03/04/2021 FINANCE COMMITTEE Minutes

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3 Finance Committee Minutes March 4, 2021 Presentation from Town Manager: (continued) It was explained there are underlying circumstances as recommended by the Town's Comprehensive Water Resources Management Plan(CWRMP). This includes expenses and solutions associated to the comprehensive hybrid plan for all areas of Mashpee, with nitrogen credit addressing the three south-facing embayment's,Popponesset, Three Bays and Waquoit Bay. GHD, Inc. project engineers are expected to present 75% design and the Phase I cost estimate on March 15, 2021. The results of the cost estimate may differ from the forecast being given. Operations and maintenance in Phase I are expected to be contracted services and are considered separate from the infrastructure cost analysis. The projected cost is $1.2 million. However, there may be a start-up transition where additional costs may incur. The expense cost analysis would be further defined by the engineer and it is assumed the charges and rates would offset these costs when the plant is fully functional. It is projected the Town would secure principal forgiveness at 0% interest from the Clean Water State Revolving Fund(CWSRF) loan. It is expected the average subsidy of the CWSRF loan would be 3.3%for the Town of Mashpee. The payback of the loan would then be 3.3% less at a 0% interest rate. By receiving the CWSRF loan the Town qualifies for Cape Cod and Islands Water Protection Fund(CCIWPF) grant funding. It is projected the Town would receive 10% forgiveness or$5.1 million in the Phase I budget of$51.2 million. A requirement of the CWSRF loan is to adopt a Flow Neutral Bylaw for future and present wastewater treatment systems/sewer service areas. Compliance would maintain mandates associated to the 0%interest of the loan. Non-compliance would increase the loan to 2%, an average of$50 per year per taxpayer. The entire Town is expected to make payment for the infrastructure and piping associated to Phase I of the Wastewater Plan. With the adoption of the Flow Neutral Bylaw as it pertains to new development, a single-family residence may have (4)bedrooms by right on parcels of 40,000 square feet or less. On parcels greater than 40,000 square feet, a single-family residence may have(1)bedroom per 10,000 square feet of lot area by right. Existing development modifications for a single-family dwelling on a parcel of 40,000 square feet or less may increase the total number of bedrooms to (4)by right. On parcels over 40,000 square feet existing family dwellings may increase the number of bedrooms to (1) bedroom per 10,000 of lot area by right. Included in financial assumptions is the 2% WIIF which would assess $89 on an average home valued at approximately $489,000. A 3.25% increase is assumed yearly on the WIIF based on the levy amount. The Rooms Tax projected conservatively at$749,000 would earmark 75% of revenue for wastewater initiatives.