This past January 12th. I posted a blog entitled “The Mattabassett District Costly Venture”.
I quoted a newspaper account that the District’s Board Chairman had sent a letter to the Federal Government requesting financial grants for a sum of $80,000,000 for the district’s denitrification project which is mandated by the state’s environmental protection agency.
I continued by stating that the district’s charter ALLOWS the directors to enter into agreements for the acceptance of waste waters from abutting areas and also pointed out that the district has the authority to issue bonds for the cost of the proposed project.
I pointed out in the event that no state or federal funds are made available to the district for this project an $80,000,000 bond might be issued and I based this cost by using a 4% interest rate costing the district $116,348,220 with New Britain’s share being $81,443,754 representing an annual cost of $6,786.979 per year for a twenty year period.
At this week’s Common Council meeting of the City of New Britain the city’s bonding attorney informed the Council that the current interest rate for bonds is approximately 6%.
Shockingly, that would mean the above figures would simply change by using a multiplier of all the aforementioned figures 1.5 times to get the new figures for the six percent change. New Britain’s annual cost would then change to $10,180,468.50 per year for the twenty year period.
I certainly hope that the Mayor Stewart’s administration of our city is fervently working in lobbying both the state and the federal agencies for public grants in order to provide all or a large portion of the funds needed to comply with the state’s DEP mandates at the sewage treatment plant.