A sewer projects that’s going to cost $4.7 million has residents of Clay Twp. and Phillipsburg saying they’re torn between the high cost and a desperate need to fix a potential health hazard.

Phillipsburg Mayor Richard Myers said sewage is being discharged into the storm sewers and ditches. “We can’t have that. I realize it’s quite expense, but it has to be done,” Myers said.

Montgomery County Environmental Services will contribute $400,000 to the project. The United States Department of Agriculture Rural Development Agency kicked in a $2.128 million grant. The agency also provided a $2.48 million loan at 2.75 percent interest, which will be repaid with the property assessments.

The tentative assessment for Phillipsburg residents is $9,500 and $7,337 for Clay Twp. residents.

Montgomery County Environmental Services signed an agreement with the village in 2012 to install, own and operate the sanitary sewer system in Phillipsburg. This happened after the Ohio Environmental Protection Agency, in 2009, discovered ditches and storm drains contaminated with sewage.

The Ohio EPA issued orders to the village to fix the problem, but did not say how it should be done. The fix — connecting properties to the county system — was part of an agreement between the village and the Ohio EPA, Heather Lauer, spokeswoman for the Oho EPA, said.

“If the village chooses to not follow through and get sewered, we’d enter into negotiations again,” said Lauer. “It’s not healthy. If bacteria gets into the water table, people could get sick.”

There are 255 properties in Phillipsburg impacted by the project and 10 in Clay Township. Public Health -Dayton and Montgomery County rules and regulations make updating the current on-site systems impossible due to lot sizes and soil conditions.

Phillipsburg property owner Sharon Browning said she was prepared to take out petitions to halt the project, until she read the Ohio EPA findings.

“It’s a hard pill to swallow, but it has to be done,” Browning said. “If they stop the project now to look for alternatives, we loose the grant money. Then, how much would it cost property owners?”

In late summer or fall of 2014, an assessment bill will be sent to property owners. All, part or none of the bill can be paid immediately. Any balance left will be charged interest and appear on January 2015 taxes bills and can be paid over a 40 year period.

In addition to the assessment, property owners also have private costs — an estimated $2,000 to $10,000 — to run a sewer line from their home to the right-of way and to abandon their current septic system. The permit, interior drain reroute and inspections fees will cost a minimum of $126.

“People can’t afford it and neither can I,” Clay Twp. resident Judy Elam said.

Installation of the system begins this summer and it should be operating by late summer or early fall 2014.

“We really believe the sanitary sewer project will improve the quality of life,” Brianna Wooten, communications coordinator for Montgomery County’s Environmental Services Division, said.

Once the system is operational, property owners have up to three years to connect, provided their current septic system is not creating a public health nuisance. Public Health - Dayton & Montgomery County is the governing agency in charge of determining the time frame necessary for abandonment of the current system and connection to the new sewer.

A quarterly sanitary sewer bill which average about $129.37 will be issued to the property owners by Montgomery County, once the system is operational.

Letters in support or opposition to the project should be sent to: The Montgomery County Commission, Attention: Gayle Ingram, commission clerk; 451 W. Third Street, Dayton, OH 45422. Letters will be accepted until 5 p.m. on Tuesday, March 19. Residents who file written objections by that date will be sent information on the appeal process.