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FARMINGTON – Officials learned that the town received a $215,000 loan and a $90,000 grant from the federal government Thursday, the same day they awarded a contract to replace sewer mains the money will pay for.

Selectmen Mary Wright, Dennis Pike and Charlie Murray voted to approve a bid from E.L. Vining & Son Inc. of Farmington for $233,677 to replace mains on Lincoln Street that are old and undersized. The other bidder was Snowman Oil and Soil of St. Albans for $284,710.

The loan and grant from the U.S. Department of Agriculture’s Rural Development agency was announced by Sens. Olympia Snowe and Susan Collins in a news release issued late Wednesday.

“Federal funding plays a crucial role in providing rural communities with necessary infrastructure and support,” the senators said in the statement. “As a result of this recent funding, jobs will be created and community enhancement projects will be able to move forward.”

Also receiving a $23,000 community facility grant was the New Portland Community Library, for equipment and furnishings.

“It’s good news,” Town Manager Richard Davis said Thursday. “Everything seems to be falling into place on these projects,” he said.

The Lincoln Street sewer project runs through the University of Maine at Farmington. The college agreed to pay 25 percent of the cost, so the grant will be divided proportionately between the town and the school, Davis said.

Selectmen at their next meeting on June 14 will discuss scheduling a special town meeting for residents to vote on accepting the $215,000 loan.

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