Orleans readies $4.7m Phase 2 sewer betterment levy
Town of Orleans, Massachusetts · Meeting date: October 22, 2026 · Published: October 23, 2026
The Wastewater Management Advisory Committee reviewed the calculation and timetable for Phase 2 property-owner assessments ahead of an October 27 public meeting. The final project cost and financing rate have yet to be set, but the town is working toward putting the charges on tax bills in July 2027.
Key points
- Preliminary Phase 2 costs total $30.9 million, including construction, design and bidding; a Cape and Islands Water Protection Fund subsidy of about $7.4 million was deducted before the betterment calculation.
- Under the town's 80/20 cost split, 20% of the net Phase 2 cost—about $4.7 million—would be recovered through betterments.
- The preliminary calculation puts one sewer unit at roughly $7,900, based on 125 gallons per day of average water use.
- Nearly 60% of Phase 2 properties are expected to be assigned the minimum one sewer unit.
- The finance rate for a 30-year payment option remains to be determined; Phase 1 betterments carried a 0% rate.
Full report
Orleans is moving toward a $4.7 million property-owner betterment levy for its Phase 2 sewer project, with a preliminary assessment formula placing the value of one sewer unit at about $7,900.
The Wastewater Management Advisory Committee reviewed the proposed presentation for an October 27 meeting with Phase 2 property owners. The session is intended to provide an early estimate of assessments, while final project costs and the financing rate are still being completed.
The preliminary accounting puts Phase 2 costs at $30.9 million. That figure includes the construction programme as well as design and bidding costs. The construction State Revolving Fund loan was $29.4 million. A Cape and Islands Water Protection Fund subsidy equal to 25% of the SRF value, or approximately $7.4 million, is deducted from the project cost.
The town's adopted approach assigns 20% of the resulting net cost to betterments, with the remaining 80% borne by the town. On the preliminary figures, the recoverable amount is about $4.7 million.
Assessments will be distributed according to each property's average total water use over the 2023-25 period. Total use includes indoor consumption and outside uses such as irrigation. The committee said deduct or irrigation meters will not alter the betterment calculation, although they can be used to ensure future sewer-use charges apply only to water entering the sewer system.
The proposed formula divides a property's average daily water use by 125 gallons per day—the calculated Phase 2 sewer-unit benchmark—and rounds assessments up to the nearest hundredth of a unit. Every assessed property receives at least one sewer unit. Nearly 60% of properties in the service area are expected to fall into that minimum category.
A 30-year repayment period is the default payment option, with annual charges divided across quarterly tax bills. Property owners may instead make a lump-sum payment. The bylaw allows a betterment finance rate of up to 2% above the construction finance rate, but no Phase 2 rate has been set. The Phase 1 betterment rate was 0%.
Staff said a July 2027 tax-bill date is the target if final costs can be certified by early January. Otherwise, the assessment could move to a later billing cycle, with January 2028 discussed as the fallback timing. Final costs, the financing recommendation and the order of betterment are to go through the Board of Water and Sewer Commissioners and Select Board before the assessments are recorded.
This summary was generated by AI based on the source document and may contain errors.
Source: Wastewater Management Advisory Committee, Town of Orleans