4/26/2011 SEWER COMMISSION Minutes

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�77 in the house for 50 years, so a residual payment would be necessary, however homeowners would not be faced with paying a high end cost. In comparison, Mr. Boyer noted the following- Current olto ing;Current law/30 years $20,000 principal $151,000 interest =$35,000 Proposed law 5o years $201,000 principal $15,258 interest =$35,000 Falmouth has not yet dternned whether costs should be paid over 30 or 50 years, although residents have been resistant to the idea of betterments. Chairman Fudala inquired about who would cover the difference of a higher rate if the ton charged 21/2%to residents.and Mr. Boyer responded that the torn would male up the difference with the tax rate. The Chair inquired whether the 30 year limit applied to being able to charge the betterment or the term for-borrowing. Mr.Boyer responded that it was for borrowing and noted that Senator O'Leary"s bill allowed for 5o years but that the interest rate would be very high at %or %. It was summarized that Falmouth proposed borrowing the funds for 30 years but charging a betterment for 50 years. In the event of a home sale, Mr. Boyer indicated that betterments would be paid off from the proceeds of the sale in order to clear the title. The Chair inquired about the alternative approach to place the cost ori the tax base-and Mr. Boyer referenced page 4, figure 3 which represents proposed costs from July 2010 and a proposed betterment target of$30,000, as was utilized at Silver Beach. The chart on page 4 depicts the annual costs for betterment and/or tax paymentsrelative to the $30,000, $20,000- $10,000 and o betterment 'Charges. All homeowners would pay approximately per year if no betterments were charged, representing a 12% increase in the tax rate. Chairman Fudala stated that the Mashpee Sewer Commission had considered using the tax base to fund wastewater since all residents would benefit from the system* Mr, Boyer personally disagreed, notmg that it was a political dialogue that would be individual to each town. The Chair noted that taxes could be deducted from federal income taxes but that betterments could not. Mr. Boyer expected that the Town Meeting vote regarding betterments would occur in 2015. Mr. O'Hara acted that. $333 per year did not seem lime an overwhelming cost. Chairman Fudala reported that Mashpee's water District has agreed to become a water/Sewer District and he suggested that 1lshpee also consider the special-legislation being pursued by Falmouth. W. O'Hara ar referenced Falmouth"s decision to pursue independent systems in East waquoit and M hp e's intent to sewer their side of the area, and inquired about how Falmouth intended to meet the zero nitrogen loading requirements with systems that were less effective � than sewering. Mr. Boyer responded that the East waquoit area has been proposed for phase 3, but not for a central sewer- system due to the lack of density and the resulting increase cost. Mr. Boyer suggested that there maybe consideration to tie 'into Mashpee"s system. The Chair emphasized that the TSL must be met and that Falmouth needed to meet its fair share in Waquit. W. Boyer responded that wastewater.planning would begin in the west of town and would not meet the west waquoit area until 2037. Chairman Fudala recommended consideration of an intermunicipal agreement with Mashpee to address the needs of the area, Falmouth Issues Chairman Fudala inquired about the $550,000 that had been set aside for urine diverting toilets. Jerry Potamis clarified that $500,000 had been set aside for dere nstr9ion projects, including 3