At right, Tom Walsh, director of the North Chautauqua Lake Sewer District, speaks at the legislature’s Public Facilities Committee meeting.

MAYVILLE — Residents who will be joining the new sewer district around Chautauqua Lake will pay less than $1,000 a year due to some savings on the overall project.

During a meeting this week of the legislature’s Public Facilities Committee, a resolution was approved setting the rate at $930 annually. The resolution still needs final approval by the full legislature.

Tom Walsh, the director of the North Chautauqua Lake Sewer District, discussed the resolution before the vote.

Walsh noted that when the Phase I of the South Chautauqua Lake Sewer District extension was first proposed in 2020, it was expected to cost $16,888,000. The project was expected to get $7,972,000 in grant funds. New users of the district were told they would pay up to $1,000 annually to cover the balance of the $8.9 million loan.

He added that $1,000 was a maximum amount permitted by the New York state comptroller’s office.

Walsh said the project is about 90% complete and is actually under budget. He said the actual project cost came in at $15,098,000, or $1.79 million less than expected. Because the project is less than originally anticipated, the grant funding will drop around $400,000. They will also borrow less money, needing a $7,535,366 loan instead, which is about $1.38 million lower than originally projected. The drop in the loan is why the new rate will be $930 annually for the next 30 years, instead of $1,000.

Of the $930 charge, $354 will be for operation and maintenance, while $576 will be used for the loan.

Vacant properties with at least a quarter acre of land with sufficient road frontage for a new house construction will pay $100 annual cost for the construction for a 30-year period.

Walsh noted that because there is now municipal sewer, the property values, including the vacant lands, are all going up.

He said with COVID-19 and the supply chain issues, he was pleasantly surprised that they were able to lower their costs for the project.

Walsh said every residence must connect to the sewer district once it’s up and running. Private septics will no longer be permitted.

The full legislature will give final approval of the rates at its meeting May 24.