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Middle Fort Pond Brook Sewer Project 1997-2004 A Financial History

Discover the financial details and allocation methods of the Middle Fort Pond Brook Sewer Project from 1997 to 2004, including total project cost, town contributions, specific and general benefit costs, avoided costs, and more.

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Middle Fort Pond Brook Sewer Project 1997-2004 A Financial History

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  1. Middle Fort Pond Brook Sewer Project 1997-2004A Financial History WASAAC Meeting December 14, 2017

  2. Discussion Topics • Total Project Cost, Metrics & Categories • Town Contributions via General Fund • Non Sewer Costs • General Benefit Sewer Costs • Specific Benefit Sewer Costs (Betterments) • Assessment Methods • By-Law Options • Connection of Capacity & Betterments

  3. M.F.P.B. Sewer Project Totals Total Project Cost = $25,133,050 1,666.67 Sewer Betterment Unit 678 Parcels

  4. Categories for Financials 1666.67 SBU Allocation Residential Parcels • Single Family Residential • Multi-Family / Condos • Village Complexes Non-Residential Parcels • Government • Commercial & Industrial • Non-profit $25,133,050 Allocation Specific Benefit Costs • Existing parcels receiving sewer service or access General Benefit Costs • Public parcels • Town-wide benefits • Future capacity built into the project (called Supersizing) Avoided Costs • Abutting Future Connections

  5. Cost & Betterment Breakdown Different determination methods for different parcels • Residential & Non Res Specific Benefit = $17,037,783 • Town’s General Benefit = $1,336,600 • Future Capacity General Benefit = $1,166,200 • School avoided costs = $5,500,000 • Town avoided costs = $26,600 • Housing Authority avoided costs = $65,867 Total = $25,133,050

  6. Town’s General Benefits PineHawk Archeological Site = $209,000 Land Acquisition = $120,000 Route 27 & 111 Paving = $696,000 Rte 27 & 111 Police Details = $250,000 Peer Review Study = $ 42,600 Rte 27 & 111 Traffic Study = $ 19,000 Town’s General Benefit $1,336,600 Paid by General Fund following Town Meeting Approval

  7. Future Capacity General Benefits Additional Pumping Capacity Larger diameter main lines Future Capacity General Benefit $1,166,000 Programmed receivable in Sewer Enterprise Fund and purchased via Privilege Fees after sewer System opened

  8. Avoided Cost Contributions School Complex Avoided Cost = $5,500,000 • Cost of a Wastewater Treatment Facility & Groundwater Discharge System • Estimated by a Third Party Consultant, vetted by MassDEP Town’s avoided costs = $26,600 • Installer’s estimate for a septic system Housing Authority avoided costs = $65,867 All Allowed to be paid over 30 year apportionment if selected

  9. Reduce Project Cost Total Project Cost $25,133,050 • Less Town’s General Benefit - $1,336,600 • Less Future Capacity General Benefit - $1,166,200 • Less School avoided costs - $5,500,000 • Less Town avoided costs - $ 26,600 • Less Housing Authority avoided costs - $ 65,867 Total to be allocated as Specific Benefit = $17,037,783

  10. Sewer Capacity Allocation Massachusetts Title 5 Design Flows as Basis • Single-family Residential • 300 gpd based on average of bedrooms in service area • Multi-family based on 2/3 of residential gpd • Based on a 2 bedroom or less standard • Commercial = 75 gpd/1,000 sqft floor area build-out • Industrial = 75 gpd/1,000 sqft floor area build-out • Non-Profit = gpd shown on existing septic permit

  11. Sewer Capacity Allocation • Capacity of Wastewater Treatment Facility • 500,000 gpd Peak Day Flow • Single-family 3 Bedroom Residential Home - Benchmarked at 300 gpd Peak - Basis of a Sewer Betterment Unit (SBU)

  12. SBU Determination by Class Residential Betterment Calculations Residential = 560.66 SBUs Multi-Family = 279.09 SBUs Non-Residential Betterment Calculations Commercial = 203.16 SBUs Industrial = 307.69 SBUs Non-Profit = 33.29 SBUs • 1,383.89 SBUs $17,037,783 / 1,383.89 SBUs = $12,311 per SBU

  13. SBU & Cost by Class Residential Betterment Calculations Residential = 560.66 SBUs = $6,902,574.24 Multi-Family = 279.09 SBUs = $3,436,020.93 Non-Residential Betterment Calculations Commercial = 203.16 SBUs = $2,501,207.54 Industrial = 307.69 SBUs = $3,788,130.28 Non-Profit = 33.29 SBUs= $ 4 09,850.38 • 1,383.89 SBUs = $17,037,783.37 $12,311 SBU can be applied to Avoided Cost Parcels

  14. Add Back in the Avoided Cost Parcels • Residential = 560.66 SBUs • Multi-Family = 279.09 SBUs • Commercial = 203.16 SBUs • Industrial = 307.69 SBUs • Non-Profit = 33.29 SBUs • Town ($26.6K) = 2.16 SBUs • Housing ($65.8K) = 5.35 SBUs • Schools ($5.5M) = 275.27 SBUs Total = 1,666.67 SBUs

  15. Financial Strategy Three SRF Loans = $24,020,699 for Eligible Costs Ineligible Costs = $ 1,112,351 for Ineligible Costs Total Project Cost = $25,133,050 $24M Borrowed via SRF $1.1M Borrowed via Muni Bond • Low interest loans ($1.55%) - Market Rate • 30 year term - 20 year term • Annual payment of principal - Bundled with other Muni • Bi-Annual payment of interest Purchases

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