Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Infrastructure Management topic
No spam. Unsubscribe anytime.
Council declines interest in selling borough sewer system after initial outreach from Pennsylvania American Water
Summary
A representative from Pennsylvania American Water approached borough officials about buying Palmyra’s sewer system. Council members discussed sale implications — including a possible multi‑million dollar valuation and loss of local control — and directed staff to respond that the borough is not interested.
Palmyra Borough officials said they will not pursue an offer from Pennsylvania American Water to buy the borough’s sewer collection system after an exploratory meeting with the company.
A borough official reported that a company representative asked whether the borough would consider selling its sewer system. Meeting discussion said a potential valuation was discussed informally; the official described a valuation range but did not present a formal appraisal. Attendees also discussed the potential tradeoffs: a sale could provide a lump-sum payment that the borough could use for other purposes, but it would shift operational control and rate-setting to a private company.
Council members noted that, as owners of a sewer collection system (not a regulated utility), the borough’s sewer operations are currently unregulated by state utility rates processes. Speakers expressed concern that selling to a private water company could leave sewer rates and maintenance schedules subject to profit motives and that response times or local priorities could suffer. One council member summarized the decision, saying the short‑term financial benefit would be outweighed by long‑term loss of control and potential rate increases.
At the meeting council agreed the appropriate response was to decline pursuing a sale; the borough manager or designated official will respond to Pennsylvania American Water to say the borough is not interested in selling at this time. No appraisal, vendor negotiation or formal sale process was authorized.
