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News in brief from eastern Pennsylvania

from Times Leader - http://www.timesleader.com/mld/timesleader/12065156.htm

EMMAUS, Pa. (AP) - The Emmaus borough council voted 3-2 to develop a purchase agreement to sell its water system.

The system, which serves nearly 5,000 properties, could be sold to a private water company or to the nonprofit Lehigh County Authority.

Member Susan Schmidt, who supported the proposal Tuesday, said income from the sale could be used to lower property taxes. But member Brent Labenberg, who opposed the idea, said residents eventually will pay much higher rates no matter who owns the system.

Officials said the local rates, which have not increased since 1982, may be the lowest in the state.

Harrisburg attorney Michael Klein, told council members that the borough faces spending more than $7 million to improve the system over the next 10 years if it is not sold. "A major contamination problem could bankrupt your system," he added.

Private companies may be interested in buying the system as a "beachhead" that could expand into surrounding townships, Klein said.

"This is a very good time to sell," he said. "There is a lot of competition and a lot of interest."

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