Saturday, July 7, 2012
City of Derby Taxes / Confusion
Derby is also the smallest "City" in Connecticut (meaning an incorporated municipality).With little real-estate for new business to locate into, and the tax base (Grand List) shrinking as business departs - the burden of operating government falls upon those remaining.
There was a nail clipper manufacturer that operated here for years - gone. Next door to our company was a business that made rubber gasket for washing machines, refrigerators, and automobiles - sold and moved out of state. There were car dealerships - shuttered. There were lumber stores - vacant. Downtown was a national company that processed yearbooks and school photos - consolidated elsewhere. Those are just a few examples of reductions to Derby's Grand List.
There have been new business faces arrive in the City, but they are usually rehabilitations of existing facilities. A Kmart retail store is remade into a Lowes Home Improvement. A Pearl Vision Center becomes a Starbucks. A former Woolworth's retail location becomes a restaurant. None of these are true expansions or growth of our tax base, which is desperately needed.
Despite the arrival or departure of businesses, there are costs that remain to be paid for such as Police, Education, Public Works of Bridges/Roads, etc. The majority of income provided to Connecticut municipalities comes from Property Taxes based upon value assessed of real-property (real-estate and buildings) multiplied against a mill rate. Personal property (cars, trailers, business machinery, office equipment) also generates Property Taxes with the same multiplier of a "mill rate". The mill-rate is set every year via a budget process of elected officials with opportunity for public comment. The assessors valuations used in the calculations of Property Tax due, is 70% of market value.
Market values change, and the State of Ct requires a re-valuation periodically of all real property (real-estate and buildings). This occurred in Derby in 2011 and was implemented upon our tax bills for 2012. In "theory" if all property in the city faced a market downturn of 10%, and the mill-rate went up 10%, the net taxes paid would be level to the previous year. The reality is that certain property becomes more valued, some less, some have had improvements since last valuations, and thus the total taxes paid for real-property is a guessing game until the mill-rate is set. It's this guessing game and period of confusion that usually causes incorrect comments by the media or elected officials on the subject.
Lost in such confusion is the fact that the mill-rate is also applied to personal property, and if real-estate values have gone down as a whole across town, and thus the mill rate goes up as a multiplier, then the property tax paid on vehicles, machinery, equipment, etc - will likely go up.
This year offers an extreme of confusion given the disparity of values arrived at in the re-valuation process. To better explain this, I will be open with our information to use as example.
Our facility is located on three parcels of land, all of which abut one another and are within an Industrial Zone that defines how it can be used. Each parcel gets it's own property tax bill as a legal lot of land. Two of the parcels are vacant and are only used for surface storage. They have had no change in character over the past years, and are of similar size.
During the revaluation, one of those two parcels went down in valuation by 16%, understandable in the current economic climate compared to several years ago. With the new mill rate we paid 6% more in taxes on that parcel. The second of those two vacant parcels went down in value by 50%, and with the new mill rate we paid 37% less in taxes. The third parcel that is not vacant and has structures upon it (termed improvements) went down in value by 19% and we paid 4% more in taxes. Overall, our real-estate holdings went down in value by 21% and we paid essentially a zero% change of $73.30 more in property taxes on real-estate only. On the whole however (including personal property taxes on vehicles and machinery), our total personal property taxes remitted to City of Derby increased by 29%.
How can one parcel be valued 16% less, and the adjacent (abutting) parcel of similar size, same zoning, and likewise no change in character from simply being a vacant lot go down in value by 50%?
I went to a re-valuation appeal hearing, but basically got no answers as to why such a discrepancy could occur.
On top of this, there has been much current confusion in the public with City Government firing the Finance Director, or maybe he resigned, but possibly the resignation letter was forged, so a lawsuit ensued. In short order, the parties arrived at a settlement between them, but then it wasn't confirmed or agreed to by the Alderman, and thus it was taken to court, where it has been stated that the Finance Director was not qualified for the position, yet hired anyway. All of this soap opera occurred while the operations of finances and annual City budget approval were left to be delayed without any leadership or guidance from a Finance Director, on top of this year being a challenging period of implementing the revaluation and subsequent tax bill mailing.
