- Associated Press - Tuesday, March 29, 2016

SCRANTON, Pa. (AP) - The mayor of Scranton says a preliminary deal has been reached to sell the Scranton Sewer Authority for $195 million.

Officials say the sale to Pennsylvania American Water will help put the northeastern Pennsylvania city on the path to financial recovery.

Scranton stands to gain an estimated $96 million infusion from the sale. Without it, Mayor Bill Courtright said he believes the city wouldn’t have been able to survive financially.

In addition to helping bail the city out of its Act 47 financially stressed designation, the deal will also bring long-term rate savings for ratepayers and maintain jobs.

About 20 percent of the sale’s compensation will be directed to the borough of Dunmore, which is also served by the sewer authority.

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