The next phase of the South Washington Street sidewalk project was put on hold indefinitely after a grant source rejected a request for funding.

Village Administrator Nate Troyer informed Millersburg Village Council Monday, Dec. 12 that an application for funding from the Appalachian Regional Commission (ARC) has been turned down. ARC was one of three grant sources the village approached to fund phase two of the South Washington Street sidewalk project.

Phase two will install sidewalks beginning at the intersection of Glen Drive and South Washington Street north toward downtown.

The village has received approximately 80 percent of funding for the project through the Ohio Department of Transportation and hoped to get the rest through the Community Development Block Grant (CDBG) program and the ARC.

Noting the failure to receive ARC funding, Troyer suggested putting the project on hold until the economic climate improves or until other funding becomes available.

“We’re supposed to go ahead with design work in January, but we don’t have any funding for it,” Troyer said. “At this point, my recommendation is give the money back to ODOT... It is my understanding we’ll stay in their good graces” even though the village is backing out of the project, Troyer said.

The first phase of the project made improvements to the Glen Drive intersection and installed sidewalks south from the intersection to the Walmart/Killbuck Savings Bank driveway. The project is ultimately designed to install sidewalks connecting businesses on South Washington with downtown.

In other business, Troyer said one of the four water storage tanks in the village is leaking and will need to be resealed. The tank, a cement structure located at the north end of the village near Massillon Road, will need to be drained and resealed with an epoxy liner.

Troyer said the leakage is “not constant and is more of a bleed” but will need to be addressed next year.

Council approved a request by Clerk/Treasurer Karen Shaffer to create a line item in the general fund to collect a $2 fee for storm sewer repair. The fee has been included in water and sewer utility bills for some time, Shaffer said, but has not been broken out into the general fund.

Shaffer suggested the new line item now because changes will be made in billing for next year to reflect a $5 increase in rates.

Previously, the $2 fee went to water and sewer, which is separate from the general fund. Storm sewer repairs have previously been paid for with general fund dollars, Shaffer said, and the $2 fee will generate an estimated “$10,000 to $12,000.”

Solicitor Bob Hines said the village has been approached by a firm that provides water for hydro-fracking, who are interested in contracting with the village for water services. Hines said the firm would like a contract to draw up to one million gallons of water per day from the village water well.

The company pays an average of $10 per 1,000 gallons of water. A contract for one million gallons would run around $10,000.

Though the potential revenue looks tempting, Hines said he is investigating whether drawing such large amounts in such a short period of time is practical. A contaminant plume detected more than 10 years ago is still in the aquifer the village wells draw from.

“The problem is, as you remember, we have the plume of pollution,” Hines said. “If we pump that well a lot, it could draw that plume into the well. Also, there are concerns about maintaining the integrity of the wells.”

Council further approved a Sunday liquor sales permit for Walmart. The permit also allows for the sale of mixed alcoholic beverages.

The next meeting of Millersburg Village Council will be held Tuesday, Dec. 27.