Hurley Recommends Increase

In Sewer Use Charges

By Andrew Gorosko

Public Works Director Fred Hurley is recommending to the Water Pollution Control Authority (WPCA) that the town increase its sewer-use rates by five percent to cover depreciation costs for the municipal sewer system.

Current financial figures indicate there is a balance between expenses and revenue for the sewer system, but there is a shortfall in depreciation costs, according to Mr Hurley.

As public works director, Mr Hurley oversees the operation of the sewer system, which serves the borough, Taunton Lake North, Sandy Hook Center, Nunnawauk Meadows, Fairfield Hills, and Garner Correctional Institution. The $34 million sewer system began operation in September 1997.

The town has not been funding sewer system depreciation costs since the sewer system started operation, Mr Hurley said. Such depreciation costs concern the decrease in value of property through wear, deterioration, and obsolescence.

Increasing the sewer-use fees by 5 percent would serve to prevent from happening in Newtown what recently happened in Waterbury, Mr Hurley said. The City of Waterbury recently doubled its sewer- use charges based on an immediate need to improve its sewer system, resulting in widespread public protests over the steep sewer-use rate hike.

Some components of the Newtown sewer system are designed to last 50 years or more, such as sewer piping and the concrete structures at the Commerce Road sewage treatment plant. However, other components of the system, such as mechanical equipment, are designed to last 25, 15, or 5 years, depending upon the equipment.

A five percent hike in the sewer-use rate would increase an annual typical $300 residential sewer bill to $315. Sewer bills are issued quarterly. So, a $75 quarterly sewer bill would increase to $78.75.

A five percent rate hike would be applied evenly to all classes of customers.

In the future, based on anticipated improved state wastewater cleansing standards, the town may need to improve its equipment at the sewage treatment plant to remove higher percentages of nitrogen and phosphorus from wastewater, Mr Hurley said. Increasing the local sewer-use charges would provide money for such future equipment improvements, he said.

Increasing the sewer-use rates by five percent would provide roughly $35,000 in new revenue annually, Mr Hurley said. Annual sewer system revenues are about $700,000. About $300,000 of that amount is produced by municipal accounts, and $400,000 is generated by state accounts.

Mr Hurley said the town has not raised its sewer-use charges since the sewage treatment plant went into operation three years ago.

Mr Hurley said he expects the WPCA will wait until the sewer system’s financial books for the 1999-2000 fiscal year are audited before possibly increasing sewer-use charges. State law requires that the WPCA conduct a public hearing before raising its rates.

Mr Hurley said increased sewer-use charges might go into effect within six months.

Sewer-use charges are based on how much wastewater sewer users send down their drains. Sewer bills are calculated based on water meter readings.

Sewer-use charges are separate from sewer assessment charges, through which sewer users and all town taxpayers are paying off the capital costs of constructing the sewer system.