03/16/2021 SEWER COMMISSION Minutes

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Commission votes on Add-Alternates / optional items Motion: Mr. Lyons moved to have the 1st Add-Alternate do the second set of tanks, and then the 2nd Add-Alternate do the third and fourth set of tanks, Mr. Dunn seconded. Vote: 4-0 unanimous Discussion of proposed funding sources Mr. Gottlieb described the different funding sources. The funding model allows you to plug in the different estimate, and run slightly different numbers, but the logic holds: We start at $51million dollars. The significant assumptions here are that there will be two sources of principal forgiveness. One is the 3.3% divided by the Clean Water Trust through the SRF program. That is applied to the average value home, which is about $480K. They portion out a 30 year debt cost of a $51million SRF 0% loan, is $143/year for that particular property. We assumed there will be a 10% reduction in the principal provided by the Cape & Islands Water Protection Trust Fund. We don't know for certain, but the 10% is within a reasonable range. That contributes $15 towards that $143 debt service cost. That leaves $128 to be services. We set aside 75% of our local option rooms tax at Town Meeting last year. That constitutes a contribution of $49 towards the debt service cost. Also at Town Meeting we authorized a 2% water infrastructure surcharge, which is anticipated to constitute $89 towards that $143. If you add all that up, it exceeds the debt service required and therefore the debt exclusion will not result in a net increase in taxation. Voters will be asked to authorize a debt at Town Meeting and then place that debt authorization outside of Proposition 2 1/2. That is so we don't consume our debt capacity and not be able to do smaller projects inside 2 1/2. That's the model, and the two variables are the Cape & Islands Trust Fund Contribution and estimated construction costs. Using these numbers, we still end up netting out at needing $0 additional dollars. The Town Manager requested a Communications Consultant to present this to the public. Mr. Fudala brought up the issue of Summerwood-do our takings have to go through a Town Meeting? Mr. Gottlieb said not to create confusion at the May Town Meeting, we'll have time at the October Meeting. Let's get passed this warrant before we start bringing other issues up. Motion: Ms. Malone moved that the Sewer Commission co-sponsor the debt exclusion, the No Net Flow, and the Article 97 articles, Mr. Dunn seconded. Vote: 4-0 unanimous Other items not reasonably anticipated by the Chair N/A