DIXFIELD — A $1.8 million upgrade of water, sewer and drainage systems on six streets will have four funding sources, selectmen told residents at Monday night’s public hearing.

The project was approved by voters last July.

The town is applying for $500,000 from the Community Development Block Grant program. The hearing at Ludden Memorial Library was to discuss the application. The money would go toward the project on High, Pine, North, Kidder and Ellis streets and Dix Avenue, Town Manager Linda Pagels-Wentworth said.

Selectmen said there is a $110,000 loan from the Clean Water State Revolving Fund, a $676,000 loan from the Drinking Water State Revolving Fund, $1 million from the Maine Bond Bank and the $500,000 CDBG grant, if the town supports it and the state awards it.

“The grant money will not have to be paid back,” Pagels-Wentworth said.

Resident Dan McKay asked selectmen whether they would continue with the project if the town doesn’t get the $500,000 grant.

They said voters gave selectmen authority to borrow money for the project when they approved it last year.

Pagels-Wentworth said engineering work is 85 percent complete.

McKay asked whether money for the project would be raised through taxation.

Pagels-Wentworth said the town water and sewer departments would pay back the loans over 20 years.

One requirement for the CDBG grant was a door-to-door survey to ensure that at least 51 percent of the residents in the construction area are low to moderate income. Pagels-Wentworth said the number of above 51 percent.

The CDBG application is due Friday, March 7.

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