And Jonah on top of this the truth of the matter is that virtually every single town in Vermont has plenty of bonding power to make investments like this. But oh my God, we might add a nickel to the tax rate. Oh my God.
That is the tricky part - getting residents on board. Yes, it increases taxes in the short term, but it also comes with the ability to capture more tax revenue long term, expanded offerings from the town, and more business/economic activity.
Thanks for this excellent post Jonah. It's not hypothetical, bur rather the VT reality. I guess it's another reason why Chittenden county is gaining so much population. I might disagree with your expectation of continued $ going to municipalities. Yes, the '22 infrastructure bill certainly provides $ for sewer, but the odds of the feds providing $ when this expires is tiny. The deficit, combined with higher interest rates and a strong resistance to raising taxes precludes another spending spree like we've seen for the past 4 years. Not a political statement, just a reasonable observation. For so many reasons (equity, water quality, land conservation etc.) we could really use more sewer systems.
Thanks Dan. Interesting point on funding. Could definitely see that. My sources are anecdotal and I'm not sure exactly what the sources of funding would be. That said, there seems to be a continued stream of funding to promote dense housing development and, well, this is a precursor to achieving that.
I'm no expert on municipal tax schemes, but TIF seems to be commonly applied for related work. I'd think that it could be used to create sewer systems and one could model the expected (tax) gains from new development. I believe connection fees are also common, which could also help pay back loans used to finance sewer. As you've experienced, I'm sure you'd happily pay 5K+ per household to connect to a sewer system instead of dealing with the costs and lost land associated with septic.
Absolutely. I think any builder would prefer hookup fees instead of on site septic. Especially in denser areas. As for TIF, I’m not sure if the mechanism exists in smaller towns like Fairlee. I thought that was only allowed for a select few across the state.
Quick perusal of this says nothing about population. Killington has one, a small town (at least based on actual residents). "Public infrastructure", which certainly must include water and sewer. I think it's a tougher sell in small towns, as it could perhaps lead to a substantial increase in population, something folks get worried about. In most of the US school capacity would be a concern, but here it would likely lead to more efficient schools as ours have few children, raising costs/pupil https://accd.vermont.gov/community-development/funding-incentives/tif
Oh very cool. Killington is about the same population as Fairlee for year round residents, maybe smaller. Will need to circulate this further around here, thanks for sharing.
And Jonah on top of this the truth of the matter is that virtually every single town in Vermont has plenty of bonding power to make investments like this. But oh my God, we might add a nickel to the tax rate. Oh my God.
That is the tricky part - getting residents on board. Yes, it increases taxes in the short term, but it also comes with the ability to capture more tax revenue long term, expanded offerings from the town, and more business/economic activity.
Red Clover bikes should move into 512! That is a gorgeous spot for a bike showroom.
Great article. Elephant in the room issue in terms of small town development. Thanks for the information and sharing your experience.
Thanks Alan!
Thanks for this excellent post Jonah. It's not hypothetical, bur rather the VT reality. I guess it's another reason why Chittenden county is gaining so much population. I might disagree with your expectation of continued $ going to municipalities. Yes, the '22 infrastructure bill certainly provides $ for sewer, but the odds of the feds providing $ when this expires is tiny. The deficit, combined with higher interest rates and a strong resistance to raising taxes precludes another spending spree like we've seen for the past 4 years. Not a political statement, just a reasonable observation. For so many reasons (equity, water quality, land conservation etc.) we could really use more sewer systems.
Thanks Dan. Interesting point on funding. Could definitely see that. My sources are anecdotal and I'm not sure exactly what the sources of funding would be. That said, there seems to be a continued stream of funding to promote dense housing development and, well, this is a precursor to achieving that.
I'm no expert on municipal tax schemes, but TIF seems to be commonly applied for related work. I'd think that it could be used to create sewer systems and one could model the expected (tax) gains from new development. I believe connection fees are also common, which could also help pay back loans used to finance sewer. As you've experienced, I'm sure you'd happily pay 5K+ per household to connect to a sewer system instead of dealing with the costs and lost land associated with septic.
Absolutely. I think any builder would prefer hookup fees instead of on site septic. Especially in denser areas. As for TIF, I’m not sure if the mechanism exists in smaller towns like Fairlee. I thought that was only allowed for a select few across the state.
Quick perusal of this says nothing about population. Killington has one, a small town (at least based on actual residents). "Public infrastructure", which certainly must include water and sewer. I think it's a tougher sell in small towns, as it could perhaps lead to a substantial increase in population, something folks get worried about. In most of the US school capacity would be a concern, but here it would likely lead to more efficient schools as ours have few children, raising costs/pupil https://accd.vermont.gov/community-development/funding-incentives/tif
Oh very cool. Killington is about the same population as Fairlee for year round residents, maybe smaller. Will need to circulate this further around here, thanks for sharing.