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WASTEWATER PHASE 1 21&3 FINANCIAL COST ANALYSIS <br /> Underyling circurnstanGes: <br /> 1. Mashpee's Comprehensive Water Resource's Management Plan(CWRMP)recommends a comprehensive hybrid <br /> plan for all areas of Mashpee,with nitrogen credit trading addressing our 3 south-facing emba,yments(Poppon,esset, <br /> Three Bays,VVaquoit). I <br /> 2. The Town is facing a cost of at least$88 million over the next 30 years-to address phase I of its wastewater and <br /> storyobligations. <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 if we act promptly on our own. <br /> 5.As directed,we are assuming a Static real estate market for tax rate purposes. <br /> 6. If one assumption changes-All numbers change. <br /> Financial Assumptions. <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 th'at 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 sceneries for loan forgiveness from the Massachusetts CleanWater Trust <br /> Scenerio I -25%forgiveness <br /> Scenerio 2-12%forgiveness <br /> Scenerio 3-5%forgiveness <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.25%and 12%will not be unattainable from the Clean Water Trust.The Cape&Islands Trust from Rooms tax <br /> surcharge is designated to offset infrastructure costs.At this time itis unknown how much revenue this fund will generate <br /> and not taken into account for the sceneries. <br /> 4. There will be additional CWRIVIP costs to the Town after Phase 1,88 million,is completed. Phase 2&3 have 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&3 was projected at 88 million each,due to lack of data although cost increases are expected. <br /> Revenue Assumptions: <br /> Revenue Assumptions: Operation and Maintenance <br /> 1, None are included at this time and would need professional consultant to complete estimates. <br /> Revenue Assumptions-. Infrastructure <br /> For both scenerios- <br /> 1.Grant issued from th6 state 3.25 million to the Town of Mashpee for scenerio 2. <br /> 2.3%WIIF implemented by Town meeting vote. Assume 3.25%increase yearly in levy amount.(Based on CPA <br /> commitment) <br /> 3. Assuming that all properties,vacant or improved are to be bettered. <br /> 4.We assume that average home value will be stagnant for 30 years <br /> 5.Rooms Tax actual amount for FY`1 8 was$103,630. Assuming Rooms Tax to CC Chamber of Commerace assumptions <br /> Assumptions in report are increase to 6%'tax and increase of reciepts to 1.1 million based on new legislation. <br /> Open items: <br /> ,''eve would,need a professional consultant to help with estimates for Infrastructure and especially Operations& <br /> Maintenance. <br /> Page 3 <br />