Just as new water bills begin to go out with a residential rate increase, at least one government entity will consider opting out of the new stormwater utility district, which officially took effect at the beginning of this month.

The Housing Authority of the City of El Paso has an item on its Wednesday (March 26, 2008) agenda regarding a "potential legal matter pertaining to city of El Paso Ordinance 16668 (June 19, 2007)."

That is the ordinance that created the district, which is operated by the El Paso Water Utilities and overseen by the Public Service Board.

HACEP Executive Director Gerald Cichon said "there's a question whether that's a tax or usage fee."

Board member Larry Medina, who will be serving at his last meeting as a HACEP commissioner, said the Public Service Board is seeking participation in the district from local governments, which "are asking to opt out."

He said "is something that will hit all the government entities in the county of El Paso."

Medina said he favored doing so, likening the issue to how government entities do not pay property taxes.

"It's the same taxpayer dollar," he said. "At the end of the day when something like that happens the only people who win are administrators and lawyers."

Local Government Code 402.053 states that property with proper construction and maintenance of wholly sufficient and privately owned drainage, property held and maintained in natural state, and a subdivided lot without a structure "shall be" exempted from such a district. [state law, scroll down to 402.053]

State, county, municipal, and school district property, and property owned by a religious organization that is exempt from taxation "may be" exempt.

The city code [see link at bottom of page] exempts the entities named by state law as those that "shall be" exempted, and includes property to which a mandatory exemption applies or which is exempt under federal law, including federal and state agencies and a public institution of higher education.

"We may fall under the 'may,'" said HACEP Executive Director Gerald Cichon.

EPWU Assistant General Manager Nick Costanzo said that he was not aware of specific concerns from HACEP.

"We'll work with customers as they contact us but the Housing Authority hasn’t contacted us in that regard," he said.

When asked whether entities are opting out, he said, "it's too early to tell right now. The bills are going out and we're meeting with customers if they have questions."

He said the utility was "going by state statutes" and trying to spread the cost among its customers.

"It's kind of like a balloon. If you squeeze one area of it someone else has to pick up the slack," Costanzo said.

The issue of the stormwater district fees comes up at a time when new water rates go into effect.

The El Paso Times reported Tuesday (March 25, 2008) morning that "The average water and sewage bill increase -- which totals about $3.59 a month -- doesn't factor in the $2.38 to $9.50 a month charge for improvements to the city's storm-water drainage system that also will go into effect this month."

A news release from EPWU explaining the stormwater district stated that "Non-residential properties will be charged according to the amount of impervious area, including paved parking lots and other areas that are impermeable to rainwater. For each unit, or 2,000 square feet, the charge will be $4.85. For example, a 4,000-square-foot office building with a 2,000-square-foot paved parking lot will pay $14.55 monthly." [news release]

The release states that "Last July, City Council created a separate utility to manage stormwater drainage and moved the responsibility for stormwater management and control to the El Paso Water Utilities Public Service Board. The Board will begin managing the new stormwater utility on March 1, 2008.

"To fund stormwater needs, the utility will assess a monthly charge to each property in the city, except those exempt by state statute, based on the amount of stormwater runoff from the property. The fee for residential property is based on Central Appraisal District information. Non-residential properties are measured to determine their impervious areas."

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