MILFORD – The U.S. Department of Agriculture has awarded the town $1.6 million to replace public pump stations and sewer lines, but before the money can be used, residents must first vote to accept the funding.

The item will be voted on at this year’s annual town meeting, slated for 7 p.m. June 20, at the Lewis Libby School.

A public hearing is set for 7 p.m. May 24 at the town hall.

The USDA funding is part grant, about $480,000, and the remaining $1.12 million is a 30-year low-interest loan that will be repaid by taxpayers.

There is expected to be some controversy over the project because one-half of the town is on public septic, while the other half has private systems.

“It’s one of those issues where, who pays for it?” Town Manager Jim Hancock said Thursday. “If the sewer users took it on themselves, it would probably double their bills.”

The item will be voted on as a townwide project that will affect all taxpayers. The entire improvement project is expected to cost $1.75 million. The town has to provide the $110,000 beyond what is funded by the USDA, but Hancock said that money already is set aside in the sewer reserve account.

“The project has to be done,” Hancock said. “Those sewer lines are 30-plus years old.”

The town voted in 1972 to take on the operation as a federally mandated project that the town go on public sewer, but little to no updates or repairs have been done since.

“With the grant money, it’s about a 30 percent discount if you look at it that way,” Hancock said. “Who knows whether that money will ever be there again.”