EL PASO, Texas (KTSM) — A divided City Council approved on Tuesday, May 7 a 28% increase for a water impact fee that will cover the cost of water and wastewater services in developing neighborhoods.
“What council approved today is to look at the inflationary impact from when the original impact was proposed about 14 years ago and then 28% of that inflationary impact was approved. So, it’s a small increase in the impact,” said John Balliew, president and CEO of El Paso Water.
The increase is half of what El Paso Water recommended the City to adopt.
Council’s 5-3 vote means homebuilders and developers in the West, far Northeast and far West Side of the City will pay an impact fee when developing new infrastructure.
Opponents of increasing impact fees argued a price hike would only push new homebuyers away from El Paso and force developers to build outside of the city limits.
Ray Adauto, executive vice president of the El Paso Association of Builders, said the compromise of 28% was better than what other city representatives were proposing.
City Reps. Cassandra Hernandez, Chris Canales, and Josh Acevedo voted against the 28% increase, wanting to charge developers more to keep costs low for El Paso Water customers.
“It still impacts the consumer at the bottom end because the consumer will end up paying for that in the price of the home, the price of land, what the builder has to go out and finance as well to build the houses. Then finally, what it will cost to the consumer to finance the mortgage for whatever time they have,” Adauto said.
Constituents that were for builders and developers taking on 100% of the impact fee said it was unfair that they have to watch their water bills increase for developments they would never own.
Public comment lasted nearly three hours before the council gave their final vote.
Balliew said taxpayers in the city limits can expect to see no more than pennies added to their monthly water statements.
The City and El Paso Water are required to review impact fees every five years.
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