MEXICO — Selectmen on Tuesday set a joint meeting with the Water District trustees and Sewer District trustees for next week to plan an application for a federal grant that could ensure new sewer and water lines for three town streets.

They also accepted the resignation of Mexico police officer Dustin Broughton.

Town Manager John Madigan said the three boards will receive an update from engineering firm A.E. Hodsdon of Waterville, as well. The town is in the midst of a major local road improvement program financed by a $2.9 million bond.

He said the town is applying for a $500,000 Community Development Block Grant that, combined with other funds, would enable the installation of water and sewer lines on South Main and Alder streets, and water lines on a portion of Osgood Avenue.

The utilities project is part of an overall $1.4 million upgrade for the three streets. Once the utility lines are installed, the streets will be reconstructed and paved.

The three boards must submit a letter of intent to apply for the CBDG funds no later than Dec. 3. The special meeting is set for 5 p.m. Nov. 30.

If the grant is received, work will begin in the spring.

The board also agreed to advertise for a Maine Police Academy trained officer to replace Broughton, who has been with the department for nearly five years.

Until a new officer is hired, Chief James Theriault said he and the department’s reserves will fill in.

In other police news, Theriault said his department received $2,600 from a federal Justice Assistance Grant to build a witness/victim interview room at the Police Department. The labor is donated by police officers.