OLR Bill Analysis

HB 5536

AN ACT CONCERNING INTEREST ON CHARGES FOR SEWER SYSTEM EXPANSION.

SUMMARY:

This bill allows a water pollution control authority (WPCA) to assess, in substantially equal installment payments over a period of up to 30 years the cost of a sewer system whose acquisition, construction, or expansion is financed from the municipality's general reserves. It also allows the municipality to charge a reasonable rate of interest on such assessments. It requires the WPCA to have the town clerk where the assessed property is located to place a certificate on the land records indicating the assessment.

By law, these provisions apply to the acquisition and construction of systems financed by municipal bonds. The bill extends these provisions to systems expanded using bond financing.

EFFECTIVE DATE: October 1, 2009

COMMITTEE ACTION

Planning and Development Committee

Joint Favorable