The Town of Watertown owes the City of Waterbury at least $30 million in unpaid water and sewage bills. That’s the result of a years-long legal battle between the two entities.
The legal dispute began in 2018 after Waterbury raised the sewer and water rates for Watertown and the other towns they supply to. Watertown has argued they were in the right to negotiate that rate hike, and according to court documents, they instead continued charging their residents the lower rate.
The court decided Waterbury acted within their rights by raising the prices years ago. Now, the court has ordered Watertown to pay Waterbury back.
The Connecticut Appellate Court affirmed a lower court’s decision this summer, but Watertown appealed it. This week, the Connecticut Supreme Court denied that appeal.
“The court emphasized that this case did not involve individual property owners refusing to pay their bills but rather a conscious decision by the Town of Watertown to underpay the rates set by Waterbury for all users within its borders after June 30, 2018,” Waterbury Mayor Paul Pernerewski said in June, after the Appellate Court affirmed their decision.
In response to the court's decision, Watertown Town Manager Mark Raimo said the town is disappointed, but respects the outcome of the case.
“It continues to believe its position on Waterbury’s water and sewer rates was consistent with Connecticut law,” Raimo said.
On Tuesday, Watertown residents will be deciding on a $30 million bond vote applied to water and sewer, which would pay Waterbury back per the court’s order.
“The referendum on Tuesday is important because the Town now faces a final, enforceable obligation that must be satisfied. The referendum would authorize bond financing, which—if approved and issued—could replace the currently accruing judgment interest with a lower bond interest rate, thereby reducing ongoing interest accrual,” Raimo said.
“If bonding reduces interest costs, the Town will then evaluate the most responsible next steps to protect ratepayers and ensure fair, sustainable utility services," he continued.
If passed, Watertown data shows price increases would vary by water consumption. According to town documents, the average household using 50,000 gallons of water a year would add on roughly $294.50 a year to their water bill.
Town data shows that if the vote gets turned down, the $30 million will still need to be paid and the debt would accumulate interest at $4.3 million a year.
"They made these decisions on their own so why should we be punished?” Maria Poveromo, a Watertown resident, asked. “This is a bad situation. It’s really not fair.”
Poveromo tells us on top of the rising costs of seemingly everything else, this rate hike is unwelcome, and it makes her worry for the future of people looking to buy homes in the area.
“I’m very upset and afraid I might not be able to continue owning my home,” she said.
Others said they'd rather approve Tuesday’s bond over watching the debt grow.
"It's a catch-22. Everybody's back is against the wall,” Edna Brewer, of Watertown, said. “It's going to have to be fixed anyway, at the end of the day."
"It's only fair. That's how I look at it. It's been a long time coming,” another Watertown resident, who didn’t want to share her name, said.
In a statement to NBC Connecticut, Pernerewski said he is thankful the Supreme Court upheld the decision of Connecticut’s Appellate and Superior courts in determining that Waterbury acted reasonably and lawfully.
“We look forward to a final resolution of the unpaid bills in the near future so we may all move forward,” he said.