This sad comedy of staff/leadership caused me to pay attention to all of our Property Tax bills. What I found was unsettling.
Of easy comparison, is the Personal Property Tax for vehicles, of which we have fourteen of various types ranging from trucks, vans, trailers, and passenger cars. As a vehicle ages, it's value decreases. The values are arrived at via a standardized listing throughout the state, thus a car in suburban Easton has the same value as in urban New Haven.
One of our vehicles stood out, a 2011 F250 4x4 Diesel Crew Cab Pickup. In 2011, it was assessed at $27,590 and we paid $769.76 in property taxes. The year's 2012 tax bill showed an assessed value of $31,160 and $1,106.18 in property taxes.
How can a 2yr old truck with over 100,000 miles on it go up in value by 13%, and with the new mill rate, go up in property taxes by 44%?
The assessed value used on a tax bill is by definition 70% of market value. State law: "Motor vehicle assessments are based upon 70% of average retail value as determined by your local assessor".
Using the NADA (National Automobile Dealers Association) guide, this vehicle has an "average trade-in" value of $27,200. 70% of this 3rd party arrived at market value is $19,040. If this value were used, the tax bill at 35.5 mill rate would be $675.92, or $430.26 less.
The total Personal Property Taxes (all vehicles, machinery, equipment, etc - not including the Real-Estate Property Tax) rose by 29% this year.
I will be appealing my vehicle's property tax assessment.
UPDATE: I visited the Tax Assessors office and questioned the valuation for the truck. The staff person looked it up in a reference guide, noted that the valuation was incorrect and provided a corrected tax bill. It took 20min.
Friday, September 30, 2011
De-Construction Part6 - Complete
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| "Rack Storage" brown building |
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| Recycling Center unloads scrap. |
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| Transporting sheething to recycler |
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| Removing is systematically |
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| Sheeting removed from racks |
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| Removing the Racks |
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| Finished with removal |
Friday, March 11, 2011
Housatonic River 2011 Spring Floods
Our property is located along the Housatonic River in Derby. From our location one can access Long Island Sound and beyond with vessel, but just north of us is the Ousatonic Dam (sometimes called the Derby Dam). This is what created the canals on both the Shelton and Derby sides of the river that provided water power for factories such as the building we occupy (once a munitions factory, then a textile print/dye factory, now a solar powered building products manufacturing company)
Friday, March 4, 2011
Accolades and Recognition



Friday, January 7, 2011
Public Charging of Snowy Tesla

The company has installed a weather proof electrical outlet, which is openly available to any electric car owner who wants to charge their car with free electricity generated at our location from our solar panel array. You can actually power your electric car with clean energy from the sun generated at the location where you top-up your battery.

Wednesday, December 29, 2010
Sunny Statistics 2010
- The system was in place for 368 days (29 days of which there was no production due to equipment issues, snow load prevented access to equipment repairs in Feb/Mar).
- The average system output was 330kwh/day.
- The average consumption of our operations was 295kwh/day.
- Highest daily electricity generation was May10 with 724kwh
- 112% of consumption was generated from the PV Solar System.
Friday, October 15, 2010
Hot Water Heater - Electric vs Gas
The hot water heater in the manufacturing area serviced wash basins and a bathroom. It was gas fired, 50 gallons, and needed replacement. We switched to a 6 gallon electric which we believe will yield substantial savings.A physical review revealed that use of hot water occurred only at end of work periods (break-time, lunch, end of day). Otherwise, the system was maintaining 50 gallons of hot water during off periods (such as evenings and weekends).
An on-demand system would not work due to the heavy load that occurs upon lunch time as an example, when all the workers are using actively washing up before a meal.
