LACONIA — There are about 7,500 homes and businesses on the sewer system, and that number is likely to grow.

Still to be decided is how much growth and how this expansion will be funded.

The City Council told Public Works officials on Monday night to begin discussing the issue with the Planning Department as it prepares a master plan that addresses the infrastructure improvements that would allow the development of new neighborhoods.

Also, new sewers could be brought to already-existing neighborhoods that now use septic tanks.

“Possible areas for expanding the system are those unserved areas of the city in close proximity to the lakes,” the department said in a report to the council.

Outdated or failing septic systems have the potential for creating water pollution.

There are two main options for funding sewer expansion.

All ratepayers could see an increase to cover bond payments. The second method would be for property owners in the expanded service area to fund the expansion through a fee.

The department designed a project to expand the sewer collection system in the Woodvale Avenue, Route 11B, Endicott Street East area. The design was divided into four phases.

The total estimated construction cost for all four phases is $4.25 million. Sanitary sewer service would be provided to 136 properties.

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