Finance committee backs sewer and roadway package after engineers say town is eligible for 0% SRF financing

The Nantucket Finance Committee voted to recommend the Somerset sewer and associated roadway/drainage project, which presenters described as a combined sewer, pump station, water main and roadway package with an estimated total program cost of roughly $44.8 million (including an estimated $1.0–1.5 million bike path allowance). Engineers told the committee the town qualified for the SRF intended use plan this year and may be eligible to apply for 0% financing for the sewer portion; failure to appropriate the funding at town meeting could cause the SRF allocation to be awarded to another applicant.

Engineers from Westland Samson outlined the scope: about 15,000 feet of gravity sewer and roughly 8,000 feet of low‑pressure sewer with grinder pumps, a new pump station to collect Somerset area flows, and about 7,000 feet of water main where needed. The plan also includes drainage upgrades and a multi‑use path to minimize repeated pavement disturbances. "You are eligible for 0% financing for this project," the presenter said, noting that the SRF program is administered through state and federal funding and that the town must submit a formal application to request the 0% rate.

Presenters and finance staff described funding options to recover some capital from benefiting properties, including adjusting the existing sewer capacity fee (currently reported at $20.32 per gallon/day) or assessing betterments on served properties. Engineers estimated a capacity fee nearer $65 per gallon per day — or an equivalent one‑time charge in the range of $20,000–$25,000 per dwelling unit — would recover roughly 25% of capital from the properties served; betterments were described as an alternative that typically begins collecting sooner because they may be added to property tax bills.

Committee members focused on three fiscal points: (1) the benefit of low‑interest (0%) SRF financing versus higher borrowing costs if the appropriation is delayed; (2) how much of the capital should be borne directly by served properties via capacity fees or betterments; and (3) the projected tax‑impact for the average single‑family home (presenters estimated roughly $69 per year absent a betterment allocation, subject to recalculation). Staff also reported about $3.3 million has already been spent on acquisition and engineering to date. The committee’s positive recommendation keeps the town in position to apply for SRF loan terms and move to permitting and bidding if town meeting approves the appropriation.