12/09/2019 BOARD OF SELECTMEN Agenda Packet

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Town of Mash . ...pee . ............................................................................................................ 1V1 nn e o To: Rodney Collins—Town Manager From: Dawn Thayer—Finance Director, Jason Streebe!—Director of.Assessing, Craig Mayen W Tax Collector/Treasurer M. Date: 121511 9 Re: Sewer projects We have updated the Sewer scenarios from earlier this August to concentrate on the cost to the average taxpayers. We used the amount presented to the Sewer Commission by GHD, $51.2 Million, for the construction of Phase 1, We also estimated $50 million for each of the Phases 2 and 3. We used the scenario from Alan McLennen and duplicated it based on his assumptions for the Town of Mashpee, The assumptions submitted by Alan McLennen have not been confirmed by the Town of Orleans. The cost to the average taxpayer,for phase I is$153 per year with 0%forgiveness and no rooms tax offset.We followed the states recommendation of not including forgiveness in the projection. We also included options that show forgiveness possibilities and rooms tax offsets, but no one knows how much forgiveness or offset we are going to get at this time. The scenarios listed give the figures for just,the construction of severing the Town of Mashpee. There is also the additional cost of adding a department to the Town,and other personnel hires that would be needed for administrative functions of billing, collection, payment of bills and technical experts for a new sewer department within the Town. The most.recent example, of a newly added department, Department of Natural Resources has a• budget of $750,000 a'year, of which approximately $200,.000 was previously included in the police department. This does not include benefits that are paid by the Town. A Town department is a recurring expense every year and should be added on top of the construction cost estimates for the amount for the Town to raise. At some point the Sewer fee.revenue will offset some of the operational costs but not at the initial. onset of the project. Per discussion with the water district it will Jake some time for revenues to offset with expenses. It is still the financial team's opinion a severing project of the Town of Mashpee within proposition 2 1/2 would be detrimental to all the Town and School departments funding in future years. It is the opinion of the Financial team that if the taxpayers want to create a department and do the construction of a sewer system under the confines of the Town, the project would need to be done