[HISTORY: Adopted by the Board of Selectmen of the Town of
Salem 2-9-2004; last amended 4-23-2007 (Ch. 310 of the 1995 Code). Subsequent amendments noted
where applicable.]
The Board of Selectmen realizes the broad scope of the water
and sewer system projects throughout the community and the need to
continually manage, construct, enlarge, acquire, extend, and make
improvements to the systems for continued reliability and availability
of the systems to provide special benefit to those who are and may
be served by such utility systems. Further the Board recognizes the
general benefit to the customers of the municipal utility systems
of sharing in the cost of extending system services to areas of the
community not yet serviced and the resulting benefit provided to landowners
by the availability of municipal water and sewer service. Therefore
the purpose of this chapter is to provide high-quality, available
and reasonably reliable water and sewer resources, to the benefit
of current and future users, as funded through the combination of
the user rate and reasonable and equitable assessments across all
user types, by assessing those creating a new demand through new connections
and/or modifying the demand of an existing connection to the Town
of Salem public water system and/or the public sanitary sewer system.
As used in this chapter, the following terms shall have the
meanings indicated:
The presence of a reasonably reliable and quality water and
sewer system to the extent that such system provides special benefit
and is made or can be made available to those who are or will benefit
from such systems. The obligation to provide accessibility to the
water and sewer systems shall not solely be the obligation of the
Town.
The advantage, enhancement, and/or facilitation of use or
development derived from the availability of sewer and water services
throughout the community and specifically to parcels that currently
or in the future will be permitted to connect to the sewer and water
system.
The sum of all costs incurred for the utility extension,
including design, engineering, right-of-way acquisition, construction,
construction supervision, traffic control, legal and bonding expenses,
interest on debt and other reasonable ancillary expenses.
The cost of the increase in demand and to provide reasonable
availability as expressed by the projects in the document "Town of
Salem, NH Town-wide Sewer and Water Buildout Estimated Costs and Demand
Flows." This document represents the estimated total cost of projects
and the estimated increases in capacity to allow for demand and provide
for reasonable and continual availability. The document may be amended
from time to time as projects are amended, completed, or added to
the document. The document represents projects that have been, are
or will be planned as part of a Town-wide plan for the water and sewer
systems and not the sole limit of the possible use of revenues generated
by this chapter.
The projected flow/discharge of water or sewer to/from a
particular land use as indicated by the document titled "Town of Salem
Flow Demand and Benefit Values." Where a use is proposed that is not
listed in the document, the Town may determine that the use is similar
to a use listed in the document or the Town may use national or other
reasonable standards to make such determination.
Not eligible for a building permit at the time a utility
extension occurs.
A parcel of land, otherwise known as a "lot," that is privately
owned and segregated by deed from adjacent properties.
A waterline extending from a water distribution main, or
a sewer line ("stub") extending from a sewer collector main, to a
point at or near the property line of a parcel.
The revenue collected from those who derive special benefit
from the sewer system to pay for the cost of the demand on, and provide
availability to, the Town of Salem's sewer system, including the management,
creation, improvement, extension and expansion of wastewater collection
and treatment, pumping, and all other facilities that generally provide
for collection and treatment of sewage.
Benefit derived from projects, construction, enhancements,
expansion, utility extensions or other improvements which can be attributed
to the entire water and/or sewer system and are distinguishable from
improvements which are attributable to the planned improvements made
for the benefit of a parcel or parcels. The Town may determine and
allocate a portion of the value of improvements to a system-wide benefit.
The Town of Salem, Rockingham County, New Hampshire, a municipality
of the State of New Hampshire, acting by and through its Selectmen
with the Town Manager serving as their designee.
Fees charged to individual customers for their measured use
of a service or consumption of a product.
Extension of an existing water or sewer main beyond the then
current extent of the system so as to make service available to the
abutters to the extension.
The revenue collected from those who derive special benefit
from the sewer system to pay for the cost of the demand on, and availability
of, the Town of Salem's water facilities, including the management,
creation, improvement, extension and expansion of treatment, pumping,
storage, protection of supply, and transmission facilities that generally
provide water to the local distribution networks.
A.
Demand and benefit assessment established. Water and sewer demand
and benefit assessments are hereby established and may be revised
from time to time by the Board of Selectmen. The application of this
chapter shall be required of all applicable properties coinciding
with the date of the adoption.
B.
Assessment payment to be made. Payment is considered as made at the
time, manner and form as established by the Town Finance Department.
Payment shall include the option of a lump sum payment or the establishment
of a payment plan in accordance with the terms and conditions established
by the Town.
C.
Payment options. The payment options are pursuant to the Town procedures.
In the event of the sale or transfer of the assessed premises by the
owner, the obligations established shall transfer to the successor
owner. As provided for in RSA 38:22, the Town may place a lien on
the property for nonpayment of the demand and benefit assessment.
