Hot Springs council rejects $96,000 waiver request for Cascade Hills impact fees

The Hot Springs City Council voted to deny a request from Fall River Health Services to waive water and sewer impact fees for the Cascade Hills subdivision, a proposal that would have waived 48 water and 48 sewer impact fees at $1,000 per connection — a potential $96,000 reduction in required fees.

Jeremy Schulz, administrator and CEO of Fall River Health Services, told the council the waiver was intended to keep the lots affordable for buyers. "Our goal is to keep these lots as affordable as we possibly can," he said, adding that without the waiver the cost of a lot would rise by about $2,000.

Council discussion focused on the fiscal implications and precedent. Several council members expressed concern that waiving the impact fee — which is intended to fund future system capacity and maintenance — would shift costs to existing customers and could undermine the city's case when seeking outside funding. One councilor noted the city had recently been turned down for loan forgiveness for part of the wastewater project in part because the city was not charging sufficient sewer rates.

Councilors also discussed alternatives Schulz suggested, including delaying payment, spreading the fee over time or pursuing grants. Staff noted the request, as presented to council, was for the immediate waiver of the impact fee; other creative financing or a new application could be brought later.

When the council called the roll on the motion to waive the impact fees, the result was 1 yes, 6 no, and 1 abstention; the motion failed. The council did not approve any immediate fee waiver, and members asked staff and the applicant to consider other approaches or future requests if additional information or grant opportunities emerge.