ANSWERS: 2
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call a lawyer and ask, most will talk to you for free the first time. also were you notify this was going to happen before hand or did this just show up on bill? as this may play into your paying or not, for any thing like this most places must give plenty of advanced notice that they plan on doing something of this nature.
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The water company does have the right to levy an impact fee as long as it went through the right channels, either by commission approval, citizen vote or other avenue. They can demand the money of you but check your regions housing laws. If there are children living in the residence, many municipalities don't allow water or electricity to be turned off without going through a process. Impact fees are typically one-time fees. I'd be very surprised if this was a monthly fee. Give the water company a call and see if they can spread the fees over the course of several months' bills. Good luck.
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