Parowan consultant proposes $7,285 water impact fee; council sends draft to public hearing

Parowan — A consultant told the City Council on Jan. 8 that updated modeling and planned water projects would produce a draft water impact fee of $7,284.76 per equivalent residential connection (ERC), a significant increase from the city's current fee of roughly $2,056.

Aaron Anderson of Bowen Collins & Associates walked the council through the two statutory companion reports — the impact‑fee facilities plan and the impact‑fee analysis — and the math behind the increase. Anderson said the analysis combines a “buy‑in” cost for the city’s existing capacity (what new development should share for existing facilities) and the proportionate share of new capital projects required to serve growth over a 10‑year planning window. Projects cited in the draft plan include a 6‑Mile Spring water‑treatment plant and an east‑side storage tank. The draft assumes approximately 561 new ERCs over 10 years — roughly 50–60 new homes per year — and factors in a $1,075,000 state grant that staff has allocated to non‑growth needs.

Council members pressed on several points: the assumed growth rate, cash‑flow timing for bond payments, grant allocation choices and the effect of a higher impact fee on housing affordability. Several members asked the consultant to run scenarios with lower growth rates; Anderson said the per‑unit price does not change dramatically if growth assumptions are adjusted because the calculation allocates a proportionate share of fixed project costs, though projected revenues and cash‑flow timing would vary.

Mayor Holcomben and other council members emphasized they wanted public input. The council directed staff to post the draft report for the required 10‑day public inspection period and schedule a public hearing at the next meeting so residents can comment. Anderson noted that if the council adopts an impact fee, it would not take effect until 90 days after enactment by resolution.

What happens next: Staff will publish the draft analysis for a 10‑day review period, hold the public hearing and then return a final proposal for council action. If adopted, the fee would take effect 90 days after the council’s resolution.