GLOVERVILLE --- Funding could pose a roadblock for Valley Public Service Authority in taking over the rundown Avondale Mills water system, the authority's board of commissioners learned in a meeting Tuesday night.

Board lawyer Eric Shytle told commissioners in the special called meeting that South Carolina's USDA Rural Development has not agreed to a specific loan amount or grant funding for renovating the water and sewer system that serves about 550 Graniteville and Vaucluse customers.

Calvin Smith, Valley Public Service Authority's general manager, said the authority needs at least $3 million in loans and $7 million in grants from the state agency to help pay for repairs.

An additional $2 million in stimulus funds through the state's Department of Health and Environmental Control is already in place for the project, Mr. Smith said.

Avondale Mills handed over $1 million more as part of the agreement the authority signed earlier this month. The authority can still decide to give the water system back to Avondale, Mr. Smith said.

"They won't give us an amount, and they've had the paperwork since last week," he said. "We can't move forward without knowing that."

Aiken County has already begun engineering work on the sewer system, which they will rehabilitate for Valley Public, Mr. Smith said.

This week, Valley Public's legal team began searching legal documents on the 280 parcels of land where engineers will find and re-lay sewer and water lines, Mr. Shytle said.

The board hopes to have heard from Rural Development by next week, said board chairman Otis Gibson.

Without the guaranteed $10.3 million from Rural Development, the authority will not be able to afford to take over the water system.

"We will not put any increase on our current customers to do this," Mr. Gibson said.

State Rep. Roland Smith attended the meeting and plans to speak to U.S. Rep. Gresham Barrett and U.S. Sen. Lindsey Graham about Rural Development's delay in finalizing the grant and loan amounts.

"We will try to use our influence on federal legislators to encourage Rural Development to speed up the process," he said.