City of El Paso, Texas v. Joseph C. Pickett

CourtTexas Court of Appeals, 8th District (El Paso)
DecidedJune 9, 2026
Docket08-24-00405-CV
StatusPublished

This text of City of El Paso, Texas v. Joseph C. Pickett (City of El Paso, Texas v. Joseph C. Pickett) is published on Counsel Stack Legal Research, covering Texas Court of Appeals, 8th District (El Paso) primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of El Paso, Texas v. Joseph C. Pickett, (Tex. Ct. App. 2026).

Opinions

COURT OF APPEALS EIGHTH DISTRICT OF TEXAS EL PASO, TEXAS ———————————— No. 08-24-00405-CV ————————————

City of El Paso, Texas, Appellant v. Joseph C. Pickett, Appellee

On Appeal from the 384th District Court El Paso County, Texas Trial Court No. 2020DCV3514

O PI NI O N This case is a dispute over the legality of a fee charged by the City of El Paso’s

Environmental Services Department to its residential customers. Appellee, Joseph C. Pickett

asserted, and the trial court agreed, that the City did not have the authority to charge the fee and

that it was an illegal tax. The City appeals the trial court’s declaratory and monetary judgment in

favor of Pickett. For the reasons below, we affirm. I. BACKGROUND

The Environmental Services Department (ESD) of the City of El Paso provides solid waste

disposal services to the residents of El Paso.1

For its weekly residential trash pick-up and its bi-weekly recycling pick-up, the ESD

charges what is called the “grey trash bin” fee, which is currently $19 per month. It also charges

an “environmental fee” of $5 per month which funds environmental nuisance abatement projects

such as graffiti removal and vector control. Those charges are not at issue in this appeal.

A. Adoption of franchise fee

In 2014, the El Paso City Council passed a budget resolution authorizing the ESD “to

charge a franchise fee in the amount determined by the City Council for the wear and tear on the

City’s right[s]-of-way due to the use of City sanitation vehicles engaged in the collection,

transportation and disposal [of] municipal solid waste to an authorized municipal solid waste

facility.” For the fiscal years 2015 to 2018, the City Council set the environmental franchise fee

(EFF) at $1.10 per month per residence. This amount was based on 5% of the ESD’s operational

revenue for projects related to solid waste disposal divided by the number of customers. The EFF

of $1.10 per month generated approximately $2.5 million per year.

In 2018, the City adopted an ordinance codifying the 2014 budget resolution. El Paso, Tex.,

Code of Ordinances No. 18829 (2018). The ordinance amended the El Paso City Code to allow

the ESD:

to charge the established fee as a related cost to providing the solid waste disposal utility [] due to the wear and tear on the city’s rights-of-way caused by the use of the city sanitation vehicles in providing the utility service, and that the reasonable return generated by the franchise fee be transferred to the city general fund to be appropriated by the city council as deemed appropriate.

1 The ESD also provides numerous other services “relating to areas of environmental concerns” such as operating the City’s landfills, providing vector control services, monitoring air quality, graffiti removal, street sweeping, and maintaining medians. El Paso, Tex., Code of Ordinances, ch. 9.04, § 9.04.010 (2021).

2 El Paso, Tex., Code of Ordinances, ch. 9.04, § 9.04.530E (2018).

In 2019, the City raised the EFF from $1.10 per month to $4.00 per month per residence.

It claims that the fee was increased after consideration of a study published in 1960 that compared

the impact of different vehicles on a road. According to the study, multi-axle, heavy vehicles like

the ESD garbage trucks have almost 9,000 times the impact on a road than the average sedan.

After the 2019 fee increase, the fee generated annual revenue of $8.9 million. The City’s

Budget Resolution for that year stated that “$7,000,000 of the [EFF] will be used for residential

street maintenance to include all related equipment and materials.” The remaining $1.9 million

was placed into the City’s general fund.

The next year, 2020, the City raised the fee again, this time from $4.00 to $6.00 per month

per residence. The City did not conduct another study or analysis before increasing the fee. At the

new rate, ESD collected between $13.1 million and $13.7 million in fees for years 2020 to 2023.

The City’s budget resolution for 2020 allocated $6.6 million of the collected fees for residential

street maintenance and $4 million for Fire Department vehicles and major capital equipment for

the Police Department. The budget resolutions for years 2021 to 2023 do not make specific

allocations, but only state that “[EFF] will be used to support the General Fund expenditures of

the Streets and Maintenance department.”

B. Pickett’s lawsuit

Pickett, an El Paso resident who was being charged the monthly franchise fee, filed the

underlying suit in October 2020. He sought a declaratory judgment that the EFF was an

impermissible tax, constituted an unlawful taking, and violated the Texas Constitution, the Health

3 & Safety Code, and the City’s own ordinances.2 He also sought actual damages, attorney’s fees,

costs, and interest.

After a bench trial, the trial court granted judgment for Pickett. The trial court entered

findings of fact and conclusions of law as follows:

• The EFF “is unreasonable, excessive, and/or intended to raise revenue making it a tax[.]” • “The [EFF] constitutes an impermissible tax, is an unconstitutional taking, and/or is not authorized by law. The ordinance is invalid as written and has not been followed by [the City].”

The final judgment contained the following additional findings:

• Pickett rebutted the presumption that the ordinance was valid and the City failed to “provide a valid legal justification” for the EFF. • The EFF is a tax because it was intended to and did raise “unrestricted funds for general use[.]” • Franchise fees can only be charged to public utilities and the ESD is not a public utility because it is an internal branch of the City. • In the alternative, “the City exceeded any lawful authority it may possess, both in the imposition of the EFF and in the administration of EFF funds.” • The unlawful tax, or in the alternative, unreasonable fee was an unconstitutional taking of Pickett’s property. • Pickett paid the EFF under protest. The declaratory judgment awarded a refund to Pickett of the fees he paid, attorney’s fees

in the amount of $33,107.82 and an additional $37,500 if the City appealed.

C. Issues on appeal

The City asserts six issues on appeal. In Issue One, the City argues that the EFF is valid

because it has inherent and statutory authority to charge it. In Issue Two, it contends that the EFF

is not a tax. In Issue Three, the City contends that it had the authority to spend the money raised

by the EFF in the manner that it did. Issue Four challenges the trial court’s subject matter

2 This case was also the subject of an interlocutory appeal in which we affirmed the trial court’s denial of the City’s plea to the jurisdiction. City of El Paso v. Pickett, 662 S.W.3d 592 (Tex. App.—El Paso 2022, no pet.).

4 jurisdiction to award a refund of the fees that Pickett paid. Issues Five and Six challenge the award

of attorney’s fees and argue that the case should be remanded to determine if Pickett should be

ordered to pay the City’s attorney’s fees.

II. ANALYSIS

A. Fee v. tax (Issue Two)

The City, as a home-rule municipality, has the “full power of local self-government.”

Tex. Loc. Gov’t Code § 51.072; see also City of Laredo v. Laredo Merchants Ass’n, 550 S.W.3d

586, 592–93 (Tex. 2018). The broad authority of home-rule cities is limited only by the Texas

Constitution’s prohibition on charters or ordinances “inconsistent with the Constitution of the

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City of El Paso, Texas v. Joseph C. Pickett, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-el-paso-texas-v-joseph-c-pickett-txctapp8-2026.