Capital Charges- Tax Bill Item

Capital Charges


What are Capital Charges?

Capital Charges are your share of the annual debt payment for your Water District. These charges appear as a line item on your County/Town tax bill.  There used to be three water districts, Water District 1, 2, & 3, and they were combined into one, Water District 5, in 2015.  At the time they were consolidated one of the three districts had their own debt. That debt was not combined and spread over the new district, instead those who had the debt continued to pay that debt. The old debt is scheduled to be satisfied in 2027.  Incidentally the 4th water district also has old debt that will be paid off in 2027 as well. That district, Water District 4 – Harris Hill Manor was not involved in the consolidation in 2015.

Since consolidation the water districts have taken on new debt. This new debt was a bond to cover the new meters, meter change-out, AMR radio read system and a new billing system. This debt was taken on for 10 years and will be paid for by all customers in both districts. The debt will be retired in 2027.

How are the Capital Charges calculated?

The annual debt payment for each District is divided by the total number of units in the district.

Who gets a Capital Charge?

The old debt being paid off by the original debtors are accounts and property in the old Water District 3 and Water District 4. They were assessed by meeting the guidelines below.

Criteria used to determine property eligibility for debt responsibility:

  • The property must be located within the metes and bounds of the District description.
  • The property must have access to a Town water main.  Access includes having a water main on either side of the road adjacent to the property.
  • Vacant parcels are included.

Apartment and commercial buildings will be assessed one (1) unit per building.  If more than one meter is present in building, assessment will be total number of meters. (See TOBF Res No. 230-03)

The new debt for the meters is assigned and assessed slightly differently. Please see below.


Meter Size

Number of Units

Parcels, vacant or otherwise, in the District that have no access to a watermain


Vacant parcels that have access to a watermain


Meters: 5/8”, ¾” and 1” meters


              1 ½” and 2” meters


              3” meters


              4” meters


              6” meters


              8” domestic meter


              8” fire meter


             10” domestic meter


             10” fire meter



The number of units on a parcel are added together for a total that will be used on the tax bill. The unit value is determined by the annual debt payment divided by the total number of units in the Districts.

Do I have to send you a check for the Capital Charge?

No. These charges appear on the tax bill and are included in your tax bill total. There are public Hearings held every October to give the public an opportunity to ask questions or comment on that year’s Capital Charges assessed.

Is there new debt on the horizon that we will have to pay for?

Currently there are no projects that would require bonding for new debt. However, should there be something in the future be assured there will be Public Hearings before any debt can be incurred.