Saturday, January 31, 2009

The Mattabassett District's Bonding Cost An Alarming Increase!


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.

12 comments:

Anonymous said...

Maybe they can get former Colonial Realty's Candelori to sell private investments in Mattabassett.

Anonymous said...

I know that whenever Frank Smith has given an estimate for cost matters he has been very accurate in the past.

With that being said I am extremely alarmed with his estimate of how much the city taxpayers will have to support for the addition to the Mattabassett sewage plant in Cromwell, Ct.

I certainly hope that Mayor Stewart will work with his co-owners of the district’s leadership of the other two towns in obtaining Federal or State grants for this planned operation.

I cannot afford thinking what this massive added cost to my taxes if funding for this project is not provided with grants and is placed directly onto the backs of the taxpayers.

It may cause a grand exile of residents to elsewhere.

Anonymous said...

The proposed cost placed onto the Taxpayers in the event no grants are available is JUST TOO much.

Dr. Candelori slow down!

Anonymous said...

Let's not forget that much of this cost is to allow for Middletown to enter the Mattabassett District (due to the drastic increase in flow that will cause) and a long time ago Middletown's mayor refused to pay for their fair share of the cost and even refused to pay the cost of having a consultant provide an estimate of what the cost would be for his city to enter the district.

For some reason, these guys seem to feel that the taxpayers of New Britain, Cromwell and Berlin should foot the bill for Middletown's crap while they get a free ride.

Remember that as you watch your tax bills skyrocket in the years to come.

Anonymous said...

New Britain Residents tell your state representatives to get the DEP to provide the funding for the Mattabaseett crap house in order to meet mandates of the state's DEP.

Anonymous said...

Maybe they should start the ball rolling by getting Mr. Colonial Realty off the Board. When is his term up ?

Anonymous said...

If I remember correctly, all they need to do is stop accepting sludge from outside towns, a process that they are grossly undercharging the outside towns for, which is resulting in New Britain taxpayers subsidizing sludge for other towns. According to Frank Smith, if they stopped accepting this sludge, the volume of the plant would be so drastically reduced that the upgrades needed would be minimal.

So once again, why does the cost of handling crap for other towns get stuck to the taxpayers in New Britain? Tell Dr. Candelori to stop taking this crap from other towns and reduce the need for these upgrades.

The way this situation just continues unchecked makes me wonder who is profiting from the money that is coming in from these outside sources, especially since it isn't enough to cover the real costs.

Anonymous said...

You can't have it both ways.

If New Britain is responsible for 70% of the costs they are then entitled to 70% of the sludge REVENUES.

New Britain was getting healthy checks from Mattabassett when they processed sludge from other communities.

The state mandates denitrification THEY SHOULD PAY FOR IT. Not the towns. THESE UNFUNDED MANDATES HAVE TO STOP!

No more low interest loans. The federal government provides "clean water" GRANTS to each state. This state turns around skims money off the top to pay for their bloated budgets then offers towns low interest loans for this FREE money.

Liberals aren't just parked on the New Britain city council. They control the LOB in Hartford also.

Anonymous said...

Frank how many Mattabessett District members from New Britain were proposed by the Republican minority?

Once again anything those liberals on the council touch literally turns to crap!

Anonymous said...

With Candelori's history for tax evasion, he would be a shoe-in for a seat on Obama's cabinet! Which cabinet position is in charge of the bug house?

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Anonymous said...

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