OXFORD — A pending application for nearly $24 million in federal funding will determine whether the town expands sewer system construction into residential areas.

In an application sent to the United States Department of Agriculture’s Rural Development Office last week, the town is seeking $23,890,000 in funding to lay sewer pipes into rural areas.

The town has already borrowed money and designed plans to build the system for commercial and some residential users along Route 26; the $24 million sum is a combinations of loans and grants will expand lines into more rural sectors, reaching more residents.

Without a portion of the funding, the town will not be able to pay down the loans required for construction.

Selectmen plan to hold a April 18 public hearing to discuss its request, and the implications on residents and property owners.

In an interview on Monday, Town Manager Michael Chammings said at most the federal government will fund 45 percent of the request – the remainder would come through loans, which the town would likely borrow and pay back.

Chammings said the application process is competitive and funding is far from certain.

“We need federal grant money for this project,” he said.

“They may give you five percent, they may offer you 45 percent, they may offer you nothing – they may say they’re out of money. We don’t know; it’s a competitive grant applications process,” Chammings continued.

Last April, Selectmen approved borrowing $13.7 million from the Maine Department of Environmental Protection, which provides funding to municipalities designing waste-water facility projects. Months earlier in December 2012, Oxford voters authorized selectmen to borrow up to $20.2.

The project is divided into two phases. The first, already full-funded, includes the $1.2 million construction of a state-of-the-art waste-water treatment facility and installing miles of sewer pipes along Route 26 from the Mechanic Falls Town line up to Fore Street.

The second phase calls for installing lines north of Fore Street and west along King Street toward the town office.

“If we don’t get any grant funding toward it, we cannot [move] to phase two,” Chammings said.

Last month, hotel developers constructing a $15.4 million Hampden Inn and restaurant across from the Oxford Casino announced construction will be timed to coincide with the launch date of the sewer.

Last week, Brent Bridges, Senior Vice President at Woodard and Curran, told selectmen the sewer project should break ground around Memorial Day. The firm has been providing design plans for every phase of the project.

Bridges said bidding for the project will likely begin in a month. The firm is also finalizing specifications for the waste-water treatment facility, which will use ultraviolet light – not chemicals to sterilize incoming water.

The town has already purchased three parcels from property owners to install pump stations, and is waiting on one more.

Altogether, it has a $250,000 budget for property purchases; on Monday, Chammings estimated the total cost of land and other fees totaled $180,000 so far.

OXFORD — A pending application for nearly $24 million in federal funding will determine whether the town expands sewer system construction into residential areas.

In an application sent to the United States Department of Agriculture’s Rural Development Office last week, the town is seeking $23,890,000 in funding to lay sewer pipes into rural areas.

The town has already borrowed money and designed plans to build the system for commercial and some residential users along Route 26; the $24 million sum is a combinations of loans and grants will expand lines into more rural sectors, reaching more residents.

Without a portion of the funding, the town will not be able to pay down the loans required for construction.

Selectmen plan to hold a April 18 public hearing to discuss its request, and the implications on residents and property owners.

In an interview on Monday, Town Manager Michael Chammings said at most the federal government will fund 45 percent of the request – the remainder would come through loans, which the town would likely borrow and pay back.

Chammings said the application process is competitive and funding is far from certain.

“We need federal grant money for this project,” he said.

“They may give you five percent, they may offer you 45 percent, they may offer you nothing – they may say they’re out of money. We don’t know; it’s a competitive grant applications process,” Chammings continued.

Last April, Selectmen approved borrowing $13.7 million from the Maine Department of Environmental Protection, which provides funding to municipalities designing waste-water facility projects. Months earlier in December 2012, Oxford voters authorized selectmen to borrow up to $20.2.

The project is divided into two phases. The first, already full-funded, includes the $1.2 million construction of a state-of-the-art waste-water treatment facility and installing miles of sewer pipes along Route 26 from the Mechanic Falls Town line up to Fore Street.

The second phase calls for installing lines north of Fore Street and west along King Street toward the town office.

“If we don’t get any grant funding toward it, we cannot [move] to phase two,” Chammings said.

Last month, hotel developers constructing a $15.4 million Hampden Inn and restaurant across from the Oxford Casino announced construction will be timed to coincide with the launch date of the sewer.

Last week, Brent Bridges, Senior Vice President at Woodard and Curran, told selectmen the sewer project should break ground around Memorial Day. The firm has been providing design plans for every phase of the project.

Bridges said bidding for the project will likely begin in a month. The firm is also finalizing specifications for the waste-water treatment facility, which will use ultraviolet light – not chemicals to sterilize incoming water.

The town has already purchased three parcels from property owners to install pump stations, and is waiting on one more.

Altogether, it has a $250,000 budget for property purchases; on Monday, Chammings estimated the total cost of land and other fees totaled $180,000 so far.