Stafford, CT - September 9, 2024
The Water Pollution Control Authority (WPCA) and Stafford’s Director of Finance, John Lund, have been investigating a mystery.
Back in 2019, the WPCA took out a bond for $6 million. According to a memo provided by Lund at the most recent Board of Finance (BOF) meeting, the original resolution, voted on at town meeting, required the WPCA “to pay to the Town amounts equal to: 18.07% of the total principal and interest payments of the bonds issued by the Town for the Projects pursuant to the Resolution, and 18.07% of the amount of any statutorily required paydowns of principal made by the Town on notes issued by the Town for the Projects pursuant to the Resolution.”
However, since 2022, when the original bond was combined with other loans to consolidate the town’s debt, the WPCA “has been paying 35.8% of the total bond with a face value of $7.24 million.”
During the 2025 budgeting process, WPCA Superintendent and Selectman Rick Hartenstein brought it to Lund’s attention that he thought the amount the WPCA had been paying for the past few years was off. In 2022 and 2023, the WPCA paid $99,053.15 and $98,224.62 respectively. In FY 2024, they were set to pay $96,971.24.
“For reasons we are not able to recollect or have not found documentation to support, when the new debt was issued for the rolled portion of the above original $6 million, the calculation provided did not consider the 18.07%; instead, the formula was now at 35.8% of the entire new bond. The original resolution was apparently disregarded,” according to the memo.
So, the town began meeting with bond counsel from Shipman & Goodman and Munistat, the Town’s municipal financial advisory service, to determine what the WPCA should be paying and adjust accordingly. Together, they determined the following: “This analysis showed incrementally lower payments by the WPCA to the town. FY 24 would be $81,128.76 versus the $96,971.24 as stated above.”
Going forward, the town will receive roughly $15,000 less from the WPCA than anticipated.
“This is one more thing we’re bringing to where it should be,” said BOF Chair Steve Geryk.
Comments