Mayor's Office

MAYOR ADDRESSES WATER FEES IMPACTING SMALL BUSINESS

Ordinance alters payment schedule for capacity fees

NASHVILLE, Tenn. (April 25, 2008) -

Mayor Karl Dean today proposed a solution for business owners negatively impacted by water capacity fees charged for new service connections by Metro Water Services.

The ordinance submitted by the Mayor’s Office allows capacity fees to be paid in installments over time, removing an unintended barrier to small business development in Nashville. The capacity fees offset the effect of increased demand on the water system infrastructure.

“Nashville has seen tremendous redevelopment in our urban neighborhoods in the past few years. While these fees serve a clear purpose, they have unintentionally prevented some entrepreneurs from being able to open a small business in these areas. This ordinance is a way for us to help those business owners and make sure our economic growth continues,” Mayor Karl Dean said.

Currently under the Metropolitan Code, customers establishing a new water service connection are required to pay the capacity fee in full before a permit is issued. The ordinance allows the directors of Metro Water and the Finance Department to establish a partial payment agreement with commercial customers, where payment would be made in 36 equal monthly installments.

“This legislation is clearly a good first step toward correcting an unintended consequence that has negatively affected small businesses. The mayor should be applauded for taking this step and his future willingness to look at water rates and fees overall,” Erik Cole, Council member and chair of the Budget and Finance Committee, said.

For media inquiries contact:
Janel Lacy
(615) 862-6020
janel.lacy@nashville.gov