A 6 gallon tank was found to be the right size for our peak use. The tank takes up less room, and doesn't require the venting like the former natural gas fired tank.
The comparison of costs and determining payback of investment is offered via this government website.
Monday, September 20, 2010
Electric Vehicle Public Charging Station


Thursday, April 8, 2010
PV Solar - Excess generation payout
In Connecticut where our facility is located, utilities (electric, water, etc) are regulated by the Dept. of Public Utilities (DPUC). Photo-Voltaic generated electricity is considered a Class 1 Renewable Energy Resource, and the DPUC has a ruling on how generators of such energy should be dealt with.
In our region United Illuminating Co. is the electric utility. UI delivers our electricity, and in our case we also purchase our actual electricity from them as a provider (since deregulation, you can also choose to purchase electricity from other providers, re-sellers or aggregators - but everyone must deal with UI who owns the poles, transformers and "grid" infrastructure to deliver the power).
UI has a "Class 1 Renewable Net Energy Rider (NEC1)" to accompany their tarrif schedule and abide by the DPUC ruling. The rider states:
- Net energy billing shall be performed monthly, and payments for excess sales to the Company shall be made on an annual basis, for the period from April of each year to March of the following year.
- During the annual period, if energy sold to the Company in any month exceeds energy purchased, the excess sales will first be credited to the customer in the current billing period and any remaining net sales will be carried forward for crediting on a per kwh basis in the next billing period or a subsequent billing period within the annual net energy period.
- Any excess kwh remaining at the end of an annual period shall be paid at that time according to the Average hourly Connecticut ISO-NE real time locational marginal price (RT-LMP), for the hours 10am-4pm during the annual period.
In plain english: If the array generates more kwh than consumed in a month, the credit kwh carries forward to the future period. If there is a kwh credit at the end of the annual period, the value is paid to the generator. Value is determined by the peak period prices posted by the Regional Transmission Organization (Independent Systems Operator - New England) for our location within their system.
From 2009April till 2010March (billing periods) Our Photo-Voltaic array generated 8480kwh in excess of what was consumed. The ISO-NE RT-LMP for that period is .04663 per kwh. Thus we made $395.42 for the excess power generated. The true value of our PV system is deferring purchase of kwh from the utility.
To put this into relational terms, 8480kwh is approximately 6months of electricity for the typical household.
Monday, March 29, 2010
PV Solar System - First year results
Derby, CT (March 29, 2010) - IDA International Inc. today announced the results from 1 year of operating a photo-voltaic system at its facility in Derby, CT.
You can read the unveiling "operational" announcement of the system here. Data points:
- First year operations period 2009-Mar-23 thru 2010-Mar-23.
- System size is 525 photo-voltaic panels with a 100kw DC to AC inverter.
- Generated 111,266kwh of electricity, thus providing in excess of all consumption needs for operations on-site.
- Single day record of 695kwh was set on 2009-May-19.
- Nine months had more electricity production than consumed by operations, the exceptions were Nov, Dec, Jan.
- Based on data from the EPA for our electricity provider (United Illuminating), this clean generation avoided 103,032 lbs of carbon dioxide, 263 lbs of sulfer dioxide and 96lbs of nitrogen oxide from polluting the air.
- The "credits" from our renewable energy generation (as opposed to generation from coal or gas) were sold to the Ct. Clean Energy Fund.
See how clean the electricity you consume is via this EPA webpage.
Contact: thomas.harbinson@ida-intl.com
Wednesday, March 17, 2010
Sunny St Patrick's Day
Our Photo-Voltaic Solar Array records all it's statistics on a server every 5 minutes. This data can then be analyzed, or for today's purposes graphed. If any educator / researcher would like the raw log data, please contact me via email.
Data:
PV System size: 525 panels.
Inverter capacity: 100kw DC to AC.
Date: 2010/Mar/17 (St Patrick's Day)
Weather: Clear, no clouds, high temperature in the 60's.
