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10/24/2017 04:45 PMAfter a successful referendum, the water main extension project to Mulberry Point, Tuttles Point, and Long Cove took another step forward on Oct. 16. Board of Selectmen (BOS), sought public input on a water main extension ordinance that will determine how all homes are assessed once the main is built. The board unanimously approved the ordinance.
The water main extension project was approved at referendum on May 31 with 1,004 “Yes” votes to 122 “No” votes. The water main extension is expected to stretch over 2.4 miles and cost approximately $3.4 million, servicing 145 homes in Mulberry Point, Tuttles Point, and Long Cove. Prior to the referendum, the town announced that, of the 145 homes in the area that could be served by the water main, 83 percent of residents signed formal commitment letters to connect with the main, well exceeding the necessary commitment level and pushing the project forward.
Residents in the service area will pay all expenses for the project, including initial soft costs. In January, the town signed a service agreement with the Connecticut Water Company (CWC) that outlined the financial rate of contribution from CWC. The rate of contribution from CWC is dependent upon the percentage of the 145 homeowners in the area who commit to the project. With an 83 percent commitment rate demonstrated by residents who sent the water company signed commitment letters and financial deposits, CWC will contribute $1.5 million.
After CWC’s contribution, the remaining cost of the project, $1.9 million, will not be distributed town-wide, but will be distributed among homeowners who are direct beneficiaries of the water main extension. The town has applied for Drinking Water Revolving Funds, a low-interest loan from the State of Connecticut that in 2012 became available for the project, contingent upon a successful referendum. With the 83 percent contribution rate, Attorney Norb Church said each household will likely be assessed for approximately $13,161, which can be paid back over 20 years at a two percent interest rate.
“At some point when the water main is done, everything is built, and all of the expenses are read, that then will be the opportunity to determine what the assessment will be for each home that is served by the water main,” said Church. “The proposed ordinance allows a statutory scheme for how assessments are to occur…The BOS will adopt rules by which assessments are determined. The purpose of this ordinance is to adopt that rule.”
Church said the ordinance also sets out rules for those who are not a part of the initial service agreement, but who might chose to hook up to the main at a later date. Church said if someone does connect later, that homeowner will be charged the same amount as 145 residents in the current service area. However, where money from that payment goes is up to the sitting BOS.
“At least for the moment it is anticipated that under that scenario the money would go into the general fund,” he said. “It may be down the road a little bit there may be some kind of a program where if there are later payments that come in, that money might be earmarked and spent in a particular area such as road improvements and so forth.”
Residents asked questions about those later payments as for now it seems as though the money would not go to reducing the loans for the 145 homeowners. Resident George Vrba said the money should come back to the local residents.
“It’s my belief that anyone who connects in the future to this pipeline… should be assessed the same that we have been assessed and that money should be collected and our burden to pay off our loan should be reduced by these connections,” he said. “I don’t think it is fair that this goes in the general fund, which is not for the benefit of those who pay for this…This money should come to us in order to reduce the loan.”
First Selectman Joe Mazza said the ordinance can be changed at a future date to specify where the money should go.
“We have had some discussion about this,” he said. “A future board could establish something like a dedicated road fund with the money future hook ups would have to pay to repair these roads in the future.”