MONSON – Monson Utilities Water District customers will be asked to borrow $148,000 during a referendum next month to upgrade the more than 60-year-old water system.

The district was notified earlier this year that it had been approved for a $422,000 grant and a low-interest loan for $148,000 through the USDA Rural Development program to help fund the improvements, according to Town Manager Julie Anderson.

“We’re really excited about receiving the grant and we’re hoping the Monson Utilities District customers will approve the borrowing of the money to get the water improvements that we need to get done,” Anderson said this week.

The referendum for the loan will be held from 10 a.m. to 8 p.m. Monday, Aug. 18, in the meeting room at the Municipal Building.

The water system, which includes a drilled well and piping, serves about 120 customers.

While the grant and loan will provide a system upgrade, an increase in rates was needed to help provide a working budget, according to Anderson. The district requested and received permission for a rate increase, which went into effect on July 1. The minimum increase went from $40 to $51.66 for up to 900 cubic feet of water, according to Anderson. The last rate increase was in 2004.

If the district’s customers approve the loan, the grant and loan will help fund improvement of the wells, and the construction of a distribution building and booster station to help improve water pressure, Anderson said.

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