Cottonwood City Council approved capacity fees for water and wastewater fees Tuesday. Council had its first reading of Ordinance 643, which establishes these fees.
The city got rid of its impact fee system several years ago due to difficulty and tracking under a small city staff and new statutory restrictions. Since then, they’ve enlisted a comprehensive capacity fee study from the firm Wildan Consulting to inform their decision on the possibility and necessity of instituting these fees.
Some key differences between capacity and impact fees is that reporting requirements in tracking capacity fees is far less burdensome than it is for tracking impact fees. Capacity fees are also collected for the entire utility system, according to staff documents. This includes utility systems outside Cottonwood city limits. According to staff documents, capacity fees can only be assessed for water/wastewater services.
The proposed new water capacity fee for the average residential connection would be $1,124. For wastewater it would be $4,502.
A second public hearing on the proposed capacity fees is scheduled for Tuesday, Aug. 7 at Cottonwood City Council chambers. Council may proceed with the second reading of the ordinance at this time.