PELL CITY — A St. Clair County Circuit Court judge ruled that ordinances passed by the City Council establishing sewer impact and water capital recovery fees are legal. “There are certainly other ways that the city could have gone about raising the money necessary to operate its system; however, that is not the issue,” Judge Jim Hill wrote in his Nov. 10 order. “It is not the place of the court to second guess or critique the City Council acting as a legislative body as long as the council does not act in a manner that is arbitrary or capricious. If it does not, then the action that it takes must be upheld.”
Hill found that the ordinances enacted by the City Council were valid, and that the charges are fees to be used for future development of the city’s water and sewer requirements.
“… the city did not act in a manner that is arbitrary or capricious and consequently the attack on these ordinances is due to be denied and the ordinances upheld,” Hill wrote in his order.
The Pell City Council initially approved an ordinance establishing sewer impact and water recovery fees in April 2007. The following month, the St. Clair County Home Builders Association, along with two local builders, filed a lawsuit against the city for enacting new sewer impact and water capital recovery fees.
A few months after the ordinance establishing sewer impact and water recovery fees was passed, the council amended the ordinance for multi-unit structures.
The lawsuit alleged the city was not authorized by the state Legislature to assess sewer impact and water capital recovery fees, that fees were unconstitutional and injured builders, new homeowners and those seeking to relocate in Pell City.
City officials contended they were on solid legal ground before passing the ordinance establishing the fees.
“We’re pleased with Judge Hill’s decision,” city attorney Robert Minor said. “He carefully listened to the testimony and rendered a well-reasoned opinion.”
Currently, money collected from sewer impact and water capital recovery fees are kept in a separate city account.
“Money will continue to be held until this case reaches its final disposition,” Minor said.
It is uncertain whether the plaintiffs will appeal the ruling.
Jesse Evans III, with the law firm of Haskell, Slaughter, Young & Ridker LLC, who represents the home builders association, was not immediately available for comment.
