(Update, Jan. 18, 2013: According to Derby tax board meeting minutes from Dec. 17, 2012, the WPCA project came in under budget and the money was never loaned. Click here to download a copy of the minutes)
The city’s legislative body and a separate board that controls the city’s purse strings both agreed Thursday to loan the embattled Derby Water Pollution Control Authority $190,000.
The loan should not hit taxpayers in their pockets — assuming the WPCA pays the loan back by June 27, 2013, the end of the city’s fiscal year.
John Saccu, a volunteer member of the WPCA, said the money is needed to replenish his board’s financial reserves.
The money has been depleted due to a number of emergency repairs to Derby’s decrepit sewer lines and pump stations.
In addition, poor planning on the city’s behalf concerning the reconstruction of Hawthorne Avenue has drained the WPCA of money, according to Saccu and Carolyn Duhaime, who serves on both the tax board and the WPCA.
The WPCA didn’t have enough time to plan or set aside money to replace old sewers under Hawthorne Avenue, Saccu said. The project essentially moved to quickly, Saccu said.
As the reconstruction and repaving project continued from downtown Derby along Hawthorne Avenue toward Derby Neck Library, the WPCA discovered some of the 100-year-old pipes needed to be replaced — as opposed to relined, which is a quicker, cheaper fix.
Instead of having to go back and tear up brand new Hawthorne Avenue at a later date, the WPCA has been spending money to replace the old sewer pipes — and dealing with emergency repairs, such as doling out $65,000 for a grinder pump at the Roosevelt Drive pump station.
Saccu told the Aldermen and the tax board during a joint meeting Thursday in City Hall that the WPCA needed to borrow $190,000 keep their reserves healthy and ensure any future infrastructure emergencies can be handled.
Ron Sill, president of the Board of Aldermen, said the WPCA must do a better job planning its projects and expenses.
Most members on the Board of Aldermen and the tax board weren’t happy about spending the money.
Aldermen Bev Moran noted the WPCA just instituted hefty bill increases on residents — a move that generated a ton of ill will in Derby, especially among business owners.
The Aldermen and Derby City Treasurer Keith McLiverty put a condition on the $190,000 loan saying the WPCA has to give a status update on the money in April.
Jim Butler, chairman of the tax board, went a step further and said his board wants monthly reports on how the money is being used.
Saccu said the WPCA hopes to not use the full amount of the loan and expects to be able to pay the money back before the fiscal year closes.
