Provo overhauls stormwater impact fees, targets $76.8m project pipeline

Provo overhauls stormwater impact fees, targets $76.8m project pipelineThe Utah municipality has adopted a new Storm Drain Master Plan that shifts development fees to an Equivalent Residential Unit (ERU) model, aiming to fund a portion of its extensive capital backlog while addressing historical infrastructure deficits.

The city identified $76.8 million in stormwater capital needs, of which $25.8 million is eligible to be funded through impact fees.

Provo will transition from a gross acreage fee structure ($8,262.93 per acre) to an ERU approach, setting the new proposed fee at $1,477 per ERU.

The council also adopted the FY 2026-2027 Stormwater Service District budget of $7.29 million.

A separate Wastewater Collection Master Plan update was approved, identifying an average annual rehabilitation need of approximately $5 million for the city's sewer pipelines.

The Provo City Council has unanimously approved an updated Storm Drain Master Plan, setting the stage for a major restructuring of how the city funds its drainage infrastructure. The plan, developed with consulting firm Hanson Allen Luce, identifies $76.8 million in required capital improvement projects to address flooding and capacity issues across the city. To fund future growth, Provo is shifting its stormwater impact fee methodology. Previously, the city charged a flat rate of $8,262.93 per gross acre of development. Under the newly approved plan, the city will adopt an Equivalent Residential Unit (ERU) approach based on impervious surface area. Utilizing machine learning to delineate directly connected impervious areas, the city calculated a new proposed stormwater impact fee of $1,477 per ERU. Consultant Kacen Schurz noted that the ERU approach "levels the playing field" by tying fees directly to a development's actual impact on the stormwater system. To prevent rate shock for the development community, the city plans to update these impact fees annually rather than every five to seven years. Of the $76.8 million project pipeline, approximately $25.8 million is impact fee eligible. Stormwater Engineer Carlos Garcia explained that the remaining gap primarily stems from existing developments built before modern stormwater standards were implemented in the early 1990s. The city will tackle these deficient areas by prioritizing them through annual capital project funds. In a related move, the council adopted the FY 2026-2027 Stormwater Service District budget at $7,291,034. The council also unanimously approved an update to the city's Wastewater Collection Master Plan, prepared by Bowen and Collins. Water Resources Engineer Lane Pierce reported that while the current sewer system has adequate capacity, the city will need to invest an average of roughly $5 million annually in pipeline rehabilitation and replacement, based on an estimated 70-year lifespan for sewer infrastructure. Unlike the stormwater update, the wastewater plan did not include any new rate or impact fee recommendations.