OSWPCA: Sunshine / Letter from Michael E. Cronin, Jr., Town Counsel, 25Mar11

Text facsimile


201 MAIN STREET - P. 0. BOX 454
(860) 388-5728
FAX (860) 388-4981

March 25, 2011

Mr. Joel R. Anderson
13 George Dr.
Old Saybrook, Ct. 06475

Re: Wastewater Management District

Dear Mr. Anderson:

I have your letter of March 24, 2011, along with a copy of your letter to First Selectman, Michael Pace, dated March 15, 2011 which he had forwarded to me.

As indicated in his letter to you, I strongly urge you to meet with Mr. Pace at your earliest convenience so that he can explain to you the rather complex financing arrangements the Town was required to do in order to enact the Sewer Avoidance Program.

The language that was set forth in the Town Meeting was a Resolution which was drafted by the Town of Old Saybrook Bond Counsel. It was done in a manner which would legally allow the Town of Old Saybrook to receive the full funding of the project under the Federal Clean Water Act. A basic concept of this Act is that in order to receive the total amount of funds, the legislative body of the Town (in Old Saybrook, the Town Meeting) must appropriate the full amount. As the project proceeds, and the monies from the Federal government are received, they are broken down into a formula in which 25% of the funds are an outright grant to the Town which needs not to be re-paid, and 25& is advanced on the basis of a loan which must be re-paid at 2% on a 20-year basis. The remaining 50% will be the primary obligation of the individual property owner who receives the benefit of the on-site upgrade of that property owner's property. This 50% will be in the nature of a lien against the property owner's property, and will be repaid by the property owner at the 2% rate over the same 20-year period. If, for whatever reason, a property owner neglects or fails to pay his, her, or its share of the project, then the Town of Old Saybrook (and its taxpayers) guarantee and are required to make that payment. It is because of this that it was necessary for the Town to appropriate the full amount of funding for the project which was, I believe, $42,171,200.00.

Very truly yours, 
(signed "M") 
     Michael E. Cronin, Jr.


c.c. Hon. Michael Pace, First Selectman, Town of Old Saybrook,
302 Main St., Old Saybrook, Ct. 06475