It took a global financial collapse, but Allenstown is poised to accept money that would pay for its sewer plant upgrades.

The town will be offered a little more than $800,000 in federal stimulus money with a matching low-interest loan from the state to finance much-needed upgrades to the Suncook wastewater treatment plant, according to project rankings released yesterday by the state Department of Environmental Services.

Town officials plan to convene a special town meeting May 30 so voters can approve a 10-year bond for the $1.63 million project, said Selectman Tom Gilligan. While approval is needed for the town to accept money, the bond will not affect taxpayers, he said, because the sewer commission says it can repay the loan from its operating costs.

"The sewer department has confidence it can offset that payment each year so there is no increase to the tax rate or the sewer user rate," he said.

Pembroke shares the plant and has been ready for years to fund its portion of repair costs, but Allenstown voters have for three years in a row rejected bond articles to expand the plant. In February, participants in the Allenstown deliberative session said they could not afford higher taxes, even for a necessary project.

Gilligan would not say whether he expects townspeople to approve the bond, but he said time is running out for Allenstown to use "free money" to help fix the plant, creating additional sewer connections in each town and allowing the tax base of each community to expand.

"Something drastically needs to be done at that plant," he said. "It will not only help the wastewater treatment plant, it will help all taxpayers and ratepayers in town."

The town will have a public hearing May 4, he said. Though Allenstown operates its annual town meeting under the SB 2 format, officials plan a traditional town meeting to speed the process, he said. Two-thirds of voters must approve the bond for it to pass.

The Allenstown upgrade was one of 33 wastewater projects slated to be offered $39 million; 54 drinking water projects were offered $19 million. Thirteen energy efficiency and eight storm water protection projects also made the cut.

The Environmental Protection Agency allocated grant money to DES, which then ranked projects according to criteria including readiness, affordability, and environmental benefit and impact.

Readiness is a critical factor because all stimulus money must be expended by February 2010, said Jim Martin, public information officer for the environmental department.

"Municipalities won't have the option of delaying beyond this construction season to get projects under way," he said.

Stimulus money will also be offered to two drinking water projects in Allenstown. The Catamount Hill Cooperative mobile home park is eligible for nearly $400,000 in stimulus money and the matching low-interest loan from the state, and the Olde Towne mobile home park is eligible for nearly $200,000 in stimulus money along with the match.