Pueblo Mayor proposes $1.5k tap fee for new developments in Pueblo West
PUEBLO COUNTY, Colo. (KRDO) -- Through a proposed intergovernmental agreement (IGA) between the City of Pueblo and the Pueblo West Metro Water District, new developers in Pueblo West would have to pay the City of Pueblo $1,500 per water tap added.
On January 18, the Pueblo Board of Water Works unanimously agreed to lease water to Pueblo West amid a water shortage there that has stopped new development in recent months. The lease agreement provides 1,500-acre feet of water to Pueblo West for almost $1.2 million annually.
"Pueblo's water, its owned by the citizens of the city of Pueblo. It's being used by Pueblo West," Mayor Nick Gradisar said. "For every house that's built in Pueblo West rather than Pueblo, Pueblo loses $5,900 in sales tax on the materials that are incorporated into that house if the purchase price is $400,000."
Gradisar told KRDO the proposed IGA is necessary because the City of Pueblo will lose sales tax revenue if the development in Pueblo West continues to outpace the city itself. However, he doesn't view them as a competitor.
"Not really a competitor. Last year they had 428 building permits for residences. The City of Pueblo had 197, so to the extent that we can move some of those houses to the City of Pueblo, we're going to benefit," Gradisar said.
Christy Fidura, a Pueblo West resident, says the tap fee is "unethical" and is not supported by the majority of contractors in Pueblo County.
"The Mayor is overstepping that authority. He's overstepping his boundaries and he's demanding money to generate revenue for the city that does nothing for Pueblo West whatsoever," Fidura said.
The lease agreement is not the first time the City of Pueblo has leased water to another city in Colorado. In 1997, the city agreed to lease 5,000-acre feet of water to Aurora for 15 years. That lease agreement ends in 2023. The lease agreement with Aurora doesn't include a tap fee of any kind.
"It's an unprecedented deal because this is the first time the Board of Water Works has leased water to another municipality or another entity in Pueblo County," Gradisar said.
It's a deal Fidura believes sets precedence for why this IGA should not be signed by the Pueblo West Metro Water District.
"As a county, Pueblo should be supportive of each other and, I think that this is causing division that's unnecessary just like this $1,500 fee," Fidura said.
If the IGA is passed by the Pueblo City Council on Feb. 14, the agreement must be signed by Pueblo West Metro Water District President Doug Proal.
KRDO reached out to Proal for an interview regarding the proposed IGA. However, he sent a statement saying, "Although the Metro District is paying the Pueblo Board of Water Works as per the water lease, the proposed IGA would allow for a collaborative partnership between the City and the Metro District for using the City’s water asset," Proal said.
He added that any tap fee agreement would not come at the expense of Pueblo West residents.
"Continued growth in Pueblo West will come at the expense of the builders and developers, not our current residents," Proal said. "The board is adamant we don’t want to sustain growth by increasing water rates for current residents but will work with rate increases as we did years before keeping residents in mind."
The Pueblo West Metro Water District is currently working to obtain new sources of water. Proal tells KRDO they have been working diligently with Chaffee County to add the Hill Ranch water to their portfolio.
