Article 28: Study the Method of Charging for Sewer – $20,000

Shall the Town of Hampton raise and appropriate the sum of $20,000 to engage the services of a professional financial advisor/engineer to study and report back to the Board of Selectmen to advise the Board and the Town on whether a sewer enterprise fund should be created that would remove sewer costs and expenses from the annual budget as a tax supported sewer system, as opposed to one that is supported by billing based upon volume of input into the system.  The report should include drafts of potential billing rates in accordance with statutes, the impact, if any, on the difference between billing for sewer changes verses maintaining said system on the property tax base, including the costs of bond payments for sewers by either method of payment, with said sum of $20,000 to come from the Unassigned Fund Balance.  This will be a non-lapsing appropriation per RSA 32:7, VI and shall not lapse until the work is completed or by March 31, 2020, whichever is sooner?

What it means: Currently, the cost of processing household waste via the Wastewater Treatment Facility is borne by taxpayers based on the valuation of their property.  This may not be the most equitable way to do it because those who make more use of the facilty (example: restaurants and hotels) pay on the same basis (valuation)  as those who use it only minimally (example those whose homes are not connected to the town’s sewer system and only use the WWTF as a receiving point when their septic tank is pumped.)  The study would evaluate various methods of charging by usage, and removing the costs from the tax base.  It would need to be determined how structural costs (plant upgrades as an example) would be handled as well as how businesses and state facilities would participate.

Those in favor say: Having an outside review is a good way to make the transition from a long-standing system to a completely different way to charge for sewer usage.  The Town needs to be certain that all costs are covered in a new system, and that it is fair to all residents.

Those against say: Those who are against the Article simply question whether it is necessary, or if someone already employed by the Town couldn’t figure out all the issues and how best to charge.

Fiscal Impact:  No tax impact because the dollars would be withdrawn from the Unassigned Fund Balance.