WILTON – Selectmen gave Water and Sewer Department Superintendent Russ Mathers the go-ahead to include $2,500 in next year’s Water Department budget for a water rate survey when they met Tuesday.

At last year’s town meeting, taxpayers questioned why they have to pay $144,000 for the rental of water hydrants. The town turned to the Maine Rural Water Association for legal advice about what would happen if taxpayers didn’t want to raise that amount and how the amount could be lowered.

The hydrant rental fees are a percentage of the rates those who use town water pay and is regulated by the Public Utilities Commission. Those rates have not gone up for several years in Wilton. Mathers said the town could be sued for not meeting its obligation if it did not come up with the funds for hydrant rental.

Mathers said an alternative is to have a comprehensive rate study completed to see if water rates can be lowered without lowering the level and quality of service the town gets. With lowered rates for those who use town water will come lower hydrant rentals for all taxpayers.

The Water Department is funded solely by ratepayers. None of the costs are paid by taxes, with the exception of the hydrant rental fees. Costs for the project would come out of the Water Department budget and not affect municipal taxes.

Mathers said Wilton is one of two towns in the state that have requested such a study in about 20 years. Wilton did an in-house water rate analysis about 5 years ago.

In other business, selectmen approved sending an application to the state for funds to improve the appearance of downtown buildings. Town Manager Peter Nielsen will send a three-page narrative to the Maine Department of Economic and Community Development. That department has a new faade grant, Nielsen said.

Nielsen said last summer a property owner contacted him to ask if there were any grants available to repair his building. In August a citizen’s planning committee, whose role was to help determine what keeps the town from encouraging businesses to locate there and possible solutions, recommended improvements to the downtown area. The committee feels the way some buildings look makes a bad first impression.

Nielsen said he sent out 21 letters to downtown property owners. He said he received seven ideas for possible projects, with plans and estimates. He included these ideas in the grant application.

Nielsen said the town plans to apply for more than $150,000 for improvements. The application will ask for 15 percent in contingency funds to include any projects that may come through late. There are no local matching money requirements as with some other state grants. The total amount available for towns under the grant is $350,000.