WATERLOO –– The village wants to upgrade its water treatment plant on Seneca Lake in Fayette to better remove algae blooms and other new toxins that recent testing has discovered.

The village supplies a large portion of Seneca County with its drinking water.

At Monday’s Village Board meeting, the design of a major upgrade to the water treatment plant was said to be nearing completion.

Village Administrator Don Northrup said final decisions are being made on what new equipment upgrades will be made and what pre-treatment steps will be added. “Funding is an issue. We’re looking at grants, but we want to explore the idea of having the town of Fayette not assess and tax our plant and use that money to help make these improvements,’’ Northrup said.

Mayor Jack O’Connor said village officials will meet with Fayette officials Wednesday morning to discuss the tax-exempt idea. Fayette Supervisor Cindy Lorenzetti and board members Jeff Trout and Linda Zwick were present, but there was no further discussion.

Taking the water plant off the tax rolls would likely increase property taxes for town, county and school district residents. The village has approached Fayette about exempting the water plant from taxation in the recent past, but nothing was done.

“Our new approach this time will be focus on the urgency of continuing to provide high quality water,’’ O’Connor said.

“We want to take advantage of zero percent interest we have access to now. Our goal is to put this project to bid this winter and have it completed in the spring of 2022,’’ Northrup said.

In another water-related matter, board members scheduled a special meeting for 4:30 p.m. Sept. 23 to award bids for a proposed waterline improvement project to fix problems under several village streets prior to planned repaving of those streets.

Sealed bids for that work will be opened Sept. 17 and that work will be done by Nov. 30, along with repaving of Lincoln Street and Disbrow Avenue.

Remaining street repairs after the water repairs are made on other streets in the Fayette portion of the village will be completed next spring.

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