CANTON — Scotty Kilbreth, chairman of the Board of Selectmen, reported Thursday night that money for building a dam at the outlet of Lake Anasagunticook is held up by indecision on the federal budget.

“The CDBG program has no choice but to wait for the federal budget process to be decided,” according to a letter from Michael Baran of the state Office of Community Development. He said due to the uncertainty of the federal budget process at the Office of Community Development, they were unable to move forward at this time with grants for public facilities and infrastructure.

“We rely on that money,” Selectman Donald Hutchins said.

“We are at a financial standstill, but the paperwork is still going forward on the dam,” Selectman Shane Gallant said.

The town has been working for several years to replace the Whitney Brook dam that regulates the water level on the lake, which lies in Canton and Hartford. The town received approval for a $500,000 CDBG grant.

In another matters, the board voted to send Victorian Villa nursing home a notice that it has violated a sewer ordinance by discharging prohibited items.

David Madison of the Sewer Department told the board that rags are still ending up in the sewer ponds. He said he recently pulled 4,000 pounds of them out of the ponds.

“I have to pull the pumps every two weeks to clean out the rags,” Madison said. “It is costing this town lots of money to keep doing this.”

The board voted to increase the cost of sewer use by $3,000 per quarter for businesses with an 8-inch diameter pipe, effectively immediately.

Mike Auger of the Androscoggin Land Trust asked the board for a letter of support for the proposed future land conservation in Canton and Jay. Auger said they hope to purchase the Verso Paper land, making a total of approximately 1,300 acres for public land open for recreational use. The source of funding is the Land for Maine’s Future.

Chuck Kraske of Verso Paper spoke of the need to preserve the land as a natural resource.

Deputy Clerk Kelly Cavanaugh gave the results of a ballot recount for written-in for the Recreation Committee as follows:

Elected to three-year terms were: Carl Leuders, 6; Jane Leuders, 5; and Jason Vaughan, 5.

Elected to two-year terms were: Erin Wainwright, 2, and Kelly Cavanaugh, 2.

Elected to a one-year term were: Kathy Walker, 3, and John Conant, 2.