North Logan raises subdivision water-rights fee-in-lieu to encourage donations of water shares

The North Logan City Council on July 15 approved a change to the master fee schedule that adjusts the fee-in-lieu charged when developers do not dedicate secondary water rights for new subdivisions.

City staff explained the fee is computed by an equation that converts lots into acre-foot equivalents (using a 0.45 factor per lot in the example given) and multiplies that result by the fee per acre-foot. Staff said the fee in the schedule was increased to $16.50 per acre-foot to make monetary payment more expensive than donating canal shares, encouraging landowners and developers to transfer actual water shares to the city for conversion to culinary water.

During the public hearing, Susan Coles said she worried the change might be used to buy water for outdoor watering amid a drought and asked for clarification. Staff and council members explained the fee and the city’s intent: donated shares stay in the local canal system, are banked and converted to culinary use for indoor water needs, and the fee is intended to discourage sale of shares on the open market.

Council members asked how frequently staff will review the fee; staff said they monitor prices with the local canal company and expect to revisit the fee roughly every five years or sooner if market conditions change. Council moved and approved the fee schedule amendment by unanimous voice vote.

Staff noted the formula can produce a range of costs depending on lot counts and the 0.45-acre-foot conversion factor used in examples; the transcript records the per‑unit fee figure and example equation as presented by staff. The council directed staff to continue monitoring canal-share markets and to bring adjustments back as needed.

Next steps: staff will update the master fee schedule documents and public-facing guidance to reflect the new fee structure and schedule a future review if canal-share market conditions change.