Ruidoso, New Mexico

Multi-Facility Impact Fee Study
   

Duncan Associates was originally retained by the Village of Ruidoso in 1996 to develop impact fees for water and sewer lines and regional wastewater treatment, and to evaluate the feasibility of road impact fees. While most of the major roadway system was already in place, there were a number of intersection improvements needed to accommodate anticipated growth that lacked a dedicated source of funding. However, the identified road-related capital needs proved to be too small to justify a fee. Most of the sewer capital needs were related to existing deficiencies (inflow and infiltration due to cracked

and deteriorating lines), since the system of sewer interceptors that would be needed to serve build-out was already largely in place. Consequently, the sewer fees were structured as recoupment fees, and were based on the depreciated replacement cost of the existing interceptor system. Ruidoso and the neighboring village of Ruidoso Downs jointly operate a regional wastewater treatment plant and joint-use interceptor, and costs are shared based on their share of the wastewater flows to the plant. The regional wastewater treatment fees were based on this same proportion. In 2005, the firm was retained to update the fees. One of the changes made was to charge residential fees on a per unit basis, and to vary the fees by the size of the unit, rather than base the fees on meter size.