TPA Sends Letter to Georgia State Legislators on Fee Gouging

States across the nation are facing financial challenges when it comes to funding and budgets. Many local governments have a legitimate interest in issues such as zoning and public safety but at the same time it is important to clarify between helping to fix a problem, and making it worse by expanding the size of an already bloated government. TPA recently sent a letter to represenatives in the state of Georgia regarding wireless infrastructure, transparency, and common sense when it comes to spending by local governments. TPA recognizes the legitimate concern to cover costs for permitting reviews, but it should be for the actual cost and this should be a transparent process. 

Read the full letter below:

November 6, 2013

Georgia State Legislature

Atlanta, Georgia

Dear Senator:

The Taxpayers Protection Alliance (TPA) looks for waste, fraud, and abuse at all levels of government. One area that has been underreported is when local governments abuse their power to generate income through fees.  There are legitimate fees but taxpayers and consumers should be concerned when “experts” are retained to increase fee revenue.  This fee gouging is happening across Georgia with cell phone tower site fees, which could ultimately result in higher cell phone bills  thus hurting consumers.  States and localities should find ways to help consumers, not hurt them.

Local governments have a legitimate interest in issues such as zoning and public safety.  But they should not abuse those interests to expand the size of government.  Right now in Georgia, fees for permitting cell towers and wireless infrastructure range from $400 in some jurisdictions to nearly $10,000 in others.  Some local jurisdictions are hiring outside consultants to “review” permits and wireless infrastructure to increase the fee income for these jurisdictions.  These consultants are hired on a contingency basis where they are paid from the fee revenue they identify.  This arrangement is an obvious conflict of interest.  Some jurisdictions that have used these consultants have found that any additional fee revenue was consumed by the consultants in their fees and have ended this practice.  Local governments have a legitimate need to cover their costs for permitting reviews, but it should be no more than their actual costs and this should be a transparent and open process.

Consumers are being harmed because unnecessary costs are being added to the cost of providing services, which in turn is being passed along to consumers.  So if a County adds $2 million to the cost of providing or enhancing mobile broadband, that cost is being recovered by the company providing the service.  And it is being spread across the consumers of the state.  Unnecessary government harms everyone.  Government should perform its necessary services to protect the taxpayers, but it should not engage in flagrant expansionist practices to fund its operations.

Any legislation to address this problem should prohibit local governments from charging excessive zoning or permit fees; require government-owned sites to charge “market rates” for land and/or buildings for tower and antenna placements; and establish a rigid timeline for decisions by local governments on new tower applications.

Consumers and businesses deserve price and regulatory certainty from their state and local governments.

Sincerely,

David Williams

President

Taxpayers Protection Alliance