By Lisa J. Coatti
Staff Correspondent
SUFFIELD – The Board of Selectmen is considering rolling the trash collection fee into the real estate taxes.
Heavy debate occurred at Wednesday’s selectboard meeting as the pros and cons of changing the trash fee structure were considered. An ad hoc trash fee subcommittee was formed last June to study the inclusion of the trash fee in the mill rate. The six member committee, consisting of members of the Board of Finance, Board of Selectmen, Public Works and a town resident, was created to determine whether the town would receive more money from the state if the trash fee was included in the tax rate, and what the impact would be on town taxpayers.
Trash fee subcommittee Chairman Justin Donnelly, chairman of the town’s Board of Finance, attended Wednesday’s meeting to answer questions about the committee’s submitted report. Other members of the ad hoc committee include Tom Frenaye, James Lennon, Selectman Brian Fitzgerald, Guy Boccasile and Wilfred Roy. Frenaye and Boccasile were also present at the meeting.
Currently, town homeowners pay an annual trash pick-up fee of $206. The fee does not apply to businesses, apartments or condominium owners as they pay for their own commercial trash pick up. The fee is mandatory to homeowner with only a few (15) exceptions.
The committee reported that billing and record keeping for the trash fee is managed by the town tax collector at a cost of around $10,000 a year. The town pays $491,900 for residential trash collection, done by USA Hauling. The town also pays $374,500 to the Connecticut Resource Recovery Authority (CRRA) for trash delivered to them in Hartford for processing.
Suffield is unique in its trash collection fee as many neighboring towns, including Enfield, Granby and Windsor Locks, include trash pick up with their taxes. First Selectman Scott R. Lingenfelter said he supports the current system.
“It is a pay to use system,” he said. “It is probably the fairest tax we will have.”
If the trash fee is rolled into residential taxes, the town would receive an increase in state grant money from the Payment in Lieu of Taxes (PILOT) program. The PILOT program is based on taxes that would have to have been paid by the state for property located in the town. Such property includes the MacDougall-Walker Correctional Facility and Bradley International Airport. The town also receives money from the state casinos. The grant dollar amount is based on the total town budget. Adding the trash fee would increase the town tax budget
The subcommittee reported that last year, had the trash fee been included in the town tax base, it would have received an additional $135,000 in grant money and saved $10,000 in administrative expenses.
Selectman Timothy Reynolds pointed out that if the fee were included in the taxes it would affect businesses.
“Business taxes will go up,” he said. “When we’re trying to attract businesses to the town, that’s a negative.”
Selectman John Smith agreed.
“What would really benefit tax payers is bringing the business taxes up to 20 percent,” he said.
Currently, the town collects between 8 and 9 percent of taxes from businesses. The report states that commercial businesses would incur a tax increase of 2.4 percent if the fee structure was changed.
Boccasile said the change would be more expensive for some homeowners. Residents with a property value greater than $536,000 would experience an increase in cost. About 25 percent of town residents would see this increase. The report states that 75 percent of the town’s homeowners would see a decrease in total costs. Under the proposed policy, a property valued at $300,000 would save $90.50 a year if the fee were rolled into their property taxes.
“The benefits outweigh the other concerns weighed,” Fitzgerald said. “Small changes make a big difference. You’re throwing away $100,000 to $140,000 if you don’t do it.”
Selectman Tim Reynolds asked Donnelly to share his personal opinion on rolling the fees into the tax base.
“I abhor taxing people for services that they don’t get,” Donnelly said.
No action was taken at Wednesday’s meeting. The proposal was tabled until a future meeting.
