WILTON — Rate increases may be necessary to pay for upgrades to the wastewater treatment plant — both those that have been done and some that are needed — selectmen were told Tuesday night.

“We’re in need of some money, and we’re going to be in need of some more money,” Superintendent Clayton Putnam told the board. “The sheer cost of rehabilitating the plant at $10.8 million, it just blows my mind that it takes that much money.”

Putnam, who is retiring, and incoming superintendent Justin Futia, presented the quarterly report and 2016 budget for the water district and wastewater treatment plant. Putnam said a rate structure that can support the town’s upgrade to the treatment plant should be put in place.

The $10.86 million upgrade of Wilton’s wastewater treatment plant on Davis Court has been in the works since 2009. The project has been broken down into two phases, and one of the last $198,049 debt payments on a phase one loan was made in September.

At a special town meeting in October, town residents approved accepting a $2.75 million federal loan and a $1.35 million grant from the U.S. Department of Agriculture to complete phase two of the project.

Originally, Putnam had envisioned that spending the federal money would stagger the loans and the grants the district received for both phases of the project. However, at Tuesday’s meeting he said it was discovered that in order to spend any of the grant money, the town must apply for all of the loans first.

Putnam because of the upcoming and future debt payments that will need to be made on the wastewater plant, rates may have to increase for each loan. He said that could amount to $40 to $50 per quarter per customer to close out the debt payment on the second loan, and another $30 per quarter per customer on the third loan.

Any changes in the rate structure would need approval by residents at Town Meeting.

The district is scheduled to close on a second loan in May or June, according to Putnam, and one year from then the district will have to make its first $140,000 payment, for which it hasn’t started collecting.

Phase one of the upgrade to the treatment plant, built in 1978, included maintenance and upgrades to the town’s 26 miles of sewer piping and 31 pump houses. Phase two upgrades will include two new screw pumps that lift water into the plant, replacing the current inoperable grit removal system, replacing the fine-screen filter system and upgrading the biological treatment process to more modern standards.

Putnam has been superintendent of the water district for 28 years. Friday will be his last day in the job. The board said it appreciated of Putnam’s years of service, and he expressed his gratitude for being able to do the job.

“It’s been a pleasure. The town of Wilton has been very good to work for,” Putnam said.

This story has corrected references to rate hikes to make it clear they are wastewater rate hikes.

Lauren Abbate — 861-9252

labbate@centralmaine.com

Twitter: @Lauren_M_Abbate

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