Chapter 40-T: Building Our Infrastructure
 

Chapter 40T - Not a New Concept

The US Census for 2002 says that we already have at least 400 specialized districts in Massachusetts. Can anyone recall any problems with these districts? Some were created under General Laws and others by special legislation approved and requested by our cities and towns. They do their job quietly by borrowing and paying for improvements that benefit particular neighborhoods in a community.

Please visit the Mass DEP site at www.mass.gov/dep/water/wastewater/mgtdists.pdf.

You will see that DEP recommends that communities consider what it calls “Management Districts” using betterment fees or special assessments to fund at least part of our wastewater treatment needs. Chapter 40T is essentially a management district to finance infrastructure improvements through betterments. Betterment fees are not subject to Proposition 2½.

Chapter 40T enables property owners, with local approval, to self-finance a variety of infrastructure needs. The proposed legislation builds on a long history of using betterments and assessments in Massachusetts.

  • In 1870, the General Court enacted Ch. 40, Section 44, to permit towns to create “improvement districts” in a portion of the community with 1000 or more residents to provide needed infrastructure and services such as street lighting. This shows legislative recognition that towns should enjoy a local option to create bodies politic and corporate to provide and pay for special needs unique to that neighborhood.
  • One of the many special act districts meeting localized infrastructure needs is the East Bedford Industrial Sewer District established by Ch. 305 of the Acts of 1984. This District is very similar to a Ch. 40T District. The bonds issued by that District have been retired and the sewer extension long completed. Bedford’s experience is described as follows:

As Director of Public Works for the Town and a Sewer Commissioner, I am very familiar with the workings of the District. I do not recall any instances when the District created any burden on the Town or the users of the sewer improvements. The use of the special district did not generate any complaints from the users, Town officials or the citizens of Bedford. In fact, we had considered using the District to fund road improvements but have identified other funding sources.” - Quotation from the Bedford Director of Public Works, Richard Warrington.