Salt Lake City is proposing to raise developer impact fees for water, sewer and stormwater connections by as much as fourfold, and because Holladay builders tap SLC utilities, the increases would add thousands of dollars to every new home and commercial project in the city.

The fees haven't budged since 1999.

Under the proposed structure, a single-family home on a typical quarter-acre lot would see combined impact fees jump from $2,790 to $11,870. A five-acre commercial development with a three-inch meter pipe would go from $43,158 to $165,105, The Salt Lake Tribune reported Monday, Aug. 24. The Salt Lake City Council gave tentative approval in mid-August for the Department of Public Utilities to prepare the across-the-board hikes.

That matters locally because Salt Lake City Public Utilities is the largest water provider serving Holladay and Cottonwood Heights. Jesse Stewart, deputy director of SLC Public Utilities, told the Holladay City Council that the department serves approximately 360,000 people across Salt Lake City, Millcreek, Holladay, Cottonwood Heights, Midvale, South Salt Lake and other communities. Holladay's own General Plan water element notes that "all of the change impact is on Salt Lake City water utilities" when it comes to absorbing future growth-related demand.

The timing hits an active development pipeline. Holladay's council approved a rezoning of properties on Highland Drive from single-family to residential multifamily in June 2026, and the Royal Holladay Hills mixed-use redevelopment at the former Cottonwood Mall site remains in progress. Both projects would be subject to SLC utility connection fees at permitting.

"The mantra of impact fees is, growth should pay for growth," Salt Lake City Council Chair Alejandro Puy said. "It's not quite there right now, with almost a 30-year lag in an update."

SLC is also proposing to change how it calculates fees, basing them on the actual size of the sewer meter pipe rather than a flat rate. That shift means large apartment complexes could actually pay slightly less. A typical 200-unit complex on a third of an acre would see fees dip from $133,426 to $129,321 under the new formula.

The council plans to stagger the increases: 70% would take effect in 2027, with the remaining 30% phased in by mid-2028. The proposals must still be drafted as legislation, return to the SLC council for further debate and go through public hearings before final approval.

No Holladay city officials have publicly commented on how the fee increases would affect local project economics.

SLC Department of Public Utilities director Laura Briefer said the city's charges would still compare favorably with those in most other Wasatch Front cities, even after the increases. Development services administrator Kristeen Beitel said developers who primarily work in Salt Lake City initially pushed back on the proposed increases, while those familiar with higher rates in other markets seemed less surprised.

No public hearing date has been set. If ultimately approved, the new fees could begin taking initial effect in 2027.