09/16/2019 BOARD OF SELECTMEN Minutes

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5 Board of Selectmen Minutes September 16, 2019 Alan McClennan• Presentation on the Town of Orleans' Experience Dealing with Developing a Plan for Wastewater Management and Finance: (continued) In May of 2014,the sum of$40,000 was authorized by a vote of Town Meeting to hire a consultant to develop a wastewater strategy plan. The Town of Orleans also asked the voters for$1 million to review the approved CWMP. There was an overwhelming vote of approval. With a projected $150 million required for wastewater improvements, a Citizens Water Quality Advisory Panel was created with representation from 8 different groups, 4 opponents and 4 proponents. Each designee was required to appoint an alternate for representation. A professional facilitator ran the meetings. Town staff members served as liaisons and representation included the CCC, DEP, and EPA. Forty people met every two weeks. After 39 meetings a consensus agreement was developed. Discussions were well managed and understood. The following May $47 million was requested of the voters to construct a town system. The vote was favorable; 75%-25%. The amount requested was three times the size of any capital project the Town of Orleans has ever undertaken. After identifying the key elements in need of sewering,two areas; 24%was isolated. In consultation with the Cape Cod Commission, it was determined there are alternative methods to solve this problem. This includes the use of PMB's and habitat restoration. Alternative approaches reduced the$150 million budget to $97 million. The Orleans tax rate is $7.40 per$1,000,the 10"' lowest in the state with the averaged assessed value home; $701,000. Mr. McClennan summarized the $47,176,120 in wastewater funding as follows; Cape Cod & Islands Clean Water Trust; 25% Forgiveness $11,819,030 State Revolving Loan Fund Capital Forgiveness; 10% $4,727,612 Current Betterment Policy; 19% $9,080,240 6% Hotel/Motel Tax; 22% $10,489,530 Short-term Rental Tax and/or Property Tax; 24% $11,159,708 Through the betterment process users pay approximately$14 million for the collection system. The town intends to collect betterment when the system is active in 2023. The betterment assessment process is mindful of affordable housing units to what is deemed affordable; $9 per month with pay back of 30 years, 0% financing, no surcharge on the betterment. Over 30 years it is estimated the betterment assessment would amount to$9,080,240, a cost of$675 per year per homeowner. The Town of Orleans currently meets all qualifications for 10% principal forgiveness from any loan from the state. A new source of revenue is the Short-term Rental Tax estimated in Orleans as follows; 25% seasonal homes rented short-term for 4 weeks per year at an average rent of$3,000 per week would reflect an annual revenue of $396,000 or$11,880,000 over 30 years. It is believed the tax will increase with more seasonal homes and rentals for 8-10 weeks. It is therefore possible for the$47 million to be paid with no impact on the tax rate and little need to increase property taxes to finance this project. The betterment assessment project may be decreased as a result.