NEWS RELEASE

December 8, 2004

            In light of a decrease in water sales and increased environmental regulatory requirements, especially for wastewater treatment and combined sewer overflow reduction, both water rates and the tax on member towns will increase.

            The water rate will go up by 12.74 percent, from $1.57 per 100 cubic feet to $1.77 per 100 cubic feet. The means that the average family using 12,000 cubic feet of water (or about 90,000 gallons) annually, will pay approximately $10.93 more per quarter than under previous rates. The rates will go into effect for usage on and after January 1, 2005.

            Despite the increase, MDC customers will still pay some of the lowest water rates in the state, with an average annual bill of $386. In comparison, the average Connecticut Water Company customer pays $560 per year. Averages for other major water providers include: Bridgeport Hydraulic Co., $662; Regional Water Authority (New Haven area), $486.

            The overall tax on MDC member towns will increase 5.09%. The impact of the tax on individual member municipalities for sewage treatment will vary based on the formula for allocating the annual sewer tax, as mandated in the MDC’s charter. The formula calls for the total sewer tax to be divided among the member municipalities in proportion to the total revenue received from direct taxation in each town, as averaged over the previous three years. Thus, a town experiencing an increase in tax receipts relatively greater than the other member towns will assume a larger portion of the MDC’s total sewer tax.

The 2005 budget provides for 550 positions, 23 fewer than the 2004 budget. A retirement incentive program offered to eligible employees will result in a savings of approximately $1 million.

            In addition, the budget provides for increased costs for the purchase of credits under the Connecticut Department of Environmental Protection’s nitrogen reduction program; and an increase in debt service resulting from capital improvements in the sewer operations.

The MDC’s 2005 Capital Improvement Program totals $43.4 million, to be funded primarily through bond issues. Of that, $25.65 million will be used for wastewater programs, including projects related to the improving the quality of the Connecticut River, and addressing flooding and sewage backups in the Upper Albany Avenue area of Hartford.

            The MDC is a nonprofit municipal corporation chartered by the Connecticut General Assembly in 1929. The District provides water, sewer and household hazardous waste collection services to its member municipalities: Bloomfield, East Hartford, Hartford, Newington, Rocky Hill, West Hartford, Wethersfield and Windsor. In addition, under a series of special agreements, the District supplies treated water to Glastonbury, the southern portion of South Windsor, the eastern portion of Farmington, East Granby and Unionville

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