03/01/2021 BOARD OF SELECTMEN Minutes

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3 Board of Selectmen Minutes March 1, 2021 Update on Phase 1 of the Wastewater Plan: (continued) The CCIWPF was established to assist municipalities in funding critical wastewater infrastructure and water quality remediation projects. The same formula is applied to each qualified community to determine the grant amount equally. The subsidy percentage would apply to the principal of all projects costing over $1 million. The total monetary value of each grant equals the subsidy percentage times the final project cost. After final approval, the amount is allocated in four installments. The MassDEP publishes the Intended Use Plan (IUP) which lists the projects eligible to receive CWSRF loans and municipalities are notified of their eligibility to receive a CCIWPF grant. It is perceived the Town of Mashpee may receive 10%forgiveness from the CCIWPF. With a projected budget in Phase I of$51.2 million, this would result in $5.1 million in loan forgiveness. It is projected the CWSRF loan and CCIWPF subsidy would be fully determined prior to the May Town Meeting. In accordance with grant requirements, a municipality must approve project funding through a vote of Town Meeting by June 20, 2021. Revenue assumptions to be used for offset include the Rooms Tax estimated at $750,000 per year with 75% of revenues earmarked for wastewater obligations. The implementation of the WIIF at 2% adds a tax assessment of$89 per year. The 2%WIFF actually represents a 1%tax increase as the tax utilizes the 1% reduction from the CPA. The 2% WIIF would be assessed as $89 on an average home valued at $500,000. Homes of lesser value would thus be assessed at a lesser rate. A breakdown of costs will be presented to the Select Board on March 15, 2021 for additional review. In considering the average debt per household for the $51.2 million project in Phase I the $143 per year debt using the CCIWTP 10%forgiveness; minus -$15 and Rooms Tax offset minus -$49, brings forth a net cost of$80 per year in Phase I. However, the WIIF assessment is $89 per year. With the $80 reduction, this brings forth a net cost of$0 per household with an additional $9 to remain in the coffers for wastewater. The Town therefore does not require an override or additional funds for Phase I of the wastewater plan. The analysis to be provided by the project engineer on March 15, 2021 would further detail cost projections. Grinder pumps as previously discussed will be included as an option in the 75% design presentation. With regards to requirements of the CWSRF loan, the importance of a Flow Neutral Nitrogen Bylaw was prioritized as was the article and debt exclusion required for bonding purposes. Any ineligible cost is subject to bonding. At the next meeting locations to be connected to Phase I, and costs to individuals who would be directly affected by the Phase I project will be reviewed. Town Counsel would be requested to render an opinion regarding flow requirements as it relates to planned bedroom units before and after sewering. Town Manager Rodney C. Collins gave credit to his Financial Team for compiling data for the wastewater cost analysis. The Select Board expressed appreciation to Mr. Collins, his Financial Team,the Sewer Commission and to Selectman Andrew R. Gottlieb for their due diligence and guidance.