From left, Matthew Zarbo of Square Engineering, and Andy Johnson of EcoStrategies give an update Monday on the District 7 Water Expansion Project to Busti Town Board members. P-J photo by Michael Zabrodsky

LAKEWOOD – The town of Busti will move forward with its District 7 Water Expansion Project.

Andy Johnson of EcoStrategies, and Matthew Zarbo of Square Engineering updated town board members Monday on what the next steps are.

The proposed $5.82 million project was approved in May 2024, and is a 2.1 mile loop that begins at the 5-way intersection, in Busti, at Busti-Sugar Grove Road to Lawson Road to Mill Road to the intersection to complete the loop. The proposed expansion is expected to service about 106 users, Zarbo said.

Zarbo added that the proposed water storage tank will be located on Orr Street, and will be connected, and maintained by the Jamestown Board of Public Utilities.

“The project itself is fairly straightforward,” Zabro noted.

For the project, Busti was awarded a New York State Environmental Facilities Corp. Water Infrastructure Improvement and Intermunicipal Grant of $4,072,740 or 70 percent of the project’s cost, Zarbo said.

According to efc.ny.gov, Gov. Kathy Hochul in December 2025, announced $453 million in grants for 83 critical water infrastructure projects across New York state through the WIIA Grant programs. The grants deliver on Hochul’s clean water and affordability agendas and reinforce the state’s commitment to helping small, rural and disadvantaged communities with their water infrastructure needs. By providing critical financial relief to local governments across the state, Hochul is accelerating projects that protect public health and the environment, ensuring that state residents have access to safe, clean water.

Other EFC WIIA grant awardees in WNY include $17,795000 for Chautauqua County’s South and Center Chautauqua Lake Sewer District Phase 3 Extension, and $5 million for the BPU’s Capital Improvement Project at its Cassadaga Pump Station.

Now the board is wanting to bring costs down by looking into additional funding.

Zarbo and Johnson said the board can apply for NYSEFC Hardship loan, which would require an income survey of district residents; and the board can apply for $2 million Community Development Block Grant which also requires an income survey.

So the board, Zarbo said, has four potential funding scenarios. The No. 1 scenario is to just use the WIIA Grant which would cost users about $1,218 per year. The No. 2 scenario would use the WIIA Grant and the hardship loan, if received, and which cost users about $934 per year. The No. 3 scenario would use the WIIA Grant and potentially the CDBG Grant which would cost the users about $932 per year, and scenario No. 4 would use the WIIA Grant, the CDBG Grant, and the hardship loan which would cost users about $745 per year. Both Zarbo and Johnson noted for the costs to be lower, the board would have to be awarded hardship loan and CDBG Grant. Johnson noted costs below $1,000 per year for a new water district is very affordable.

Expenses, Johnson added, from a private well generally exceed $500 per year on average.

The board must also select an engineer for and must complete the request for qualification process, Zarbo said. Once all components are in place, design may be scheduled this year while the bidding process may take place in 2027, and the construction may begin in 2027.