By Myrna Trauntvein
Times-News Correspondent
Doran Kay, Mona Town Council member, tried to convince
council members not to adopt two ordinances dealing with
water impact fees and extraterritorial water
connections.
It was all to no avail&emdash;he was out-voted by three
council members and the mayor.
Kay read a statement for public record in which he
explained his objections, nevertheless, most council members
listened without emotion and rejected his call to exact
water as part of the impact fee schedule across the board
without the optional choice to be offered under the proposed
ordinance.
"It has been suggested that large developments be
required to tender water as part of the impact fee while
small developments be required to pay a monetary assessment
only," said Kay.
"My concern with this premise is the unequal treatment
between one developer and another. If the Town of Mona was
subject to a 'Tigard' challenge on basis of the distinction
of old established lots verses new subdivided lots, then it
must be all the more vulnerable to a challenge on the basis
of distinction between one developer subdividing and another
developer subdividing at the same time."
Specifically Kay said he objected to the proposal to give
those building new homes in the community the option of
paying an impact fee of $3,488 per residential building
permit or of paying an impact fee of $1,543 plus 1 1/2 acre
feet of water per residential building permit.
"Such a selection will render the second choice as
meaningless language in the ordinance because everyone will
opt for the first choice since there is noting required but
to pay or borrow a little extra money on the mortgage,
whereas the second option requires a great deal more in the
effort to locate water, negotiate a price, file change
applications, and update title, all of which should be
factored as part of the impact for development," said
Kay.
If the community receives money as opposed to an in-kind
assessment of water rights, then the town is left with the
additional task of converting an impact fee fund into water.
Water is at a premium and will become more significant to
the community in the future.
The state engineer closed the north Juab drainage to any
new appropriation of water rights, said Kay.
"This means the Town of Mona will be limited to a finite
resource that will be available on the open market for sale
to purchase," he said. "This information will be generally
known among potential water right owners who may be willing
to sell water to the Town of Mona."
The town's leverage ability will be reduced by the
economic law of supply and demand and the necessity of
complying with state statute requiring the town to expend
the impact fees within six years of receipt.
"These conditions will implicate the town for the adverse
effect it will have on inflating the market price of water
over all," said Kay. "It would also be extremely difficult
for the Town of Mona to forecast and accurately substantiate
impact fees for the replenishment of water rights in the
future under such circumstances."
He said the town risked other impact at the tax payers
expense such as possible cutbacks in the quantity of water
approved in a final change application, or title work that
may require litigation.
"And finally, in a worse case scenario, the town may be
unsuccessful in locating any water at all to purchase, in
which case the town may need to exercise eminent domain and
take from those who have water rights by condemnation to
deliver water to impact fee payers, in which case the town
may be actually representing some citizens at the expense of
others."
The argument can be made, because the town currently has
sufficient water, that the impact fee may help recoup costs
incurred on the purchase of surplus water. The downside, he
said, to an optional assessment allowed developers to
compete on a first come basis to use the available reserve
of water at the substantiated impact fee price that the town
paid for it yesterday.
That may not necessarily reflect what the current market
fee is.
"In this sense, the first developed lots would be allowed
to pay an impact fee for water at a discount subsidized by
tax payers compared to what may ordinarily be required to
pay on an open market."
"I further offer as a solution for the town to be able to
utilize the reserve of water it has available and also to be
able to recoup costs incurred for its purchase that a
reduction in the water requirement be extended across the
board by one half acre foot, until such time that the town
depletes its surplus supply and that the substantiated
monetary assessment equal to the 1/2 acre foot reduction be
added as a monetary assessment on the impact fee schedule in
addition to the capital facilities impact fee."
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