At some point between May 12 and May 22, the Water Pollution Control Authority proposed budget was changed by adding $5.6 million as an expense for land acquisition, and by adding $5.6 million as miscellaneous revenue for land acquisition, according to Town Attorney Tim Bishop.
The $5.6 million represents 52% of the originally proposed expense budget, and the budget changes could be interpreted to indicate thoughts by town executives regarding town-owned land that the WPC facilities sit on.
Despite those considerations the mayor’s office, which develops and manages the WPCA budget separate from the town budget, did not make sure that the 10 members of the authority, who oversee the WPCA budget, learned of the change to the WPCA budget.
The lack of notification is described as a problem with “the process” of distributing information to the water authority members — a clerical error in town hall.
The WPCA members are also elected members of the Town Council, and it was Councilwoman Stephanie Philips who came across the WPCA budget change shortly before the July 28 Town Council meeting. At that meeting Philips raised the question about when and why the WPCA budget was changed.
The WPC Authority set new sewer fees for Stratford residents and businesses on June 2 with a 13% increase over last year. The budget sheets that they had for reference at that time did not show the $5.6 million projected expense for land acquisition, nor did they show the $3 million projected miscellaneous revenue from the WPCA reserve fund for land acquisition or the $2.6 million in projected miscellaneous revenue from a loan for land acquisition.
There has been informal discussion around town hall about WPCA possibly buying from the town of Stratford the land on which its facilities sit, according to WPCA Chairman Peter Massey and Town Council Chairman Joe Kubic. The WPCA has not formally taken up the possibility of buying land from the town, and the Town Council has not formally taken up the possibility of selling the land to the WPCA.
Why the budget change
The town’s operating budget for the current fiscal year includes $4.5 million in revenue that is projected to come from selling town-owned land. According to Finance Director Susan Collier on Aug. 4, she suggested to Chief Administrative Officer Steven Nocera that the budgets be revised to show where that $4.5 million in revenue might come from. The decision was made to cover the $4.5 million by showing a possible sale of land to WPCA.
Unknown effect
It is not known what discussion might have ensued among WPCA members if they were aware that the town formally put land acquisition into the WPCA budget or how their vote on new sewer rates might have been affected with the knowledge of the possible land acquisition to be paid for potentially by WPCA reserve funds and a loan.
The budgeted WPCA bottom line did not change with the addition of the $5.6 million expense offset by the $5.6 million in revenue.
After meeting with Chief Administrative Officer Steven Nocera on Aug. 11, Town Attorney Tim Bishop confirmed that the budget changes “never made it to the WPCA” members.
Nocera declined to reply directly to The Star regarding distribution of information to WPCA or about the date when the land acquisition line items were added to the WPCA budget, which he manages, according to Collier.
“Everyone seems to agree that (the budget showing the land acquisition line items) should have gone to them,” Bishop wrote to The Star. “Most, including Steve and myself, thought that it had gone to them …. Nobody seems to have any idea why it didn’t go to them.”
Collier said, “I agree the changes should have been shown to the Authority.”
Philips said, “It boggles my mind that no one can make sure we get documents for something so critical.”
The significance of this, Philips said, is that “If it was not caught, it would have provided the basis for the town to claim that the WPCA was in agreement to buy the property, and we have not” agreed to that.
Corrective action
In response to what Bishop calls the problem with the process of notifying WPCA members when the proposed budget was changed, he said “the corrective action” will be to remove the land acquisition line items — expense and revenue — from the WPCA budget, and that “should happen very quickly.”
“The reason for the action is that when the WPCA set the rate they did not have the document showing those three lines, so they couldn’t possibly have considered them when they set the rate. As such it would misleading to have those lines as part of a public document reflecting the thoughts of the WPCA.”
At the June 2 meeting of WPCA Stratford Chief Administrative Officer Steven Nocera, standing, listens to WPCA member Stephanie Philips, partially obscured in white, ask questions before voting to increase the sewer fee. WPCA members Jim Connor, in dark suit, and Jason Santi were also at the table. Greg Reilly photo.