With the city’s new waste water treatment plant near completion, city leaders are frantically trying to determine how the Water Pollution Control Authority will make the first $2.46 million loan payment in 2012.
One tax board member is concerned there won’t be enough money.
“What concerns me the most is defaulting on these payments,” Ed Norman said during the WPCA meeting last Wednesday. “Everyone is surprised we’re not collecting money toward those payments.”
That was originally the plan.
In 2008, the city approved the project and started construction on the new $53 million plant. The WPCA will owe about $2.46 million a year for the next 20 years.
At the time, the WPCA proposed an extra, flat fee for each sewer hook-up in Ansonia to appear on bills starting in 2008.
The plan was to phase in the fee so that by the time the loan came due in 2012, there would be enough money stored up to start making the payments.
But the extra charge was never added to the sewer bills.
Too Much Money
The additional sewer fee would have added about $100 per unit to the sewer bills, a designation that would include churches, office buildings and individual apartments.
The fees were scheduled to increase as the loan came due, according to a presentation given by the WPCA in January 2008. (Article continues after the document.)
But those payments would have been too much money for struggling homeowners, said Acting Mayor Stephen Blume.
Residents came out and complained at three public hearings on the topic, Blume said.
“The numbers were so high,” Blume said. “We’ve been trying to get money from several different avenues. So we didn’t bill and we looked at other avenues to reduce this debt.”
‘This Is Terrible’
Blume said those other avenues — such as trying to get stimulus money or other state grants — have not panned out.
The city was even set to send Mayor James DellaVolpe to Washington D.C. to talk with U.S. Senator Christopher Dodd about the situation, before DellaVolpe had to undergo heart surgery last month.
“The WPCA has not been sleeping. This takes up my whole day late into the night. We are working hard to resolve this,” Blume said. “This is terrible. We were forced to do this. We don’t want a new plant. We were not given any support by the state.”
The new plant was mandated by the state because the old plant was outdated and didn’t comply with updated environmental standards. As of last week, construction was 71 percent complete, according to the WPCA.
The city is looking at other payment possibilities that would decrease the burden on sewer users. One possible solution is as paying the loan through an increase in the city’s tax rate. Residents are already looking at an 8 percent tax increase under a proposed budget for next year.
Blume said that is only one of several ideas that have been thrown around.
A decision needs to be made by the end of the month, Blume said, so that bills can start going out in time to collect the money.
“We’re not going to default. We’re going to make the payments,” Blume said. “It’s just a matter of dollars and cents. We are exploring every avenue we can.”
What a great way to do business; start a project, and when it’s time to pay for it, try to figure out where to get the money from. I’ll have to remember that the next time I’m putting on an addition or renovating a room. The standard practice of Ansonia begging for money from the state and federal government isn’t panning out so Plan B is to rake the taxpayers over the coals for $400-$500 a year for the next 20 years. Don’t forget the 8.4% tax increase the Board of Aldermen has approved. What a prime example of gross negligence, mismanagement and incompetence. Congratulations Ansonia for having such a fine team in place to run the city. I’m sure they’d all like to hear from you now. Why don’t you call them and send them your love?
Oh here goes my Tax rate again. WHY did I buy a house in ansonia. If your thinking of moving to ansonia DON’T.
And what gets me is the citizens of Ansonia keep voting their buddies in office over and over again! Time to vote the good old boys out! Get someone in with a business degree to run the town!
I echo the Blogger above. As any reader may find the below relevant or not to judge.
Moving from Ansonia some time ago was best for many members of my extended family as well.
I noticed even CT Magazine posted that town dead last for aesthetics in its latest City review….SAD.
In this latest banking practice to forecast and provide a safe-guard for future use of money I can only see what I recall were the DEMO-crats running that town for years and much of the time through brother-hood would never dream of pointing fingers at one who was at fault. Sounds like love for the city is turning into job-burnout or the “worry-about-it-tomorrow” theory.
Good call on fishing for state grants as that will certainly RAISE A STATE AUDIT for that town which you and I know will simply proof-out whose heads will role and be forced to leave town leadership rolls.
I had to do a little research on the town since I left and found these interesting bits on the net by others that left not to long ago…..( Band-aiding Ansonia many issues is childs play, fixing them is for the talented by most accounts )
1) http://www.tripadvisor.com/ShowUserReviews-g29152-r13074296-Ansonia_Connecticut.html
2) Unfortunately I am told many of theses hazards still exist in town, dragging down property values throughout the city …..http://www.youtube.com/watch?v=zfdsYTHaT9o
2001/02 Fountain Hose pumper $384,113.00
2002/03 Webster hose Squad 9 $267,767.00
2005/06 Charters Hose pumper $335,970.00
2005/06 Eagle Hose Ladder 7 $773,800.00
Accountability system $100,000.00
Grant for AFD Air packs/radio system $450,000.00
Hmm… I wonder why the city is in such financial despair, it was said before and I will say it again, when you have an entire city run by crooks and firefighters…this is what happens. STOP RE-ELECTING THEM!!!!
Cronyism and nepotism have polluted that city. Anyone that is a friend of a city employee of any type immediately becomes aware of this. Every door you open and every corner you turn it slaps you right in the face. The worst part is, it will never change. It is not what you know, it is who you know.