LAFAYETTE, La. — A Lafayette Parish resident is raising concerns about a proposed fee that would add a capital improvements fee of more than $5,400 to the cost of new water connections in parts of south Lafayette Parish, arguing the charge could affect future development in the area.
John Cagle said the proposed capital improvements fee of $5,471.27 per new water connection is too costly for developers and future property owners.
“In this economy, first off, it's not sustainable. We just can't do it,” Cagle said.
The proposed fee is part of a resolution approved by the Board of Commissioners of Lafayette Parish Waterworks District South. According to the resolution, the district does not currently have the capacity to accommodate additional water service requests in portions of its service area without risking pressure issues that could lead to boil advisories during periods of high demand.
District engineers estimated nearly $4.9 million in water system improvements are needed to increase capacity. The resolution states the improvements would allow the district to accommodate up to 898 additional residential units.
Cagle argues the fee goes beyond what was originally contemplated when a moratorium on new water service was implemented in 2024.
“It's my attorney's opinion, from the Attorney General's opinion, that they can charge the new developers to put in the infrastructure. But when it comes across the board to everybody, it is an illegal tax,” Cagle said.
According to correspondence submitted to the Louisiana Attorney General's Office, five developers seeking approval for a combined 1,074 lots were at the center of discussions surrounding the district's capacity concerns and the water service moratorium.
Under the proposed policy, applicants seeking new water service would be required to pay the capital improvements fee before receiving approval for service or a binding "will serve" letter.
Cagle said he has concerns about how the money would be used and whether the moratorium was justified.
“They can't give us any explanation of what it's going to cover, what it's for. It's going to be held in an escrow account. In the resolution, it's open-ended!” he said.
Cagle said he has submitted multiple public records requests seeking documents and data related to the district's decision-making process.
He also believes the proposal has received little public attention. An online petition asking the board to lift the moratorium for all district residents except the five developers referenced in the Attorney General correspondence has collected nearly 140 signatures.
“Now we're getting hit with an impact fee, knew nothing about this. So we go from $1,575 to $7,000 and some change. It just doesn't make sense,” Cagle said.
The proposed fee would be deposited into an escrow account and could be adjusted if construction costs change, according to the resolution.
KATC reached out to Lafayette Parish Waterworks District South for comment, but the district's office manager declined to comment.