Begin civil twilight 6:33 a.m
Sunrise 7:01 a.m.
Sun transit 1:01 p.m.
Sunset 7:01 p.m.
End civil twilight 7:29 p.m.
Electricity Creation begin 7:04 a.m.
Peak Generation (88.8kw) 1:39 p.m.
Electricity Creation stop 7:09 p.m.
Total Electricity for day 597kwh
Tuesday, January 5, 2010
Photovoltaic Energy in winter
There are less daylight hours during the winter time, the angle of the sun is lower in the sky and at times there is snow covering the array. Still, we have been successful in generating significant amounts of our total electricity consumption.
In November we generated 98% of our consumption, December was 65% (due to an equipment problem), January thus far is 75%.
During the winter months, we draw down on the credit on our account due to excess generation from the summer months. In April, if there remains a credit of kilowatt hours, it is swept clean and paid to us at a "wholesale" rate based on the New England regional electrical pool's cost for electricity generation (ISO New England).
As of today, our credit, or "banked" kwh is over 10,000 which represents a month and a half of consumption. Our forecast is to easily complete a year of solar generation come mid March 2010, where we operated our entire manufacturing and office facility off the sun.
Monday, November 9, 2009
Facility Improvements
Friday, April 17, 2009
Air Conditioning Upgraded
We hope that by bringing natural daylight openings into our building's design, and following enviornmatally sensitive operating methods, we can illustrate to others the benefits of thinking toward environmental and efficient design. We may even become a "leader" in the LEED field.
Tuesday, March 24, 2009
Announcement of 96kw Photo-Voltaic Electric System: Operational
Derby, CT (March 23, 2009) - IDA International Inc. announced today that it had completed installation of a 96kw photo-voltaic system at it's facility in Derby, CT.
Company President, Thomas Harbinson, recognized this as an exciting milestone for the company. "I'm pleased to announce that our facility will now be generating over 90% of our electricity needs, purely from the sun. This is an investment in our company's future and it's location in Derby, CT. While this is a decision that has taken significant time to implement, this has given us time integrate many decisions that will yield the optimum of results. We believe following our company's vision with emphasis on a "green" standard will be rewarding to the company from a financial perspective, and earn respect from it's customers, vendors and community as a company that sets environmentally sensitive standards."
The photo-voltaic (PV solar) system is a 525 array of panels mounted on the south facing roof of IDA's manufacturing building, a structure that dates to the late 1800's. Buildings then were often constructed in a "solar oriented" manner to take advantage of the sun lighting the workplace through windows and skylights, making this location ideal to take full advantage of solar electric generation potential. Our location is Lat: 41.324845, Long: -73.098274 Our building compass reading is 223-226 degrees (a "true" or "solar" reading adjusted for magnetic declination is 210-213 degrees). Our building roof pitch is: 25 (degrees). This data yields a Solar Pathfinder Annual Average of 98%
The location has a history of "green" energy use. The building was constructed adjacent to a canal where hydraulic power was taken from the river to run manufacturing machinery. One of the early occupants was a munitions company that built cannons. The building later housed a fabric dye and printing operations that were not clean operations by modern standards. The Hull Dye and Print Works was the last such entity, closing after a fire in the mid 1980's which substantially damaged the facility, leaving contamination from dyes and chemicals that needed remediation. The property was purchased from the City of Derby in the late 1980's and the long task of returning the property to viability began.
The project was partially funded by a grant from the Connecticut Clean Energy Fund’s On-Site Renewable Distributed Generation Program, which provides qualified projects funding that can equal as much as 50% of a project’s cost. Combined with federal investment tax credits and accelerated depreciation, solar projects in CT can realize returns in the range of 15-20%.
