May 5--HENDERSON -- As the Town Council tries to position itself to build a municipal sewage system with the help of federal economic stimulus funds, business owners say the service would be a boon to the area's long-term development, even as some worry over the costs of the project.

After a brief public hearing Thursday, the council approved the formation of Sewer District 1. The measure moves the project closer to construction-ready status, a major criterion for receiving financing from the state Environmental Facilities Corp. as it doles out federal money for projects throughout the state.

The issue is a tricky one for the business community, since the effects of a municipal system on profits would vary. Businesses on the water along Harbor Road could save on costs and maintenance headaches associated with storing and pumping sewage, while owners with land for leach fields farther away from the harbor could end up spending more if tied into a municipal system.

Still, nearly everyone seems to agree that preserving the quality of Lake Ontario is crucial to the town's long-term economic well-being. And there's something else business owners agree on: their septic systems and holding tanks leak no unpleasant effluent into the harbor -- but the guy next door? They're not so sure.

John M. Irwin, a resident of Clay who is chairman of building and grounds for the Henderson Harbor Yacht Club, spoke in favor of the measure at the public hearing, as did Robert E. Ashodian, 14537 Harbor Road, who is the club's treasurer and a member of the Chamber of Commerce's sewer committee.

Afterward, Mr. Irwin said the yacht club spends between $4,000 and $4,500 each season on wastewater disposal. Health regulations prohibit the club from having a leach field so close to the harbor, "so we have to have 5,000 gallons of sewage stored and hauled away at least once, maybe twice a week," he said.

A municipal sewage system could bring that cost down. If Henderson's project application is approved and the town receives funding according to existing state formulas, district customers would be charged $783 per equivalent dwelling unit per year, said Kris D. Dimmick, vice president of Bernier, Carr & Associates, Watertown, the town's engineer. For businesses and organizations, EDUs for sewage service likely will match those assigned for water service, he said.

Westview Lodge manager Amy Saiff said the business spent more than $5,000 for sewage hauling between June and September last year. She said she believes a municipal system will save the business money in the long run.