The Herald-Zeitung

A district judge ruled Friday that the City of New Braunfels must pay back nearly $1 million to local river outfitters.

After first ruling the city’s river management fee unconstitutional in 2007, visiting District Judge Ron Carr ordered Friday that the city refund more than $800,000 in fees paid by outfitters from 2001 to 2007, as well as nearly $150,000 in attorneys fees and more than $13,000 in court costs.

“We are pleased with the outcome,” said David Earl, an attorney who represented three outfitters in the lawsuit — Texas Tubes, Rockin’ R’ River Rides and Corner Tubes. “The goal was not to hurt the city. The goal was to make things right, and we feel that’s been done.”

The river management fee, or “tube tax,” forces outfitters to charge $1.25 for each person who rents a tube or uses an outfitter shuttle. Outfitters then give that money to the city at the end of every month to pay for services such as trash collection and law enforcement on the rivers.

A group of outfitters filed a lawsuit in May 2007 to have the tube tax thrown out. It won, with Carr ruling in September 2007 that it was an unconstitutional occupation tax and that the city had not properly complied with its charter when it was first enacted.

Until Friday, the money paid by the outfitters has been stuck in legal limbo.

Now, three of the original five outfitters who filed suit in 2007 — Earl said two others dropped out because of cost concerns — could be getting their money back.

City officials said Friday they are still weighing their legal options after the defeat in district court.

“Obviously, the city’s first reaction is to consider appealing the order,” said Mayor Bruce Boyer. “But that’s what the court decided and, pending the appeals process, this is something we will have to live with and plan for.”

City Manager Mike Morrison said now that Carr has ruled, the city could also appeal his original decision to have the river management fee thrown out.

“If another judge rules that it’s constitutional, then no money would be owed to the outfitters,” he said.

The city implemented a new river management fee in 2008, one that adhered to the city charter. It has since collected around $200,000 annually, and Morrison said outfitters should continue to pay their share to maintain the rivers.

“We continue to believe that the businesses who directly benefit from our services should pay some of the cost,” he said. “We respectfully disagree with the judge’s ruling, and will be recommending to council that we move forward with the appeals process.”

The city owes:

Rockin’ R River Rides: $419,591.75

Texas Tubes: $145,944

Corner Tubes: $247,910.50

The city also must pay $148,836 in attorney fees and $13,410.05 in court costs.