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Eastham shifts part of CPA surcharge to municipal water fund to help pay wastewater debt
Summary
Town meeting approved creating a municipal water infrastructure investment fund and a companion reduction in the Community Preservation Act surcharge that together redirect 1.25% of the tax surcharge toward wastewater/stormwater needs; proponents said the move preserves the 3% overall surcharge while funding critical infrastructure.
Select Board Chair Jerry Sarasell and finance staff presented Articles 4B and 4C proposing a targeted reallocation of the Community Preservation Act (CPA) surcharge to address impending wastewater debt service.
Under the plan, beginning in FY2028 the town would reduce the CPA surcharge from 3.00% to 1.75% and direct 1.25% into a new municipal water infrastructure investment fund. Officials said the net tax rate on the bill would remain unchanged (3% total) but the internal allocation would prioritize wastewater, stormwater and water‑system ecosystem work as debt service begins to come due.
Sarasell explained the rationale: the town faces significant multi‑year debt service tied to water and wastewater projects, and the fund serves as a predictable local revenue stream for long‑term infrastructure needs. The finance director noted that the reallocation would reduce the state CPA match by an estimated $140,000, and the select board recommended supplementing housing priorities from free cash where needed to offset impacts to community housing projects.
Town meeting approved Article 4B (create infrastructure fund and reallocate part of CPA) 409‑55 and Article 4C (reduce CPA to 1.75% in FY2028) 393‑61. Officials said the overall financing plan also includes previously authorized 0% SRF (state revolving fund) assistance and internal transfers to stabilization funds.
Implications: The change shifts the CPA allocation mix toward infrastructure priorities tied to wastewater and stormwater while preserving tax‑bill continuity. The finance committee and CPA committee will need to reprioritize project allocations and account for a modest reduction in the state match; select board members said they will use free cash to keep key housing priorities supported in the near term.
