CALAIS – The city will make major upgrades to its wastewater system, thanks to a $750,000 federal grant and loan package, the city manager announced Tuesday.

The funding package, involving $450,000 in loans and a $300,000 grant, will be used to replace three pump stations and make other improvements to the system.

The money will come through the U.S. Department of Agriculture’s Rural Development Agency, U.S. Sens. Olympia Snowe and Susan Collins announced.

Last year, the city was fined more than $55,000 for violations in its system that began five years earlier.

In May 2002, more than 100,000 gallons per day of raw sewage spilled into the St. Croix River.

An estimated half-million gallons of sewage overflowed in underground storage tanks at the facility and into Union Brook before the problem was fixed. The city entered into a consent agreement with the state Department of Environmental Protection and agreed to pay the fine and fix the system.

City officials hope the federal funds will help solve some of the 35-year-old system’s problems.

City Manager Linda Pagels said the city operates 10 pump stations. Three of the stations, on King, Union and Steamboat streets, are responsible for the majority of the city’s past pump station failures.

The stations on King and Union streets are the city’s largest pump stations. They were installed in 1969.

“Continued overflow of the pump stations became unacceptable, and DEP required that these three pump stations be addressed immediately,” she said.

As part of the project, abandoned equipment and debris at the wastewater treatment plant will be removed. “Some of the debris dated back to 1968, which was when the facility was constructed,” Pagels said.

Because the city was under pressure to get the work done, Pagels said, the city received interim financing. She said the federal funds will be used to pay off that financing.