New Impact Fees On Water Hookups

Anita Weston, Reporter

Rich Civic Times 

GARDEN CITY, Utah. March 2014.   Bruce Warner, Council Member, reported that he felt he needed to know more about the water situation in Garden City.  He had Riley Argyle, the Supervisor of Public Works, take him on a tour of the culinary water system in Garden City. 

Warner wanted to particularly know what the problems and issues were.  He carefully went over the financial reported concerning the water enterprise fund. He feels that water impact fees need to be increased in order to pay for the additional water that will be used by the families and/or businesses connecting to the current system.  New growth needs to pay for itself.  Also, he was told that many developers actually bring water shares with them when beginning a subdivision or development.   

He found there were easement difficulties in getting to the various storage tanks that are owned and/or shared by the City.  Some of the areas did not have necessary water pressure to meet fire code requirements.  The City really has only one water source so that more diversity is needed.  Some of the older pipe lines are too small and need to be replaced.  There are several areas in the system that has old lines that also need to be replaced.  He reported that the City has what it has and that the workers are doing a good job.  He noted that improvements and progress toward a better system needs to be attempted. 

Fred Philpot, a municipal financial consultant, reported to the city council concerning the findings of the water study  completed by his consulting firm.  The study started by determining the existing and future demand within the service area.  Philpot then looked at the inventory of all of the existing facilities and established the level of service.  He identified the existing and future capital facilities necessary to serve the new growth that is expected.  He also looked at all revenue resources to finance system improvements, and then conducted a proportionate share analysis. He was able to determine the maximum impact fee for an equivalent residential connection (ERC) would be $4,420.  This is a refinement from what was considered last month.  From this information a chart was made determining the maximum impact fee for each land use type. 

Philpot had a chart that showed comparisons among many cities in Utah and their culinary impact water fees.  Currently, Garden City has been charging $1,178 for a ERC.  That fee needs to be raised to the $4,420.  Fred also showed which cities have updated their fees in just the past year or two.  It is very evident that there are several cities whose fees are close to this figure or a bit more.  The highest fees shown on the chart currently charges $5,309. 

Philpot suggested that the City adopt the recommended impact fee.  He noted that upon a public hearing concerning rate changes, that the suggested rates be adopted.  He reminded that City that impact fees become effective 90 days from adoption. 

The entire report is on the City’s web site for those individuals interested in looking at the entire document.  It is called 2014 Culinary Water Impact Fees and Rate Analysis, Garden City, Utah, March, 2014. 

The Council did vote to accept the recommended impact fees.