A sewer betterment assessment is a special tax that is assessed by the Lancaster Sewer District Commission (LSDC) to properties that have been "bettered" by the construction of a public sewer.  Betterment assessments are a form of taxation, and, until paid, constitute a lien upon the land assessed. Service by a public sewer is an improvement over on-site wastewater disposal (i.e. septic systems, etc.). Therefore, when a municipality constructs public sewers, the value of those properties abutting the sewer line are said to have been improved or "bettered".  In Massachusetts, sewer betterments are governed by Chapters 80 and 83 (excluding Sections 1 and 2 of Chapter 80) and are under the jurisdiction of the Department of Revenue. Sewer betterment assessments are monies intended to pay back all or a portion of the debt service of the "local share" of the sewer construction and associated engineering capital costs. There are two (2) basic methods allowed by MGL for calculating sewer betterment assessments; the “fixed uniform rate" method and the "uniform unit" method.

The LSDC approved the "uniform unit" method, which defines each property as a number of "sewer units" and divided the assessment costs by the total number of sewer units included in the project. A "sewer unit" is defined as a single-family residence. Therefore, a two-family residence is equal to two (2) sewer units, three-family to three (3) sewer units, etc. Commercial, industrial and vacant properties are calculated into "single family equivalents" to include them in the assessment. This is done by calculating average water usage for developed properties based on 310 CMR 15 (Title 5).  Undeveloped properties are assessed a single unit betterment with any future subdivision subject to additional betterments and fees equal to the number of new lots.

The sewer betterment assessment is a one time special tax that can be paid in one lump sum or apportioned up to a maximum of twenty (20) years. Those property owners who do not pay in full at the time the betterment is assessed will have the remainder of their assessments amortized over the next twenty (20) years at a rate of five percent (5%) interest added annually to the unpaid balance.  A lien recorded at the Worcester County Registry of Deeds listing the unpaid betterments is placed on the properties receiving the assessment. This filing entitles the Lancaster Sewer District with the appropriate mechanism to assess and collect the sewer betterment. The lien is discharged when the assessment is paid in full or will expire automatically two years after the final payment is made.

Betterment assessment bills are invoiced twice per year in the first and third quarters of the fiscal year.  Payment is due thirty days after the date of issuance.

See our Betterment FAQ for answers to frequent questions.

See also:
Policy Memorandum - Betterment Abatement Requests
A policy memorandum regarding the required timeframe for requesting an abatement.

Policy Memorandum - Betterment Prepayments
Policy regarding the calculation of interest after a prepayment has been made.