D.
Assessment allocation of demand and benefit.
(1)
The cost of expanding the system to those areas of Salem where it
is economically appropriate has been estimated based on design and
economic analyses. The increase in demand for water supply and demand
on the capacity of the existing sewer system has also been estimated.
The cost of providing a unit of capacity of water supply, or a unit
of capacity of wastewater disposal, has been determined from those
capacity and cost estimates. The unit capital cost of water supply,
treatment capacity, and distribution has been determined as a dollar
value per gallon per day of water delivery capacity. The unit capital
cost for wastewater collection and transmission facilities has been
determined as a dollar value per gallon per day of demand. Based on
these values the following is the allocation of costs as expressed
by the document titled "Town of Salem, NH Town-wide Sewer and Water
Buildout Estimated Costs and Demand Flows":
(a)
Fifty percent of the capital cost for water and sewer service
will be assessed to those who are newly served by the water and sewer
system, and to those who increase their demand on the system, based
on the unit cost for providing water supply and wastewater disposal
capacity to meet the increased demand. Each user of new or increased
capacity will be assessed a charge based on the demand required by
that user, as expressed by the document titled "Flow Demand and Benefit
Values" and the unit capital cost to provide that capacity or meet
that demand.
(b)
Fifty percent of the capital cost for providing new or increased
water or sewer service will be paid by water and sewer rate revenues
that are based on the amount of water withdrawn from or wastewater
discharged to the system by all of the customers connected to the
system.
(2)
Recognizing that it is not possible to exactly balance the capital
cost expenditure and assessment revenue at all times, the capital
costs and debt service not paid by the assessments will be paid from
water and sewer rate revenues. It is intended and expected that, over
the duration of the debt service period for the construction programs,
the assessments and allocations of costs will approximate the intended
ratios. Notwithstanding the references to water and sewer rates together
in this section, the water and sewer funds are and will remain separate
and the assessments for each are determined separately.
E.
Wavier for related assessments. Waivers from this chapter, whether
now or in the future, may be allowed for a property or properties
with payment agreements with the Town, as part of the overall Town-wide
water and/or sewer projects, or as an agreement between the Town,
as recognized and established through the Board of Selectmen, and
resident property owners, for construction of water and/or sewer infrastructure.
Such waiver may be granted by a vote of the Board of Selectmen at
a public meeting. The wavier shall apply to the one agreement and/or
prior payments for the specific properties which are part of said
payment agreement or other agreements and not future extensions, expansions
or changes to the property or properties. Upon request by the Board
of Selectmen, the Finance Department shall determine applicable projects
defined by a betterment and/or agreement and shall supply a list of
applicable properties to the Board for consideration of the waiver.[1]
A.
Assessment for new users. The owner of any land or structure which
connects to or is within an area of an available utility extension
of the Town sewer and/or water system shall pay a water and/or sewer
demand and benefit assessment as applicable at the time of application
for the certificate of occupancy pursuant to municipal codes herein.
Where the new connection does not require a certificate of occupancy,
then assessment shall occur at the time that the water and/or sewer
is made available to the property. Properties served by utility extensions
conducted by private concerns without Town funds shall be charged
a demand and benefit assessment at the time of the certificate of
occupancy or connection. In all cases there shall be a minimum charge
in accordance with the document "Flow Demand and Benefit Values."[1]
B.
Assessment for changes in use. If change in use as defined by the
document "Flow Demand and Benefit Values" is reasonably expected to
increase the demand on water consumption and sewer discharge, then
the owner of the structure shall pay an additional water and/or sewer
demand and benefit assessment based on the increase in the demand
as compared to the prior use or expansion to the new use or expansion.
The change in the use of the land and/or structure shall be determined
to occur at the time of application for the certificate of occupancy
for such change. Where the change may not require a certificate of
occupancy the change shall be considered to occur at the time of change
of use or other like permit from the Town of Salem.[2]
C.
Assessment for change in operations/equipment. If change, alteration
or modification in equipment, area and/or operations, for a commercial
account, is reasonably expected to increase the demand on water consumption
and sewer discharge by 10% over the average flow in the highest billing
period, then the Town shall assess the owner an additional water and/or
sewer demand and benefit assessment based on the increase in the demand
as measured from the prior billing period. For the purpose of this
section, increase in demand shall not include increase or peaks associated
with accidental increase by emergency circumstances which result in
the release of water or inflow into the sewer.
D.
Credits in lieu of system improvements. Where as a condition of the
Town for making connections to the sewer and/or water system the property
owner, developer, or other representative makes improvements to the
water and/or sewer system within the public domain, and where the
improvement is determined by the Town to be of a system-wide benefit
to the water and/or sewer system and not directly related or attributed
only to the development, such improvement may be used as a direct
credit to lower the amount of the initial demand and benefit assessment.
