NORTH SALEM, N.Y. - North Salem’s planned improvements to the Croton Falls existing water district and a proposed sewer district in the hamlet both took a step forward recently.
The Town Board, at a special meeting held on Friday, July 24, voted to authorize Supervisor Warren Lucas to issue $830,870 in bonds to pay for the water project and $19.9 million in bonds to cover the cost of establishing the sewer district.
The estimated cost of the sewer project’s construction had originally been $15.3 million, but the state’s Environmental Facilities Corporation had suggested that the town set aside another 30 percent in a contingency fund. That addition brought the projected cost to $19.9 million.
Folks in Croton Falls now rely on septic tanks and septic fields. They are already on public water.
The bond resolutions take effect immediately. However, this does not mean that the town can run out tomorrow and borrow money.
According to their wording, no bond anticipation notes or bonds can be issued “prior to the completion of proceedings” pursuant to a certain section of the town’s finance law, such as public hearings and possibly a referendum, and “the subsequent ratification of the bond resolution by re-adoption” by the Town Board.
The bond resolution for the water district project supersedes one that was adopted on June 11, 2024.
The same caveats apply to the proposed sewer district. In that case, the bond resolution supersedes one adopted Sept. 9, 2025.
According to Lucas, such “ersatz” resolutions are simply a way to show that everybody knows exactly what a project is and what it’s expected to cost.
“Nobody’s doing this on the sly. That’s what they (the EFC) wants it for,” he explained.
The town’s aim is to be able to tell the businesses and residents in the proposed sewer district that the capital costs will have “zero” impact on them. Operating and Maintenance costs are a separate issue.
Until the contingency was added, Lucas said the town had enough in grant money to cover construction, legal, and other costs.
It had received $1.2 million in “Community Project Funding” through Congressman Mike Lawler’s office. The process allows lawmakers to earmark federal funds – in this case, from the U.S. Environmental Protection Agency -- for specific local, nonprofit, or governments projects in their home states and districts.
The New York City Department of Environmental Protection had originally awarded North Salem “up to $6.8 million” for the project. That’s been increased to $8 million -- if it “needs it,” Lucas said.
Up to another $6.8 million in grant money is in the bag. It’s part of the pot of money that the New York City Department of Environmental Protection gave Westchester County in the 1970s.
(The Peach Lake sewer project snagged $10 million from the same source in 2012.)
Then there’s the $526,000 North Salem received under the American Rescue Plan Act (ARPA), the economic stimulus law designed to aid pandemic recovery efforts.
That’s already been spent on an Intermunicipal Agreement with the town of Somers to establish a public sewer connection for Croton Falls.
North Salem, which will hook into the Heritage Hills treatment plant, agreed to pay Somers $526,000 for the loss of convenience, access easements, and the use of town roads and rights-of-way.
The pact grants North Salem a sewage treatment allotment of 20,000 gallons a day.
The $526,000 is being held in escrow by Somers and will be released once bids are awarded.
As for anticipated O&M costs, Lucas said he had been given those “verbally” by Veolia, the treatment plant’s owner and operator. He only recently got those in writing from the company.
The average household uses about 120 gallons a day, which translates into a sewer bill of about $400 a year.
“That’s a bargain,” remarked Deputy Supervisor Peter Kamenstein.
“Now $400 is not nothing, but that’s the cost,” Lucas said, pointing out that businesses such as restaurants will pay more because they use more water.
At its July 28 regular meeting, the Town Board authorized Lucas to re-apply to the state Department of Environmental Conservation for a $5.7 million Water Quality Improvement Project grant for the sewer project.
The town had applied for a WQIP grant last year but didn’t get it “on a technicality.”
The day before, Lucas put in an application for $3.7 million Water Infrastructure Improvement Act grant. Administered by the EFC, the program provides grants for critical wastewater and drinking water facility upgrades.
“If I can get some (grant) money for the contingency, that would be a wonderful thing,” said Lucas, who’s not expecting to get the final word until late fall.
North Salem is planning to expand the Croton Falls water district plant to accommodate filtration systems aimed at removing PFAS.
The amount of so-called “forever chemicals” in the well now in operation does not exceed 10 parts per trillion, the Maximum Contaminant Level allowed.
However, New York lawmakers have advanced proposals to align state limits with the stricter 4 ppt federal maximum, which is slated for full compliance by 2029.
Lucas was concerned about sinking hundreds of thousands of dollars into improving the water system when it could fail the MCL test in just a few years’ time.
He’s hoping that -- in light of that future fact -- that the water project will earn enough “points” to qualify for a WIAA grant.
“Do I have to do it today? No. Do I have to do it tomorrow? No. But in a year or two, we’re going to be sitting here and we’re going to know we’re in violation,” he said.
Daniels Weighs In
Lucas explained that the special July 24 meeting was necessary because the $3.7 million WIIA grant application deadline was 4 p.m. on Monday, July 27.
Unable to attend, Councilwoman Katherine Daniels sent along a letter that she asked be read into the official record.
Objecting to the meeting’s timing, Daniels wrote that its agenda contemplated “over $20 million in borrowing on behalf of Croton Falls,” namely $19.9 million for sewers and about $1 million for PFAS remediation.
“Although the board is not actually borrowing the money this evening, it is representing to the public that it has a bona fide intention to do so. That representation should not be made lightly,” she said.
Daniels wrote that Lucas had “promised that the entire cost of construction of the sewer project will be covered by grants” and had stated that “just over $16 million has been secured.”
She said she’d seen “spreadsheets,” but not the “paperwork supporting the commitment.”
“I sent all of it to everybody,” Lucas interjected.
“As commissioners of both districts, we the Town Board need to see the terms before we agree to anything,” she wrote, adding that the folks who will be in the yet-to-be-formed sewer district “need to understand that any cost above what is funded by grants plus interest will be borne by the members of the yet to be approved district.”
“It is misleading, and in my view, irresponsible to represent that the entire cost of the project will be covered by grants because costs are almost always more than projected, and only a small number of properties (109) will be bearing these potentially large costs,” she continued.
“The fundamental question should be, which is more important, the health, safety, and welfare of the residents of the water district in providing clean, safe water or the desires of the business district to expand? The answer is spelled out in the Croton Falls master plan: Clean water comes first.”
Daniels, who chairs the town’s Capital Planning Committee, stressed that her “bottom line” was transparency and that she was NOT opposed to the sewer project itself.
“I just want to make sure everyone is clear-eyed about what this is likely to cost,” she explained.
No Borrowing
Lucas responded that the “key thing to remember” was if the town doesn’t get enough grant money, the sewer project won’t be happening.
Again pointing out that the town is “not borrowing” money, he understood Daniels’ concerns but didn’t share them because, he said: “I know what we’re doing.”
Referring to the PFAS project, Lucas said: “This is work that we have to do. If we don’t get the grant, we’re going to do everything on a shoestring.”
The town is applying for additional grants to cover contingencies.
Support for Plan
Croton Falls resident Gary Dearborn applauded the town – and all involved -- for their efforts to establish a sewer district.
The resolution makes it “pretty clear” that there won’t be any borrowing, he said, adding that he felt Daniels’ letter was “a bit misleading” because “it would give a resident like myself the impression that the village (CQ) is having to take on a big debt burden.”
Dearborn advocated for “a vibrant central business district” and, if possible, for the sewer project to “reach up the hill” to residences.
Public sewers improve property values, he said, adding: “I think we should remind people of that.”
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