Utah Supreme Court
606 P.2d 217 (Utah 1979)
614 P.2d 1257 (Utah 1980) (decision on rehearing)
NOTE: Both decisions are important and both should be consulted.
Cities have no inherent power, but only those granted by the state legislature, and those necessarily implied to carry out their responsibilities.
The authority to preserve the health, safety, and general welfare includes authority to impose reasonable fees and conditions on land use and development.
If a fee (or property dedication) required from a developer is reasonably attributable to development activity, then the requirement of fees or dedication of property is permissible; if not, it is forbidden and amounts to confiscation of private property in contravention of constitutional prohibitions.
If a city exacts a fee in lieu of property dedication, it is only fair that the fee so collected be used in such a way as to benefit demonstrably the subdivision in question. This is not to say to the benefit must be solely to the particular subdivision, but only that there must be some demonstrable benefit to it.
Dedications of land (or facilities constructed from required fees) may benefit an entire community as well as an individual subdivision.