The credit may not be applied to other projects throughout the community
and is limited to the original project from which the system-wide
improvements resulted. The amount of such credit, as approved by the
Town, shall be based on the completed construction costs for those
system-wide improvements only. Such determination shall be reviewed
and certified by the Town, which may use reasonable standards and
make modifications and amendments to the construction costs. The Town
may allow for system-wide construction credit that may occur within
five years of the first connection where the Town requests a delay
in the system-wide construction. Such credits shall serve to lower
the obligation of the initial assessment and shall not be distributed
as a payment or refund. The Town will not provide direct payments
for credits that are greater than the demand and benefit assessment.
Approval of credits shall occur by a petition filed by the property
owner or duly authorized representative and through a public hearing
before the Board of Selectmen, with evidence in the manner and form
as prescribed by the Town. The Board of Selectmen in reaching its
determination may hire consultants at a reasonable cost to be borne
by the petitioner.
E.
Petition for adjustment of assessment. If within one year of the
payment of the first demand and benefit assessment charge the property
owner, of property with a commercial account, with a petition to a
public hearing of the Board of Selectmen can prove that the use of
the property is less than the demand as defined by the Town of Salem,
the Board may choose to adjust the assessment. The Board of Selectmen
in reaching its determination may hire consultants at a reasonable
cost to be borne by the petitioner.
F.
Reduction refunds not issued. Notwithstanding Subsection E above, no refund of a demand and benefit assessment will be issued by the Town on account of reduction in the consumption of water or sewer demand.
G.
Town demand review. The Town reserves the right at any time to review
demand on the water and/or sewer system placed by properties, and
if as a result of the review the Town finds increases, the Town may
choose to levy an assessment as deemed appropriate.
H.
Municipal exemption. This chapter shall not apply to the facilities
of the Town of Salem, its municipal and school departments, and Town-created
public bodies as identified on a list approved, and as may be amended,
by the Board of Selectmen at a regular meeting. (Note: Referenced
list is on file with the Board of Selectmen.)
A.
Assessment regardless of connection. Except as otherwise specified
in this section, a service shall be installed to service each parcel
of land abutting newly constructed utility extensions. Each parcel
so serviced shall have a demand and benefit assessment applied regardless
of a connection status. In the case of private utility extension which
is not funded by the Town, the Board may allow demand and benefit
assessment at the time of connection where the properties are incidental
to the route and not part of the development plans.
B.
Subdividable parcels. Where frontage is sufficient to support subdivision
along the street, a sufficient number of services may be installed
at the owner's request to service future parcels. Each service shall
constitute a separate assessment.
C.
Large land tracts. Where large tracts of land abut the utility extension,
owners may be granted larger than typical services for which they
shall be required to pay the incremental difference in cost thereof
prior to installation. The Town reserves the right to reject requests
it deems inappropriate. Should the size of the service requested be
unsuitable for actual development at a later date, then the full costs
of changing the size or type of the service shall be borne by the
property owner.
D.
Nonbuildable parcels. A property owner may petition the Board to
request a determination that his property is impacted in such a way
by zoning, wetlands, topography, or other fundamental restrictions
to render it not buildable. The Board may act to remove the property
from requiring a demand and benefit assessment, provided that the
property owner enters onto his deed in perpetuity a development restriction
acceptable to the Board. The Town reserves the right to reject requests
it deems inappropriate. If a request for a service to a parcel originally
deemed nonbuildable is made after the utility improvement construction
has passed by the subject property, such a service shall be installed
and the full cost of the connection shall be born by the owner who
shall also pay a demand and benefit assessment.
E.
Assessment term. Such parcel assessments shall be billed in equal
portions annually for a period of time equal to the term of the related
debt, but not longer than 20 years. In the event no debt is incurred,
the Board shall set a reasonable term. Such bills shall be issued
in accordance with Town policies.
F.
Recording required. Demand and benefit assessments shall be recorded
in the Rockingham County Registry of Deeds and shall serve as a lien
on the assessed property as provided for in RSA 38:22. The recorded
document shall stipulate that upon the transfer of a parcel bearing
a demand and benefit assessment, the unpaid portion of the assessment
shall also transfer to the new owner.
A.
Notices to owners. Owners of property shall be notified by mail of
the utility extension at least 120 days prior to the availability
of service. Owner requests for correction to the property status indicated
by the Town and/or alternate service installations shall be in writing
and received by the Town not more than 30 days after receipt of such
notification. Such requests shall be subject to evaluation by the
Town.
B.
Utility extension extent. The Board shall determine the geographic
extent of the utility extension in which it intends to apply demand
and benefit assessments applicable to each parcel. Inclusion of a
planned utility extension in a statutory bond or budget hearing shall
constitute compliance with this section.[1]
