WILTON – Selectmen plan to discuss a proposal for the town’s Water Department to borrow up to $25,000 to extend town water service to homes on Bennett and Thompson streets when they meet Wednesday. The meeting begins at 7 p.m. at the town office.

At their annual town meeting this past summer, officials asked voters to authorize the town to pursue an Urgent Needs Grant to extend the town’s water mains to those homes. It was discovered that wells at 14 homes on those streets were contaminated.

But in August officials refused the approved $45,000 grant to partially fund the project because that amount was only about half of what was needed. About 20 percent of that money would need to be spent on engineering, officials said.

Town Manager Peter Nielsen said the town voted in 1999 not to invest town funds to extend water mains to people’s homes. Officials said it didn’t make sense to accept the grant money because they wouldn’t be able to complete the work with it.

They asked Water and Sewer Department Superintendent Russ Mathers whether he would consider taking out a loan or using water department funds to make up the difference. At that time, Mathers said he did not want to do that due to the unknown financial ramifications should the Palesky tax cap pass this month.

The other option was to apply in December for a Community Development Block Grant for public infrastructure with the money becoming available some time next year. Officials agreed in August that this was the best option. Now they will again discuss the Water Department borrowing some money for the project.

In other business, Selectmen will consider signing a three year contract with Waste Management Disposal Services of Maine for the transport and disposal of solid waste from the town’s transfer station. Officials will also consider signing a three-month contract for ambulance service with Franklin Memorial Hospital.

Officials will hear quarterly reports from Mathers and Interim Police Chief Ed Leahy. They will meet behind closed doors to discuss the performance of the Wilton Police Department.