There is good news to report for Derby businesses owners who saw their sewer bills rise to jaw-dropping levels last month.
The Derby Water Pollution Control Authority, the volunteer group that put the massive increases into place, are tearing up the spending plan that sent the bills soaring.
In fact, some people — including residential users — who already paid their sewer bills could be due refunds, said John Saccu, WPCA member.
It looks like the WPCA could replace the new, inflated sewer rates with last year’s rates.
The rate increases were discussed during a WPCA workshop Thursday in Derby City Hall.
However, since it was a workshop, the purpose was to simply discuss the problem and brainstorm solutions.
The WPCA Thursday did not act on their plans. Another WPCA meeting is scheduled for Aug. 15.
The WPCA also plans to send a communication to Derby residents and businesses as a head’s up on what’s happening.
Many of those business owners saw their sewer bills double.
And many of those businesses are desperately needed in cash-strapped Derby, where public schools are struggling yet growing more expensive each year as the tax burden shifts to middle class families because the number of commercial properties is shrinking.
According to a report in the New Haven Register last month, the owner of Archie Moore’s, a restaurant on Derby’s Elizabeth Street, saw his sewer bill almost double from $6,900 last year to $13,000 this year — with no change in the restaurant’s sewer use.
Michael Paine, the director of operations for 24 Wendy’s restaurants, said his sewer bill in Derby in the past 30 months has increased from about $1,800 to $22,000.
That is not a typo.
“I’d like somebody to explain to me how that happened,” Paine said during Thursday’s workshop.
The WPCA will be looking specifically into the Wendy’s situation since the increase is so out-of-whack. Watch the video above to see a brief exchange between Paine and Saccu.
Thomas Harbinson, a Shelton resident who owns IDA International on Roosevelt Drive in Derby, saw his bill increase 49.9 percent, even though his water consumption decreased by 8 percent.
The dramatic increase caused Harbinson, an experienced municipal volunteer in Shelton, to examine the WCPA’s 2012 – 2013 budget.
Some of the things Harbinson found:
- The WPCA operating budget increased 45 percent.
- The WPCA was stuffing capital items such as large equipment purchases into a single budget instead of spreading out those payments over years.
- Commercial property owners in the new budget were charged $6 per gallon while residential users in Derby paid 74 cents per gallon.
- During the budget’s formation, the WPCA met at different times and on different days, potentially making the process difficult to follow for anyone interested.
- The Shelton WPCA budget is $733,121 less than Derby’s WPCA budget, even though Shelton has 24,000 users compared to Derby’s 11,300.
At Thursday’s workshop, John Saccu filled in for chairman Leo DiSorbo, who was not present.
Saccu issued the mea culpa merchants had been hoping for.
“Let me just preface my comments by saying the increase is ridiculous,” Saccu said.
The WPCA member then basically indicated his board screwed up when it came to the sewer rate increase and use calculations.
“I don’t think this was done with the due diligence that it probably should have been,” Saccu said.
The WPCA rate increase and use formula came from bad data, a flawed process and they were under pressure to get bills out, Saccu indicated. In addition, Saccu said personnel changes in Derby City Hall hampered his board’s ability to communicate.
The personnel change is, presumably, a reference to the fact the city did not have a finance director during the most recent budget cycle. Click here for more on that issue.
Saccu said the WPCA will now work to make things right.
“I’m not making excuses. These are explanations. I don’t think what we did was justified,” he said.
Later in the WPCA workshop, Saccu cautioned the moves do not necessarily mean everyone’s sewer bill will remain flat — but the process that birthed the bills will be re-examined.
“I’m quite embarrassed that this situation occurred,” Saccu said.
Derby City Treasurer Keith McLiverty said his office will work with the WPCA to remove capital items from the authority’s operating budget and find a cheaper way to finance those items.
McLiverty pointed out the tax burden in Derby is switching to residential properties because the number of commercial and industrial properties are decreasing. Large rate increases for sewer use will continue to drive businesses out, McLiverty said.
“We’re all in this boat together, guys,” he said. “I commend you for what you’re doing and I commend John Saccu for acknowledging the problem.”
Ron Sill, president of the Derby Board of Aldermen, urged the WPCA to throw out the rate increases and to simply carry over last year’s rates.
Mayor Anthony Staffieri said the WCPA is taking the right steps because the increase is just too high.
“The board has listened to the people and they’ve agreed to review their structure. I think they got a good grasp on how to change some things around,” the mayor said.
Alderman Barbara DeGennaro requested that the WPCA treat all the bill payers the same, particularly residential users.
“I ask that you look at the whole picture and try to treat everyone as fairly as you can,” she said.
