Allenstown officials hope the $800,000 in federal stimulus money is enough to sell voters on a $1.63 million plan to upgrade a wastewater treatment plant.

The 25 Allenstown residents who attended last night's meeting on the matter made clear by a unanimous show of hands that they wanted a traditional town meeting forum when it comes up for a vote before the town next month. Allenstown, an SB 2 town, has rejected bond articles to upgrade the Suncook wastewater treatment plant the past three years in a row.

Last month, the state offered up $39 million to 33 towns for wastewater improvements. For Allenstown, the 10-year bond would cover half the project's cost through a low-interest revolving fund loan from the state. According to the facility's Superintendent Dana Clement, the sewer department will ideally be able to foot that cost, offsetting it from taxpayers.

"Allenstown would assume responsibility of the state revolving fund loan, and the payments of that loan would come from the sewer department," Clement said last night. "The intention is not to have any impact on taxes."

With improvements to the facility, it would be able to increase output to 300,000 gallons per day, he said, and create 1,200 residential hookups in Allenstown and Pembroke, which also uses the plant. There is currently a moratorium for new hookups in both towns, meaning new homes and businesses can't be built without providing their own septic systems.

Without the upgrades, Clement warned, the tax base will remain "stagnant."

With the $475,000 in the department's surplus account, cash generated from new hookups and money saved by replacing the water system should cover the 10-year bond's cost, plus interest, he said.

"We definitely feel like we have that ability. . . . I think the sewer commission is committed to make all of the bond payments," he said. And while "it's not in writing . . . we're anticipating that if we can remain competitive, we would continue to generate revenue."

Residents last night said they wanted more guarantees. Judy Silva asked about a backup plan. If there isn't incoming money that could be used to pay the bond, she said, there should be a fallback.

"People are trying to figure out what the impact would be," Silva said, proposing an agreement be drafted by the town and sewer commission. "I think that would set up a situation where the voters . . . would have the confidence that there is money available."

Chairman Tom Gilligan told residents guarantees were hard to give but said he believed if the sewer commission was willing to enter a binding agreement with the town, a majority of voters would support it.

"We want to give this the best chance to pass," Gilligan said. "This is going to be the fourth attempt in three years to do something, anything about this."

Harold Paulsen, Pembroke's sewer commissioner, said if Allenstown residents needed help footing the expense, they had the neighboring town's support.

"We will pay our fair share anytime. There are a lot of projects going on in Pembroke," Paulsen said. "I'm hoping the Allenstown residents don't let this $812,000 go by."

A special town meeting is scheduled for 9 a.m. June 13 at Allenstown Elementary School.