Public Hearing Set For Proposed Changes To New Canaan Sewer Fees

From The Town of New Canaan:The Board of Finance of the Town of New Canaan will hold a public hearing on Tuesday, May 14, 2019 at 7:00 p.m. at the Town Hall Meeting Room, Town Hall, 77 Main Street, New Canaan.

The Board of Finance proposes to change the way the Town charges users of the sewer system from the current ad valorem sewer tax to a tiered, flat-fee system that will be more equitable for homeowners and commercial property owners. Below is the Notice of Public Hearing as published in the New Canaan Advertiser on May 2, 2019, which provides details on the proposed new tiered, flat-rate sewer usage fees.

Board of Finance Chairman Todd Lavieri said “The proposed new system of tiered, flat- rate fees is intended to change our decades old method of charging for sewer use based upon the assessed value of real estate properties in the Sewer District and a sewer tax mill rate. Under the old system, business and home owners that had increases in their property valuations would have seen an automatic increase in their Sewer Tax bill next month. Based on the current proposal put forth to our committee, the majority of the current residential users will see a decrease in their annual bills. The average residential usage fee will decrease approximately 13%. The average usage fee for existing commercial sewer users will decline by $39.09, with 55% increasing and 45% decreasing primarily based on an evaluation of relative water usage.”

Most other towns and cities in Connecticut have changed from sewer taxes to user fees that take into account the estimated usage of the waste water treatment plant. The new sewer fees that are proposed recognize the type and relative size of structures, current sewer tax levels and estimated amount of water consumption (for commercial properties only). First Selectman Kevin Moynihan noted that, “The current sewer tax produces some unreasonably large sewer tax bills for some residents. The Town initially looked at changing to a user fee system based directly on estimated annual water consumption (as provided by Aquarion Water Company) but found that such a consumption-based approach also produced some extreme levels of fees. About half of the towns in Connecticut use a flat-fee sewer fee system that is right for their particular community sewer users.”

The proposed new flat-rate fees will apply to schools and municipal properties, non- profits and churches for the first time, as the Town had previously exempted such property owners from the sewer tax. Also, it is proposed that the new flat-rate fees will not apply to properties in the sewer district that are not yet connected to the sewer system or vacant land, as the current sewer tax does, but will apply once a structure is connected to the sewer system. For further information, contact: Tiger Mann, Public Works Director, 203-594-3056, or Sandra Dennies, Chief Financial Officer, 203-594-3024.

NOTICE OF PUBLIC HEARING ON CHANGE IN SEWER CHARGES

NOTICE is hereby given that the Board of Finance of the Town of New Canaan will hold a Public Hearing on Tuesday, May 14, 2019 at 7:00 P.M. in the Town Hall Meeting Room to hear public comment on proposed Sewer Fee rates for residents who are connected to the New Canaan Sewer System.

The Board of Finance is proposing to change the current ad valorem sewer tax to a tiered, flat-rate Sewer Fee system. For Residential sewer users, the new flat rates will be phased in over three years for FY 2020, FY 2021 and FY 2022, as follows, subject to annual increases after FY2022 as may be required due to increases in the Sewer System annual operating expense budget:

Residential: Year 1 Year 2 Year 3
Quartile #1: $ 235 $ 250 $ 275
Quartile #2: $ 350 $ 370 $ 385
Quartile #3: $ 550 $ 570 $ 585
Quartile #4: $ 935 $ 835 $ 735

Quartile #1 applies to single family homes and condos whose current sewer tax bill is $300 or less.
Quartile #2 applies to single family homes and condos whose current sewer tax bill is $300 to $499.99.
Quartile #3 applies to single family homes and condos whose current sewer tax bill is $500 to $899.99.
Quartile #4 applies to single family homes and condos whose current sewer tax bill is $900 and over.

Apartments, co-op units and multi-family units are charged as Quartile #2 sewer users for each apartment unit.

For Commercial sewer users, the new flat rates will be as follows for FY 2020 and subsequent years, subject to annual increases as may be required due to increases in the Sewer System annual operating expense budget:

Commercial:
Quintile #1: $ 750
Quintile #2: $ 1,250
Quintile #3: $ 2,500
Quintile #4: $ 3,500
Quintile #5: $ 5,000

Quintiles for Commercial properties are based on estimated annual water consumption as measured by Aquarion Water Company and considering such factors as estimated average daily occupancy and the nature of activities conducted on the premises, such as food preparation or other commercial operations.

Commercial users include commercial properties, churches and other non-profits, and schools and municipal buildings.

Vacant land located within the New Canaan Sewer Taxing District will not be charged until such property has been connected to the Sewer System.