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WASTEWATER PHASE 1.2,uo FINANCIAL COST ANALYSIS <br /> Underlying circumstances: <br /> 1. Mashpee's Comprehensive Water Resources Management Plan(CWRMP)recommends a comprehensive hybrid plan <br /> for all areas ofMashpee.with nitrogen credit trading addressing our 3south-facing ombeyments(PoppnnessetThree <br /> Beya.VVaquoiV. <br /> 2. The Town is facing a cost of at least$88 million over the next 30 years-to address Phase 1 of its wastewater and <br /> stormwater obligations. <br /> 3. This total estimated cost includes expenses and solutions we will need to address cooperatively&collectively with <br /> Sandwich, Barnstable, and Falmouth for our south-facing embayments. <br /> 4. If our current actions such as shellfish propagation prove to be insufficient, it is likely the federal&state government, <br /> along with the Conservation Law Foundation,will step in and force residents to implement solutions at a far greater public <br /> &private cost than ifwmact promptly onour own. <br /> x.Aedirected,weare assuming aStatic real estate market for tax rate purposes. <br /> 6, Ifone assumption changes'All numbers change. <br /> Assumptions:Financial <br /> Cost assumptions:Operation&Maintenance <br /> 1. Are not included in infrastructure cost analysis, but estimated at an additional 1.2 million per year for Phase 1. <br /> Cost assumptions: Infrastructure <br /> 1. It is anticipated that the average interest costs for implementing these solutions will be at a collective interest rate of 0.0' <br /> 2. It is anticipated 3 different scenerios for loan forgiveness from the Massachusetts Clean Water Trust <br /> Scenario 1 -25Y6forgiveness <br /> 8oenoho2-12Y6forgiveness <br /> 8oanehu3-5Y6forgiveness <br /> 3. Having spoken with Clean Water Trust,The Town of Mashpee forgiveness amount is 3.4%and possibly 7%in 3 to 4 <br /> years.25Y4and 12%will not beunattainable from the Clean Water Trust. <br /> 4. There will be additional CWRMP costs to the Town after Phase 1,88 million, is completed. Phase 2&3have been <br /> estimated to be roughly the same as Phase 1 cost through Phase 4&5 estimates have not been included at this time. <br /> Phase 2&5was projected at88million�mch.due tolack ofdata although cost increases are expected. <br /> Revenue Assumptions: <br /> Revenue Assumptions: Operation and Maintenance <br /> 1. None are included atthis time and would need professional consultant to complete estimates. <br /> Revenue Assumptions: Infrastructure <br /> For all 5onenerimo: <br /> 1.Grant issued from the state 325million tothe Town nfMaehpnefor eoen*hn2&3. <br /> 2.3%WIIF implemented by Town meeting vote. Assume 3.25%increase yearly in levy amount. (Based on CPA <br /> commitment) <br /> 3. Betterments included in Scenario 3 projection. Phase 1:479 parcels of which 450 are considered bettered. <br /> 4. Assuming that all propertieo.vacentorimproved are 1obebettered. <br /> 5.VVeassume that average home value will hestagnant for 3Oyears <br /> O. Rooms Tax actual amount for FY1Owas$1O3.630. Assuming Rooms Tax toCCChamber nfCommerscmassumptions <br /> Assumptions inreport are increase toO%tax and increase ofnauiepb\u1.1 million based onnew legislation. <br /> Open items: <br /> 1.We would need a professional consultant to help with estimates for Infrastructure and especially Operations& <br /> Maintenance. <br />