Friday, July 23, 1999
City may levy fees on builders
Middletown looks at costs of water, sewer
BY JANET C. WETZEL
The Cincinnati Enquirer
MIDDLETOWN — Developers in Middletown may have to pay their share of infrastructure costs by sometime next year.
The city is conducting a study to determine the feasibility of establishing tap-in fees on new developments to help pay for infrastructure work.
Officials think Middletown is lagging behind other communities in imposing such fees, and could be overlooking an important funding source, especially in potential development hot spots such as east of Interstate 75.
The proposed fees could come in the form of a package — to help cover water and sewer tap-ins, any road improvements required to handle traffic from the new development, and possibly storm water retention projects, said David Duritsch, assistant city engineer. Or they could end up as simple water and sewer tap-in fees, he said.
The estimated 1,000 acres east of I-75, which the city expects to be developed over the next few years, was a catalyst for the fee study, Mr. Duritsch said.
The projected cost for extensive road widenings and improvements in that area is $13 million, plus about $2 million for sewers.
“The east end has the greatest potential for growth, and we have to be prepared,” Mr. Duritsch said. “Growth needs to pay for growth. We hope to find a balance — to make it fair and keep it simple. That's not easy to do.”
The issue arose in Middletown this week when city staff proposed the idea to city commissioners during a meeting. City Manager Ron Olson said the first step would be to look at what other communities do.
Officials and commissioners agree it is essential not to price the city out of the development market.
“I wouldn't want people to go down the road because our tap-in fees are too high,” Commissioner Paul Nenni said at the meeting. He suggested the city consider giving incentives or reduced fees to developments that would bring jobs into the city.
Other area communities are already levying water and sewer tap-in fees.
Monroe, a swiftly growing community straddling Butler and Warren counties, in November added a water tap-in fee for new developments to help pay for future capital improvements for the water system. That adds as much as $1,200 for a single-family home in a newly developed area, and industrial development fees are $1,800 to nearly $80,000, depending on size.
Early this year, the city added fees for review, inspection and processing site plans for subdivision and street-improvement plats.
“That didn't slow development at all, not in the least,” said Jay Stewart, assistant city manager. “Developers expect it because they pay it just about everywhere else.”
Mason City Council recently increased tap-in fees for water and sewer for new homes. For water in that booming Warren County community, a $2,500 fee is charged for water line expansion, $40 for inspection and $200 for a meter fee. For sewer, fees are $2,500 for expansion and $40 for inspection.
To date, in most of Middletown, the only fees charged are to cover the actual cost of making the tap-ins — usually about $200.
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