Relect Muriel Kramer

 

Sewer Betterment Explanation, Phase VI                (revised) November 12, 2007

Phase VI - History

Phase VI was voted in May 1996.  That vote set the appropriation at $5.6 million, and set the geographic boundaries of Phase VI. In September, 2000, the Town voted a betterment assessment of $3,350,000, which represented what was stated to be 50% of the contracted total project cost of $6,700,000. Also voted was the formula to be used to calculate the betterments [acreage @ 75% / frontage @ 25%].  The original list of Phase VI properties was split, some designated as priorities (Attachment 1) and the rest undesignated; the priority properties were the only ones assessed betterments at first.  The remaining properties on the original list were bettered in 2004.  The total 50% betterment was $3.35 million.

In May 2002, ATM added 11 properties on West Main Street to Phase VI.  Those properties changed the total acreage and total frontage.  That shift means that all the betterments charged to Phase VI would have to be recalculated; however, the total remains at $3.35 million.  When the 11 properties were added, it was decided to wait until the project was complete before recalculating all the betterments to adjust for the additional acreage and frontage; those 11 properties have not yet been assessed betterments.  (Attachment 2) 

Attachment 3 shows the formula for calculating betterments in Phase VI.

To compare initial betterments to current estimates:

Understand that the 11 properties added in May 2002 will pay 100% of their calculated betterment at the completion of the project.

The properties that have been bettered at approximately 50% will see an approximate 83% increase to their total betterment at today’s project cost.

           

                        Taking 92 West Main Street as an example:

                        First assessed betterment                                                          = $16,259.07

                        Corrected assessment after additional properties added = $15,295.24

                        Overage                                                                                   = $     963.83

            Using $13,000,000 as total to re-calculate the total betterment (current actual    appropriation is 13,026,295)

           

            .92 acres (for 92 W. Main) X 13,000,000 = 30,597.23 acreage

            390.885

            250 linear feet frontage  X  13,000,000 = 145,626.87 frontage

            22,317.31

            To then calculate the 75% acreage / 25% frontage, multiply acreage times 3 and frontage times 1 then divide by 4.

                       

                        3(30,597.23)   =    91,791.69

                        1(145,626.87) =  145,626.87

                        Total                    237,418.56

                        Divide the total by 4 = $59,354.64 assessed betterment on $13,000,000

                        Original approximate 50% betterment for 92 W. Main was $16,259.07

                        Expected 100% would have been $32,518.14; today the assessment will
                                 be $59,354.64, a delta increase of $26,836.50 (or 82.53% increase).

                        Additional assessment will be $43,096.29.

We will likely need a consultant to manage the betterment work and calculations at completion of the project.