Impact fees

Refuse the Juice makes good points when talking about the increases in impact fees that the city is considering through it’s water utility.  Their article included:

Do remember that every other utility bears the cost of adding rate payers to their system.  Electricity, gas and cable come to mind immediately.  They will gladly extend their services into new neighborhoods because they know the new rate payers will more than pay for growth – they understand the concept of economies of scale.  Think about that in this argument as it goes forward.  The city wants to charge you $3,000 to get on their water system.  Cable, gas and electricity = $0.00.   Somebody has their math wrong or is fibbing a little.

Privately owned companies are willing to connect new users for free, but the city owned water utility charges thousands of dollars to connect each new home to their water and sewer systems.

This is nothing other than another tax.  We already have the 4th highest tax among the 50 largest cities in the country.

We deserve better

Brutus

3 Responses to Impact fees

  1. Helen Marshall's avatar Helen Marshall says:

    Water in the desert is not the same resource as electricity or cable! Or would you say that all we need to do is sink a few more wells and we’ll have as much water as California?

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  2. Unknown's avatar Jerry K says:

    Private utilities provide (not always) free connection because their shareholders want growth in assets and revenue. Not the same in a public utility, I think. There is also the argument about how much water is available over time here as it is a desert. The depopulation of Juarez since the cartel wars might be a blessing in disguise as far as water supple is concerned.

    As for impact fees, these seem appropriate to me for all the incremental capital expenses associated with development, not just water. I am in favor of growth for El Paso, but growth that pays for itself.

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  3. Haiduc's avatar Haiduc says:

    WATER or to say the lack of water is one of the Big reasons no manufacturer wants to build/jobs/come here. Plumbing is expensive as they turn lead/copper pipes into GOLD!.

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