1.      Brief History & Timeline of the Chelmsford Sewer Project

Initial awareness of wastewater disposal issues in Chelmsford dates back to the 1960s.   Between 1966 and 1980, the town was cited numerous times for violations of the Clean Water Act, culminating in a March 11, 1980 Consent Judgement establishing an implementation schedule for completion of a Facilities Plan for Wastewater Management.  The initial plan was completed in 1986, establishing a phased program to sewer "targeted needs areas" of the town.

 Sewer construction commenced in 1987 and the first public sewers were approved for use in 1989.  Finally, the residents of Chelmsford were witnessing the beginning of a process designed to:

 1.                  Eliminate ground water and surface water pollution;

 2.                  Protect our drinking water supply;

 3.                  Eliminate severe septic system problems due to shallow bedrock, poor soils, and/or high ground water conditions; and

 4.                  Provide sewers to homes with septic systems that can't be repaired to meet minimum state and local requirements.

 The summer of 1999 marked the start of construction for the final phase of the initial project.  The originally envisioned project (1986) was to provide sewer service to approximately 68% of Chelmsford.  This work comprised Phases 1-3.  When construction commenced in East Chelmsford in late 1998, the originally envisioned project was nearing completion.  However, triggered by changes to the state sanitary code (Title 5) in 1995, Chelmsford voters subsequently approved Phase 4 to serve the remaining 32% of Chelmsford.  By the end of the calendar year 2010, the entire town will be fronted by active sewer lines, thereby providing all properties with the ability to connect to the municipal system. 

 Overall Sewer System Description

The final constructed system will include the following:

Project Costs/Funding

  2.      History of Support for the Project          

 In 1984, 1987, 1989, and 1996, the town of Chelmsford approved town meeting articles and separate referendum ballot questions that authorized funding for various portions of the town-wide sewer project.  In 2003, 2004, and 2008 the Town authorized the transfer of a certain amount of funds from the Sewer Betterment Special Revenue Account to pay for the capital cost of constructing sewers.  The 2008 vote also authorized the use of funds accumulated in the Sewer Enterprise Fund through an increase to the Sewer User Charges.

Town Meeting Votes

As you will note from the above table, support for the project has been overwhelming.  The first town meeting article in 1984 passed 361 to 16.  Every subsequent vote through 1989 passed unanimously, including the large appropriation in 1989 of $39 million.   The town meeting article in 1996 for $49 million passed 147 to 2.  The 2003, 2004, and 2008 articles for the transfer of funds from the Sewer Betterment Special Revenue Account to pay for the capital cost of constructing sewers passed easily by a show of hands with an obvious 2/3's vote rule and no need for a hand count.

 Support for the project was further solidified when Chelmsford voters went to the polls.  On four separate occasions, Chelmsford voters authorized Proposition 2 ½ exemptions.  The voters consistently supported the sewer project by approximately 2 to 1 margins in 1984, 1987, and 1989.  In 1996, voters supported the sewer project by more than a 3 to 1 margin.

3.      State/Federal Funding & Measures to Minimize Local Costs

 Since the early 1980's when the Commission began planning for this project, the highest priority was to minimize local costs by aggressively pursuing, and then maximizing, all possible state and/or federal aid available.  Through aggressive lobbying, and through submission of stacks of documentation justifying "Need" each fiscal year, Chelmsford has been extremely successful in obtaining assistance.  More than 50% of the $165 million construction costs have been funded through state or federal grant/loan programs, the majority of which has come through the State Revolving Loan Fund Program (SRF), thereby reducing overall project costs.  Most recently, the town qualified for stimulus funding through the SRF program under the American Recovery and Reinvestment Act of 2009.  This resulted in approximately $1.5M in grants and a $12M  SRF low interest loan for the final two contracts on the project. 

 Other Methods to Minimize Local Costs

 Maximizing available funding is not the only method being used to reduce the local costs.  We have entered into agreements with private developers to extend sewerage to areas at no cost to the tax payers.  As an example, over two miles of sewers were extended on Littleton Road, serving that corridor, and eliminating the septic system problems and water quality problems in the Chelmsford Trailer Park.  This project would have cost the town approximately $2 million.  In addition, each home and business that is fronted by the sewer must pay a betterment assessment to offset the capital cost of construction, thereby reducing the tax burden.

 4.   Revenue Sources

There are two main sources of our revenues.  The first is Betterments and Privilege Fees.  The second is License Fees, Connection Permit Fees, and User Fees.

 Betterments or Privilege Fees are assessed to properties that have been "improved" by municipal sewerage.  The single-family residential betterment is currently $6,000.  This assessment can be paid in full or may be apportioned over 20 years.

 A Privilege Fee is assessed to those properties that can't be assessed a Betterment but still are "improved," usually because they extended sewers on their own to reach the municipal sewer system.  The Betterment and Privilege Fees collected are used to assist in retiring the local share debt of the sewer project.

 The remaining fees are administered through the sewer enterprise fund and are used to pay for the operation and maintenance costs of the system.  The current user fee is $3.42 per 1,000 gallons.

 5.   Impact on Tax Rate

 The overall project costs not covered by State or Federal assistance or Betterments and Privilege Fees are covered through taxes.  As we stated earlier, these costs are exempt from Proposition 2 ½ as a result of four separate ballot questions.

 The average tax increase has varied over the course of the entire project but at no point has it exceeded the agreed upon cap of $2.10 per $1,000 valuation. 

 6.   In Closing

 The residents of Chelmsford have made a unified commitment to protect our groundwater and drinking water supply and to clean the waters of the Commonwealth.  We are aware of the frustrations some residents have felt and the inconveniences many residents have tolerated, and continue to tolerate, from sewer construction operations.  We ask these residents to be patient.  Please remember, we are here to work with you, and the long-term benefits of this project are what is most important.  We hope this information is helpful, and we will continue our commitment to the tax payers of Chelmsford to complete the project while minimizing local costs.