For the past few meetings, the Catasauqua Borough Council has debated assessing tapping fees and recreation fees to developers who are rehabilitating old, abandoned structures in the borough.

At a Sept. 2 council meeting, Councilwoman Deb Mellish explained some of the problems with making a determination on how to apply fees.

Tapping fees and recreation fees are simply a tax on developers. The logic to assess these fees, particularly for an older property, is difficult to address.

As explained by Mellish and Borough Manager Eugene Goldfeder, tapping fees were charged when the first wastewater treatment plant was installed in the 1950s.

"At that time, businesses were charged a flat fee of $100 and residences were charged $75. The price was based on the number of connections," said Mellish.

According to Goldfeder, some municipalities later used the fees to discourage growth or because of some other agenda. In the 1980s, the state required that tapping fees be justified in some manner. An elaborate system of calculations was setup to equate the value of the wastewater treatment's physical assets to businesses and homeowners.

Based on the initial charges made in the 1950s, there is some doubt that the intent of the fee was to pay for the entire cost of the plant.

"These treatment plants are financed with municipal revenue bonds, so the cost may have been there to cover some of the upfront payments until the plant was operating," said one developer who wishes to remain anonymous because of potential political ramifications.

The costs associated with revenue bonds are included in the rates charged to customers.

No one can verify the intent of the initial tapping fee because the government leaders who implemented them are no longer living.

Catasauqua has a rule requiring anyone who makes property improvements that impact the wastewater treatment plant to pay a tapping fee. The rule makes it difficult to determine if a fee was paid on the property for its present use.

The owner of a property at 208 Front St. asked council to waive the tapping fee. According to Mellish, that property was likely a single-family house in 1950. The new owners want to add a rental unit. Council voted unanimously to charge the new owners a tapping and recreational fee for the additional unit.

Another developer at 417 Front St. is converting an old boarding house into a four-unit apartment complex with a business on the first floor. "We can't determine from the records if the use in 1950 is consistent with the proposed use," Mellish said in part of her report to council.

No decision was reached in the second case.

The fees represent a significant expense for developers. Both of the new owners were unaware that this fee would be assessed when they purchased the property. If it takes the borough months to determine what fees are owed, developers may be reluctant to move forward with a renovation project when costs are not identified.

Although tapping fees are designed to pay for increased wastewater treatment plant capacity, borough Director of Public Works Jeff MacHose pointed out the existing plant has excess capacity, more than enough to handle planned improvements in the borough and improvements planned for surrounding communities served by Catasauqua.

In other news, council will restrict parking on Front Street for Fest-O-Fall celebration on Oct. 4, from 11 a.m. to 5 p.m. Council also granted permission for the hayride at Fest-O-Fall to pass through the Iron Works property on Front Street.

"It will give residents some idea of the potential for the property," Councilwoman Christine Weaver said.