IDA International Inc. is a turn-key operation for curtain-wall and other building facades. IDA serves the greater metropolitan area with engineering, fabrication and installation of construction elements that create a structure's building envelope. For more information regarding IDA's solar system, contact thomas.harbinson@ida-intl.com, or visit the company's green manufacturing page at their website, http://www.ida-intl.com/
Wednesday, January 21, 2009
U.S. Green Building Council
IDA International Inc. has joined the U.S. Green Building Council.
Several of our recent projects have attained LEED ratings for their construction methods. IDA has long held the same beliefs and practices upheld by the USGBC, and our membership with them formally indicates our support of their ideals.
The USGBC is a 501(c)(3) nonprofit membership organization with a vision of a sustainable built environment within a generation. Its membership includes corporations, builders, universities, government agencies, and other nonprofit organizations. USGBC is dedicated to expanding green building practices and education, and its LEED® (Leadership in Energy and Environmental Design) Green Building Rating System™.
Wednesday, October 29, 2008
Announcement of 96kw Photo-Voltaic Electric System Installation
New PV System to Reduce IDA-International’s Energy Consumption by Over 90% Percent and Annual Carbon Emissions by 43 Tons.
Rockaway, NJ (October 29, 2008) – The Solar Center announced today that it will be commencing installation of a 96 kilowatt solar system for IDA-International of Derby, CT, its largest solar installation to date in that state.
Company President, Shannon Whitworth Kayen, hailed the project as another big step in The Solar Center’s continuing expansion of its CT presence, especially in the commercial solar marketplace. “We’re pleased to be able to work with IDA-International and the Connecticut Clean Energy Fund in advancing the cause of solar, reducing global warming gasses, furthering the goal of national energy independence, and supporting Connecticut’s congested southwestern electric grid, all while providing our customer with a project that will, ultimately, yield a substantial low-risk return on investment,” said Whitworth Kayen.
For its part, IDA, a manufacturer of facades and custom curtain-walls for commercial buildings, made a mission several years ago to bring an environmental awareness to its operations, with the vision toward becoming a green manufacturer. Many of the facades they construct are for buildings where the owner is seeking LEED status from the US Green Building Council. Thomas Harbinson, IDA's President, stated "we already use components that have a high recycled material content, and now our fabrication and assembly of those parts into a finished product will also be done in an environmentally sensitive manner." Harbinson adds, "Generating electricity from sunlight is a decision that took time to implement. Fortunately, when our 1800's era factory building was built, the designer took solar orientation into account for bringing daylight into the workplace. That orientation now works to our advantage with maximum potential for solar electrical generation. A standing seam metal roof as part of our building envelope both eases the attachment of the solar panels to our building, and reduces the heat gain on the building structure due to it's high emissivity." IDA hopes to illustrate that former under-utilized industrial buildings can be given new life with a green aspect such as solar electric generation. It's a business direction for other companies to take a serious look at.
The project was partially funded by a grant from the Connecticut Clean Energy Fund’s On-Site Renewable Distributed Generation Program, which provides qualified projects funding that can equal as much as 50% of a project’s cost. Combined with federal investment tax credits and accelerated depreciation, solar projects in CT can realize returns in the range of 15-20%.
The Solar Center, Inc. is one of the largest designers and installers of solar energy systems in the region, serving NY’s Hudson Valley, Long Island, New Jersey and Connecticut. For more information contact them at 973-627-7730, or visit their web site at http://www.thesolarcenter.com/
IDA International Inc. is a turn-key operation for curtain-wall and other building facades. IDA serves the greater metropolitan area with engineering, fabrication and installation of construction elements that create a structure's building envelope. For more information, contact them at 203-736-9249, or visit their green manufacturing page at http://www.ida-intl.com/
Sunday, July 1, 2007
Welcome to our company blog
Our intent is to use this venue to convey items which both customers and the community may find of interest. Typically referred to as press releases, a blogging publication tool allows the concept to be expanded from those typical subject to include items a reader might have difficulty discovering about otherwise.
For example, we will discuss our upcoming solar array installation that is of interest to both customers and the community.
All the best - TomH






