Night Out on Main Street July 12, 2025 - $34.4 Million in Water and Sewer Debt - How Did It Happen?

·      Waterbury is required to charge Watertown “just and equitable“rates for water and sewer services.

·      The 2 towns negotiated rates until 6/30/18, when the rate contract expired.  Watertown objected to the Waterbury’s new rates, and was unable to negotiate a lower rate.

·      On 7/1/18, Waterbury began charging their new rates.  Watertown continued to bill customers and pay Waterbury at the expired rates. 

·      Six months later, Waterbury filed suit against Watertown for $974,380, which was the unpaid fee balance, plus interest, at the statutory rate of 18%.

·      Watertown residents learned of the dispute on 7/28/23, when the Court ruled the fees were reasonable, and Watertown owed Waterbury $18.8 million ($4.6 million of which was interest).

·      The Court said Waterbury used good faith to negotiate, the testimony of Watertown’s two expert witnesseswas unreliable, and Attorney Paul Jessell’s testimony was not credible. 

·      On 8/9/23, Watertown appealed the Court’s decision.

·      A bill with a charge for an 8/18/23 “Telephone conference with P. Jessell regarding settlement overtures from the City”, implies that Waterbury would have accepted less than $18.8 million.

·      On 10/18/23, the Water and Sewer Authority increased their billed rates, but continued to pay Waterbury the expired rates, putting the additional monies collected in reserve.

·      On 6/6/25, the Appellate Court upheld the trial court’s decision.  Waterbury calculates that Watertown’s debt is now $34.4 million, a sum close to the Town budget of $38.8 million.

·      On 6/16/25, the Town Council formed a task force to study options to pay Waterbury.  They will report their findings in 60 days.

·      On 6/30/25, Watertown appealed the decision to the Supreme Court. 

·      Legal fees now exceed $500,000.  60 days of interest will cost approximately $1 million.

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Paid for by the Watertown-Oakville Independent Party, Cynthia Woodward, Treasurer