OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sHB-5277
AN ACT AMENDING THE CHARTER OF THE SOUTH CENTRAL
CONNECTICUT WATER AUTHORITY.
Primary Analyst: LG 4/1/24
Contributing Analyst(s):
Reviewer: RW
OFA Fiscal Note
State Impact: None
Municipal Impact:
Municipalities Effect FY 25 $ FY 26 $
Various Municipalities Potential
Cost
Minimal Minimal
Various Municipalities Grand List
Reduction
None Minimal
Explanation
The bill expands property tax exemptions granted to the South-
Central Connecticut Water Authority (the Authority) to include
affiliated business entities and establishes interest rates for delinquent
charges.
This results in a potential grand list reduction to various
municipalities beginning in FY 26 to the extent these properties were
otherwise taxable. Water authorities currently make payments in lieu of
taxes (PILOTs) for tax-exempt water supply property. To the extent the
Authority makes additional PILOTs on the exempt property it may
offset any anticipated fiscal impact.
There is also a potential cost to municipalities beginning in FY 25 for
the interest on delinquent charges as municipalities are subject to rates
and charges as users of the water supply or wastewater system.
The bill makes other various changes to the Authority's enabling 2024HB-05277-R000230-FN.DOCX Page 2 of 2
legislation. This has no fiscal impact on the state or municipalities as the
Authority is a non-profit public corporation and political subdivision of
the State of Connecticut.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to interest on delinquent charges.