Falmouth outlines $17,379 per-SEU estimate in updated Great Pond sewer plan; interim Clean Water Trust loans approved

Falmouth officials on May 18 released a revised cost and betterment plan for the Great Pond (Ryer Pond) Phase 1 sewer project and authorized interim state loan notes to fund construction draws.

Town Water Superintendent Sandy Walls and engineering staff told the Select Board the service area contains 799 parcels and, after parcel-level reviews, the project team assigned 848.25 sewer-equivalent units (SEUs) to properties in the service area. Using the updated project budget (roughly $49.65 million before SRF forgiveness) and expected loan forgiveness under the SRF program, staff estimated the portion to be recovered through property betterments at about $14.7 million. That yields a current estimate of $17,379 per SEU. If a property owner elects the town’s 30-year installment option at 0% interest, the annual charge per SEU would be about $579.

‘‘Those numbers are based on the current estimated project cost and the SEU assignments we’ve developed with the assessor’s, planning and building departments,’’ Walls told the board. She said the assignment rules follow the published betterment policy: most single-family dwellings and typical condo units are one SEU; larger multi-family and commercial properties are assigned fractional SEUs based on bedrooms or historic water use (one SEU per 135 gallons/day of average use).

Staff stressed the figures are preliminary. The Select Board will later vote an order of assessment and a final betterment plan only after project completion and certification of the final project cost; until then the draft numbers may fall. Project completion is estimated in late 2027 and property owners would be notified by certified mail when the system is available to connect.

Immediate financing: interim Clean Water Trust notes

To keep construction moving, the board approved two interim loan notes and related closing documents with the Massachusetts Clean Water Trust that will provide SRF-eligible funding for construction draws. Bond counsel and the finance director told the board the notes were prepared under the town’s prior town-meeting authorization for the project and will be issued at a 0% interest SRF rate; the town also expects to benefit from a 25% SRF loan forgiveness program that will reduce the total town obligation. The board voted to authorize the treasurer to issue interim notes, execute financing agreements and sign closing documents.

What this means for property owners

If the board later votes an order of assessment, each property’s assessment will be based on its assigned SEUs. Owners will receive a final assessment notice after the project is certified; they can pay the betterment in full or opt for the 30-year installment plan at 0% interest. The town plans to hold an owner information meeting (announced for May 20 at Lawrence School) to explain SEU assignments, anticipated connection timing and available financial assistance programs (including Cape Cod loan programs and elderly deferral options).

Board response and next steps

Select Board members pressed staff on what might lower the per-SEU cost (for example, excluding town-paid grinder pumps or higher-than-expected SRF forgiveness) and on options for low-income or senior homeowners. Staff and managers said those policy decisions (for example, whether the town would subsidize grinder pumps) can reduce betterment totals but should be decided before certification; they also said the board must vote the order of assessment in a later session after final project accounting.

The board’s vote to approve interim loan notes allows construction to continue while staff finalizes the betterment plan, completes an appraisal of final costs and prepares the formal assessment schedule.