Montoursville Borough may receive as much as $84,548 in Community Development Block Grant funding for a streets reconstruction project.
Kristin McLaughlin, of SEDA-Council of Governments, which administers the funding, told borough council Monday night the precise allocation is not known at this time, however.
Due to the sequestration process, federal funding remains up in the air, she explained.
Council has targeted Bennett and Pine streets for the reconstruction.
The work could include repaving, upgrades to curbing and sidewalks, as well as tree removal.
McLaughlin said she expects at least a 5- to 7-percent reduction from the borough's 2012 CDBG allocation.
She said it's likely that the funding would not be available until at least the late summer.
Projects eligible for CDBG funding include those for infrastructure improvements and recreation and to remove blight.
Council is expected to take action next month to approve the project.
In other matters, Streets and Water Commissioner Ron Smith reported to council that various repairs to water and sewer lines have been made in recent months.
"We estimated in the last two months we lost 9 million gallons of water," he said.
A number of other repairs still are under way, according to Smith.
Smith also reported that the street sweeper has been ordered.
Council agreed to advertise for bids for mowing and trash removal in Indian Park.
Following a public hearing, council granted conditional-use approval for Trinity Assembly of God, 328 Loyalsock Ave., to convert space in its building for offices and classrooms.
Conditional use was needed since the church is located in a residential district.
Council held an executive session prior to the regular meeting to consider personnel and legal matters.