Impact fee update 2025
A study showed a maximum single-family impact fee of about $35,000, up from $12,000-$13,000. On Jan. 27, 2026 the council directed staff to draft fees starting at 58% of the maximum and rising to 75% over five years.
- Where it stands
- In review
- Type
- Code change
- Location
- Citywide and Southwest Annexation area
- Applicant
- City of Orem
Every hearing and vote
November 18, 2025 · City Council
Draft impact fee facilities plan and fee analysis
Discussed
Fred Philpott of LRB Public Finance Advisors presented a draft Impact Fee Facilities Plan and Impact Fee Analysis covering parks and recreation, police, fire, transportation, culinary water, wastewater and storm water, with separate calculations for the city-wide area and the Southwest Annexation area. The maximum fee for a single-family home on a typical 0.2-acre lot would rise from about $12,000-$13,000 to about $35,000, which would be the highest in Utah County (average about $20,000). Philpott attributed the increase to cost growth since the 2018 study; assumed parkland cost rose from $170,000 to over $575,000 an acre, raising the parks fee 178%. Council members said they preferred a fee closer to the median; options discussed were adopting a percentage of the maximum, phasing increases, or removing the optional 'buy-in' component. The council decided to hold another work session before the statutory public hearing. Any adopted fee takes effect after a 90-day wait.
- Presenter: Fred Philpott, LRB Public Finance Advisors
- Proposed maximum single-family fee: about $35,000 (current about $12,000-$13,000)
- Revenue must be spent within six years or be subject to reimbursement
January 27, 2026 · City Council
Public hearing: impact fees
No action
Assistant City Manager Ryan Clark and consultant Fred Philpot outlined options: the calculated maximum, about 58% of the maximum (regional average), or a 'surgical' approach reducing parks fees and removing buy-in components. No one spoke at the hearing. Council Members Mecham and Lambson favored at least the regional average with periodic escalation; Millett and Killpack said fees should not exceed 75% of the maximum; Muhlestein preferred the simpler percentage approach; Gale supported the lower option given the city is largely built out. Consensus direction to staff: start at 58% of the maximum and escalate to a ceiling of 75% over five years, roughly 7% a year compounding. Staff will draft an ordinance with year-by-year schedules.