An appellate court affirmed the ruling, Waterbury officials say. Watertown must pay the city $18.8 for unpaid services and $15 million more in accrued interest.
WATERBURY, Conn. — Waterbury officials are claiming a landmark legal victory Friday, after the Connecticut Appellate Court ruled that Watertown owes the city over $34 million.
The sum stems from unpaid water and sewer services, as well as additional penalty fees. As of April 2023, Watertown owed Waterbury $18.8 million.
Now, factoring in the additional principal and interest that has accrued since that time, the amount owed totals over $34 million.
The Appellate Court found that Waterbury acted within its legal rights by setting “just and equitable” rates for Watertown’s use of the city’s water and sewer systems.
According to the court, Waterbury had the authority to bring legal action against Watertown to recover unpaid fees. The court confirmed that the rates charged to Watertown were reasonable and appropriately applied.
Waterbury officials note in a release that the court rejected Watertown’s argument that it should pay a lower “wholesale” rate.
Members of the court pointed out that Watertown was free to contract with private water providers such as Connecticut Water Company or Aquarion Water Company, but those alternatives would have been “substantially more expensive” than Waterbury’s rates.
The court reportedly acknowledged that the case did not involve individual property owners not paying their bills. Instead, the court noted that Watertown made a conscious decision to underpay the rates set by Waterbury for all users within its borders on June 30, 2018.
Watertown has until June 30 to petition the Connecticut Supreme Court for permission to pursue a further appeal.
Waterbury Mayor Paul Pernerewski was ecstatic at the outcome, calling it a tremendous win for the city and its taxpayers.
“It affirms our right to set fair and reasonable rates for the services we provide, ensuring that our residents are not left to subsidize the obligations of others,” Pernerewski said.
The mayor extended his gratitude to Corporation Counsel Angela Juliani and Attorneys Joe Mengacci, Dan Foster and Kevin Daly, who handled the trial and appeal.
“Their dedication and expertise led to a successful outcome in this case,” Pernerewski said. “This decision not only validates our position, it protects the financial interests of our city and its residents for years to come."
Watertown Town Manager Mark Raimo responded to a request for comment from FOX61 Friday evening, noting that more information regarding the town's response should be announced next week.
"The town is currently reviewing the decision in consultation with legal counsel to fully assess its implications and identify the available legal and operational options moving forward," Raimo said. "The Watertown Town Council intends to convene during the week of June 9, 2025, to deliberate on the ruling and determine the town's course of action in response to the decision."
Raimo said that additional updates will be provided following that meeting.
Dalton Zbierski is a digital content producer and writer at FOX61 News. He can be reached at [email protected].
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