Tax Collector Takes Over Sewer-Use Billing

By Andrew Gorosko

To simplify and improve the accuracy of municipal sewer-use billing, the town tax collector’s office has taken over the town’s sewer-use billing and collection duties from a private contractor, according to Fred Hurley, the town’s public works director.

The tax collector’s office January 19 issued new sewer-use bills for the past three months of sewer usage. The town issues quarterly sewer-use bills to about 900 residential, commercial, and industrial sewer accounts in the Borough, Taunton Pond North, and Sandy Hook Center.

Sewer-use bills are separate from sewer assessment charges. Sewer assessment charges, which are levied annually, are payable across 20 years. Through those sewer assessments, the town recovers the capital costs of sewer system construction.

The sewer-use bills issued by the tax collector have a different appearance than the sewer-use bills which formerly were issued by US Filter. US Filter operates the town’s sewage treatment plant on Commerce Road. The town had had US Filter do sewer billing and collection for the town. But that company specializes in sewage plant operations, not sewer billing, Mr Hurley noted.

The newly issued sewer-use bills are simpler than the previous bills. They more clearly explain the nature of the bill and its calculation than did the bills previously issued by US Filter, Mr Hurley said. The bill carries the title “sanitary sewer use charge.” The instructions on how to pay the bill are clearer, Mr Hurley said.

Having the town collect its sewer-use fees will make for more direct municipal control of sewer payments, Mr Hurley said.

Some previous sewer-use bills contained mistakes concerning names, addresses, billing amounts, and the ownership of properties. After such problems were detected, they were corrected, Mr Hurley said.

“It’s been a whole series of administrative issues,” Mr Hurley said of past problems with sewer-use bills.

The sewer-use bills are based on water usage bills from United Water, the firm which operates a public water supply in the town center. 

The town hopes that having the tax collector’s office handle sewer-use billing makes the billing process simpler and more accurate, Mr Hurley said. It is expected that the need for address changes on  sewer-use bills will be detected sooner with the town now handling the billing, he said.

Having the tax collector’s office run sewer-use billing for the town will put such work in the hands of people who are very familiar with the area, and will mean that billing discrepancies are found more rapidly, Mr Hurley said. The billing changeover also may improve sewer-use bill collection rates, he said.

The decision to change the sewer-use billing to the tax collector’s office was a joint decision of the Water Pollution Control Authority (WPCA), the town finance director, and the selectmen, Mr Hurley said.

A typical residential sewer user pays an about $75 quarterly sewer-use bill, reflecting an annual $300 in sewer-use charges.

The sewer system went into operation in September 1997. It was constructed to correct groundwater pollution problems caused by failing septic systems.

Rate Hike

WPCA members are considering increasing sewer-use rates, Mr Hurley said.

A specific proposal from the WPCA to increase those rates is expected in the coming months, he said.

Last September, Mr Hurley recommended to the WPCA that the town increase its sewer-use rates by five percent to cover depreciation costs for the municipal sewer system. Financial figures indicate there is a balance between expenses and revenue for the sewer system, but there is a shortfall in depreciation costs, according to Mr Hurley.

The town has not been funding sewer system depreciation. Such depreciation costs concern the decrease in value of property through wear, deterioration, and obsolescence.

Some components of the Newtown sewer system are designed to last 50 years or more, such as sewer piping and the concrete structures at the Commerce Road sewage treatment plant. However, other components of the system, such as mechanical equipment, are designed to last 25, 15, or 5 years, depending upon the equipment.

A five-percent hike in the sewer-use rate would increase the typical quarterly $75 residential sewer bill to $78.75.

Mr Hurley said the WPCA would be reviewing financial figures in proposing a sewer-use rate hike. A public hearing would be held on a proposed rate hike.