The town of Beloit has agreed it won’t pursue incorporating into a village for at least 30 years as part of a sewer and water deal with the city of Beloit.

Under the agreement, the city will provide sewer and water to a wedge of the town south of Beloit-Newark Road between the Rock River and Afton Road.

The agreement approved Monday night by the town board and city council comes after years of negotiation. Talks had stalled while the town tried to incorporate as a village, an effort the state denied in 2018.

Failing to abide by the deal would result a $1 million penalty for the town.

Beloit City Manager Lori Curtis Luther said she was “proud” of the agreement.

Interim Town Administrator Gene Wright explained to people at the town board meeting Monday that the agreement had been tied to incorporation efforts in an attempt to save taxpayer dollars and ensure clean water for residents.

Because the town cannot cost effectively service wastewater in the area, the town requested the city to treat the wastewater. The city can also offer water service within the area.

“We need to get this thing wrapped up,” Wright said at the meeting Monday.

“I am glad we can move forward and bring this issue to a positive resolution,” Wright said in a statement Tuesday.

Dan Schreiber was the only town board member to vote against the agreement Monday.

The $5.86 million project will update water, sewer and roads in the area.

The city will be reimbursed for $184,518 in sewer infrastructure it previously placed in the area, according to the agreement.

Town residents in the area will be able to receive water and sewer services without being annexed into the city. They will not be required to hook up to sewer service until their septic systems fail.

Homeowners must connect to city water but will have 20 years to pay the assessment.

The town will bill homeowners in the area for sewer service and pass the money to the city. The city will bill residents directly for water services.