NEW GLOUCESTER — A public hearing on a proposed $2.35 million town water system is scheduled for 7 p.m. Monday, Jan. 7, at AMVET Post No. 6 Hall on Route 100.

A special town meeting to vote on an interlocal agreement with the New Gloucester Water District, enact the Town of New Gloucester Upper Village Water Service Ordinance and convey easements to the New Gloucester Water District is planned at 7 p.m. Monday, Jan. 14, at Memorial School on Route 231. Those issues will be the subject of the public hearing.

The town water system is planned from the New Gloucester Fairgrounds on Bald Hill Road to the Upper Village along a section of Route 100, covering 40-some houses and businesses. It was proposed after private wells in the business district were contaminated by chemicals going back to the 1980s.

The town was recently notified it will receive $1,365,827 in grants toward the $2,355,428 needed for the project.

Voter approval is sought for:

* An $800,000 U.S. Department of Agriculture Rural Development loan over 40 years at 2.12 percent interest.

* A $189,601 loan for 20 years to pay for hook-ups to the system.

* A total of $8,000 for fire protection for one year.

filed under: