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Churches Feel Sewer Assessment Rate Is Unfair
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B Y K AAREN V ALENTA
Residents, business owners and representatives of several churches within the
town's new $34-million sewer district expressed concern over their proposed
assessments at a public hearing last week.
The Thursday hearing was called by the Water Pollution Control Authority
(WPCA) to hear public comment on the proposed residential and non-residential
sewer benefit assessments, which will go into effect this fall.
Some of those attending, such as representatives of St John's Episcopal Church
in Sandy Hook, felt the assessments will be burdensome.
"Your present rate of assessment will put us out of business," said Bruce
Moulthrop, a member of St John's Vestry.
St John's assessment, $34,000 in a 20-year loan at 2 percent interest, will
cost the church's congregation $2,103 a year. "Our current roster of 19 active
families cannot possibly bear [this] financial burden," the vestry said in a
letter submitted to the WPCA.
Mr Moulthrop said the church, although small, has a tradition of providing
valuable community outreach services, including use as the site of the Faith
Food Pantry and the meeting place for numerous Alcoholic Anonymous groups.
Under the proposed assessment schedule, the owners of each of the 691
residential properties in the sewer district would pay $9,900, or about $600 a
year if repaid over 20 years at the federally subsidized interest rate of two
percent.
Non-residential properties, including churches and public buildings, were
assessed at 90 percent of the estimated benefit that the property will get by
having sewers instead of septic tanks.
The churches whose properties are in the sewer district include St Rose of
Lima, which was assessed at $227,395, for an annual payment of $13,907;
Trinity, $106,799 or $6,532 a year; United Methodist, $95,064, or $5,814 a
year; Newtown Congregational, $42,439 for the church on West Street, $2,569 a
year, and $59,545 or $3,3642 a year for 41-A Main Street (which is being sold
to Newtown Savings Bank).
Main Street resident Jim Gaston, an attorney who spoke on behalf of Trinity
Church, said the state Department of Environmental Protection completed a
survey in January 1995 of 14 towns and one eight-town district that had
installed sewers within the past seven years.
"Seven of the 15 treated churches like residences," he said. "Four others gave
churches special consideration, one exempted churches entirely, another
assessed according to zone, one treated all properties the same, and only one
classified churches as commercial like you are doing here."
Mr Gaston said a copy of the report was sent to Peter Alagna, WPCA chairman, a
week before the hearing. Other WPCA members were unaware of the report. The
meeting was chaired by Dick Zang, WPCA vice chairman, because Mr Alagna was
delayed. It was announced later that Mr Alagna has resigned (see related
story) and Mr Zang will be the new chairman.
About 200 people attended the public hearing at which John Valente of the
consulting firm Lesher-Glendinning Municipal Services of East Haven explained
how his firm calculated the assessments. The 691 homes will produce $6.8
million of the $34 million needed to pay for the sewer system based on a flat
$9,900 for each.
Mr Valente said it was the WPCA's choice to use $9,900 for the residential
assessment. He actually had calculated the benefit as $6,900 to $39,500 per
house, with 89 percent at the level of $9,900 or above. For comparison
purposes, he used 672 similar residences in other towns that installed sewers,
he said, adding that "residential properties were considered to increase about
four to five percent in value because of sewers."
Similar comparisons of non-residential properties indicated the values will
increase from 10 to 32 percent, he said. For non-residential properties, such
factors as the value of the property (as determined by property tax
assessment), the square footage and its use - commercial, office, retail -
were used to calculate the sewer benefit.
For churches, Mr Valente said he looked at 16 churches and schools in other
communities that had been sold and retrofitted for commercial use over the
past 15 years.
The Rev Kathleen Adams-Shepherd of Trinity Church objected to this method,
pointing out that the church has been in Newtown for hundreds of years and
isn't likely to close up shop. If the church has to pay $7,000 a year for an
assessment as non-residential, it may be forced to stop giving money to town
social agencies like Newtown Youth Services and the Faith Food Pantry, she
said.
"It won't help to put a sign out front saying, `We now have sewers - please
join us on Sunday morning,'" she added.
The WPCA members said one reason the churches weren't exempted from the sewer
assessments or given a lower rate was because it can be difficult to define
exactly what a church is. "Any group can call itself a church," Mr Alagna
said.
Mr Gaston suggested the WPCA use the definition used by the US Internal
Revenue Service.
Douglas Nebinger of Forecast International on Commerce Road said his property
tax assessment was lowered by $400,000 because it abuts the wastewater
treatment plant. Now the sewer assessment indicates his property value has
increased by $88,000 because of the sewer line in front of it, he said.
Someone Has To Pay
WPCA member Alan Shepard said the sewer district includes 820 residential and
non-residential properties, of which about 140 to 150 are non-residential.
Part of the project is being funded with $7.7 million from Clean Water Fund
grants channeled through the state.
"But the project costs $34 million - so you can see the numbers don't work,"
Mr Shepard said. "That's why the town is kicking in to pay for the difference
[through general taxation]. The money has to come from somewhere."
In addition to the assessment, property owners must pay a $50 connection fee
and have their own hookup done by a contractor. The town will supply a list of
contractors who are licensed, bonded, insured, and interested in doing the
installations. Hookups will be inspected by the town.
Public Works Director Fred Hurley said different areas of town will be
staggered for hookups. Notices will be sent out starting this month. When
notice is received, property owners will be given four months to hook up, with
delays allowed for winter weather.
"I anticipate it will take about a year for all hookups to be completed," Mr
Hurley said.
Properties that are in the sewer district also will pay a user fee based on
water usage. The formula is based on the town's cost to operate the system,
which is then apportioned according to the water used by each individual
property.
Some residential properties that are more than 300 feet from the sewer main
may apply for a deferment not to hook up. The property owner still must pay
the sewer assessment, however.
Property owners who object to their assessments may have individual hearings
with the WPCA beginning next month. If they are still not satisfied, they may
appeal in court.
One resident, who did not give his name at the meeting, said there should be a
totally separate board of appeals made up of members not on the WPCA.
The WPCA said it would take all comments made at the public hearing into
consideration before taking final action. In the case of non-residential
assessment of churches it was decided that the WPCA will discuss this further
possibly with Town Council David Groggins and Finance Director Ben Spragg
present.
