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� IIIII <br /> Town of Mashpee <br /> Me o <br /> To: Rodney Collins—Town Manager <br /> From: Dawn Thayer—Finance Director,Jason Streebel—Director of Assessing, Craig Mayen-Tax <br /> Collector/Treasurer <br /> CC: <br /> Date: 11/18/19 <br /> Re: Sewer projects <br /> We have updated the Sewer scenarios from earlier this August to concentrate on the cost to the <br /> average taxpayers. <br /> We used the amount presented to the Sewer Commission by GHD, $51.2 Million, for the construction <br /> of Phase 1. We also estimated $50 million for each of the Phases 2 and 3, We used the scenario <br /> from Alan McLennen and duplicated it based on his assumptions for the Town of Mashpee. We do <br /> not support his assumptions as the Town of Orleans Town Manager and Finance Team do not <br /> support his assumptions either. <br /> The cost to the average taxpayer for phase 1 is$153 per year with 0%forgiveness and no rooms tax <br /> offset.We followed the states recommendation of not including forgiveness in the projection. We also <br /> included options that show forgiveness possibilities and rooms tax offsets, but no one knows how <br /> much forgiveness or offset we are going to get at this time. <br /> The scenarios listed give the figures for just the construction of sewering the Town of Mashpee. <br /> There is also the additional cost of adding a department to the Town and other personnel hires that <br /> would be needed for administrative functions of billing, collection, payment of bills and technical <br /> experts for a new sewer department within the Town. <br /> The most recent example, of a newly added department,.Department of Natural Resources has a <br /> budget of $750,000 a year, of which approximately $200,000 was previously included in the police <br /> department. This does not include benefits that are paid by the Town. A Town department is a <br /> recurring expense every year and should be added on top of the construction cost estimates for the <br /> amount for the Town to raise. At some point the Sewer fee revenue will offset some of the operational <br /> costs but not at the initial onset of the project, Per discussion with the water district it will take some <br /> time for revenues to offset with expenses. <br /> It is still the financial team's opinion a sewering project of the Town of Mashpee within proposition 2'/z <br /> would be detrimental to all the Town and School departments funding in future years. <br /> It is the opinion of the Financial team that if the taxpayers want to create a department and do the <br /> construction of a sewer system under the confines of the Town, the project would need to be done <br /> 1 <br />