By Mr. Eldridge of Acton, petition (accompanied by bill, House, No. 4543) of James B. Eldridge (by vote of the town) that the town of Lunenberg be authorized to impose assessments for water and sewer betterments. Municipalities and Regional Government. [Local Approval Received.]

The Commonwealth of Massachusetts

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PETITION OF:

James B. Eldridge

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In the Year Two Thousand and Eight.

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An Act relative to an intermunicipal agreement and betterment assessments in the town of Lunenburg

    Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1.           Authorizes the Town to levy assessments for the drinking water portion of the project.  Public drinking water is supplied by a water district, not by the Town of Lunenburg.  As there is no Lunenburg Water Department or Lunenburg Water Commissioners there is correspondingly no authority for the Town to levy assessments for the construction of a water supply system.  Although the district has the authority to levy assessments pursuant to G.L.c.40, section 42K, it is the Town that is assuming full responsibility for the costs of design, engineering, construction, and installation of the facilities.   The Town and the water district have agreed that in lieu of payment by the water district the Town will levy the assessments for the costs of the project, including the drinking water portion.

Sewer and Water systems are long-lived infrastructure, usually financed over the longest term available.  Amortization of the loan principal over a longer term reduces the annual principal installment and longer terms would decrease the annualized cost to the system’s user.  USDA Rural Development water and sewer programs allow financing of 40 years, which allows cities and towns to take advantage of the longer loan terms.  But Massachusetts law only permits assessments to be apportioned over a 20-year period.   See email from Dan Beaudette, USDA

SECTION 2.           Authorizes the assessments for the water infrastructure to be apportioned over a 40-year period instead of the 20-year period set out in G.L.c.80, §13. 

SECTION 3.           Allows the assessments relating to the sewer portion of the project to be paid over a 40-year period.

SECTION 4.           Authorizes the Town and the Lunenburg Water District of Lunenburg to enter into an Inter-Municipal Agreement for a term of years that minimally covers the term of the 40-year betterment assessment.  G.L.c.40, §4A only permits IMAs for a term of 25-years.