SCRANTON -- In a late night news conference, Mayor Bill Courtright announced a preliminary deal to sell Scranton Sewer Authority to Pennsylvania American Water for $195 million.
"I think without this deal, the city wouldn't have been able to survive financially," said the mayor.
The Scranton Sewer Authority was formed back in the 1960's and currently, is Scranton's largest remaining asset.
But the mayor believes this is the golden ticket to help the city recover.
"Making sure this deal provides the greatest possible benefit to Scranton's taxpayers and the rate payers," he added.
The deal would give about 20% of the compensation to Dunmore since the sewer authority also serves Dunmore.
According to the mayor, rates for customers would go up only about 2% every year for ten years. An increase, but a less drastic increase than if city leaders did nothing, he added.
This decision doesn't come out of blue. Sewer Authority leaders laid out a plan in a public meeting back in December to sell the Authority. A plan that wasn't met with the support of many in attendance.
The mayor said it could take months before taxpayers notice the change taking effect.
He did not specify where the $195 million would be going, but this deal comes less than two weeks after city leaders agreed to pay $31.5 million in back pay to police and firefighters.