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Monday, January 20, 2014

Impact Fees To Be Raised


Anita Weston, Reporter

Rich Civic Times 

GARDEN CITY, Utah. January 9, 2014.  Zan Murray of JUB, the City Engineer, reported to the Council concerning the data that has been collected so far. 

The Study for Garden City is not yet complete, but a first try at determining impact fees was presented at the Thursday night meeting.  As more usage data is obtained, the figures can be refined.  However, it was felt that the City should get some information to assist them in changing impact fees to cover costs incurred by the City. 

Data was collected concerning the service area and a demand analysis.  The estimated value of the total system is $8,439,295.   This figure includes the treatment facility, Payne springs and all current storage and distribution facilities.  The current level of service was translated into ERCs (equivalent residential connections).  An ERC requires 1.12 gallons per minute.  In addition, all ERCs require a certain amount of storage. Emergencies also require additional storage which comes to another 953.38 gallons.  There is currently some excess capacity within the system. 

The latent or excess capacities as well as the percentage of growth over the next ten years are both figured into the formula.  The current debt that has been incurred for the water system must be considered as well.  Bills must be paid and future facilities are going to be needed.  The assumption that the City should begin to pay as they go is the desired philosophy for the future. 

After working with all of the above information, the recommended impact fee per ERC is $5,150.  This is a steep increase because the current fee is only $1,200.   Apparently the City has been paying for a fairly large part of the cost of adding new ERCs into the system.  This information will be taken into account as the Council considers a change in impact fees. 

The next step in the water study will be to look at the monthly fees that are currently being charged.  The report on the fees should be available in the next few weeks. 

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