Monday, January 12, 2009
In a statement to The Hartford Courant,today, The Chairman of the Mattabassett Sewer District indicated that he sent a letter to the Federal Government requesting financial grants for a sum of Eighty Million dollars for the denitirfication project that is mandated by the state department of environmental protection in order to accept the Middletown waste water system into the District.
As a former member of the Board of Directors I recognize that in the event,state or federal funding is not available for this project, the district can still accept Middletown as a contractual member as authorized by its charter.
The District’s charter ALLOWS the Directors the authority to enter into agreements for the acceptance of waste waters from abutting areas. That was done years ago with certain areas of Middletown, The Hartford MDC for parts of Newington, and Farmington without obtaining or consulting the owner towns of the District, New Britain, Berlin, and Cromwell. Therefore, the board can accept the additional Middletown influx to its plant without consulting with or obtaining approvals from each owner.
Therefore, the Board of Directors can proceed by utilizing its authority granted by the State Legislature to issue bonds for the cost of this project in the event no state or federal grants are made available to the district.
A $80,000,000 project cost bonded for a period of twenty years at an assume rate of 4% would cost a total of $116,348,220 to be shared by the owners of the district and if in the event Middletown does not share in this cost formula New Britain’s share would come to an approximate 70% a sum of $81,443,754 or an annual cost of $6,786.979 for this bond financing in addition to its share of the ongoing operating cost.
I strongly urge that the legislative authorities of the three owner towns of the District to get involved before the Board of Directors of the Mattabassett District issue such a bond creating a tax liability to all the residents the District serves.
Posted by Frank Smith at 12.1.09