Lebanon — Officials are looking to create a new city district that would indicate to developers and residents where Lebanon is willing to extend its water and sewer services.

By creating an “urban services district,” people would have a better idea where the city plans to either maintain or accept new water and sewer lines, planners say.

And because much of the proposed district lies within Lebanon’s core neighborhoods, they also hope to encourage redevelopment of properties rather than urban sprawl into existing rural communities.

Currently, developers anywhere in the city can request that sewer or water services be extended to a project, and it’s up to the City Council to decide whether to spend money to do so, said David Brooks, Lebanon’s planning and zoning director.

But if the new district were approved, those utilities could only be upgraded within its borders, he said.

Elsewhere, new homes and businesses would be required to install septic systems and drill wells.

“I think there’s good reason to sort of tighten that up a little bit and to focus development on where services already exist,” Brooks said in an interview last week.

The proposed district, which will be discussed at tonight’s City Council meeting, largely follows Lebanon’s existing sewer and water lines. The utilities are concentrated around downtown, West Lebanon and the city’s borders with Hanover and Enfield.

Approving the measure would “put out a clear message” to people that Lebanon is only willing to extend its sewer and water lines so far, Assistant Mayor Tim McNamara said.

The move also would discourage development in Lebanon’s rural neighborhoods, which are committed to remaining farmland and open spaces, he said.

“I think it clarifies things well,” McNamara said on Monday. “Without an urban services boundary, there aren’t really any expectations.”

That was made clear in the 1980s, when two businessmen proposed the Ben Wood development off of Meriden Road, he said. The developers initially requested that city sewer and water be expanded 3 miles to a 40-acre property, but the City Council declined.

In 1984, the Planning Board approved a 12-lot subdivision at the site, on the condition that the state permit new septic systems. Those homes now are built, but plans for greater development at Ben Wood hasn’t come to fruition, Brooks said.

“(Lebanon’s) central planning idea is that we’d like to focus development in the central areas and have the outside areas continue to be more rural,” McNamara said, adding the new district would help press that ideal.

City Councilor Clifton Below agreed, saying the measure effectively would create a boundary “between where we can expect or allow infill and new development and where we want to discourage urban sprawl.”

Setting the boundary also is a first step toward creating a build-out analysis for Lebanon, Below said. If officials don’t know where to expect development, he said, they cannot accurately predict what future costs the city might take on.

Others applauded the potential for the new district to ultimately save taxpayers and ratepayers money. Councilor Erling Heistad said that limiting utilities could prevent multimillion-dollar upgrades that might be needed to extend sewer and water to another part of the city.

“I am concerned that if we don’t do something, then we are going to be in a position of spending more money to extend services beyond where they presently exist,” he said on Monday.

Lebanon is in the midst of a $75 million project to separate sewer and stormwater from 15 miles of Lebanon’s sewer system. And the city recently has committed $1 million to expanding its limited sewer capacity, which has resulted in a partial building moratorium in east Lebanon.

Existing projects should be finished and paid for before the city takes on another large-scale infrastructure effort, Heistad said.

City Manager Shaun Mulholland also said the district is part of a cost-saving effort, meant to stave off large upgrades that might be needed at the wastewater treatment plant in the event of a sewer expansion.

But it’s not quite clear whether developers will welcome the district. Rob Taylor, executive director of the Lebanon Area Chamber of Commerce, said he welcomes efforts to encourage infill within the city’s downtowns.

He also lauded efforts to upgrade existing sewer services, saying the limitations now in place are a “drag on economic development.

However, Taylor warned against the effort becoming a backdoor to limit development in Lebanon.

The City Council is scheduled to discuss the proposed urban services district at 7 tonight at City Hall.

Tim Camerato can be reached at tcamerato@vnews.com or 603-727-3223.