-quarter-inch meter, combined utility impact fees will rise from $2,790 to $11,870. For a commercial project on five acres utilizing a three-inch meter, fees will increase from $43,158 up to $165,105.

City officials and the Department of Public Utilities cited inflation, construction costs, and necessary capital improvements—such as an $850 million upgrade to the Rose Park water reclamation facility—as key reasons for the change. Council members noted that adjusting the fees shifts more infrastructure costs onto new development rather than existing utility ratepayers. Once fully implemented, the updated structure is projected to generate roughly $7 million annually for the utility systems. The changes will not directly offset recent increases in monthly utility billing rates.