Rumors that have been circulating behind the scenes and on the streets for about a month in Greenville made it to the board room Tuesday.

Borough Manager Kenneth Weaver asked Greenville Municipal Authority board members at their meeting Tuesday if they have considered selling the authority's water plant.

"The rumor has been on the streets for a while. It could possibly be a part of a long-term solution to the borough's financial problems," Weaver said.

Topping the list of fiscal problems is a deficit of about $1.1 million -- the borough operates on a $3.06 million budget.

Also, over the past two years, the borough has used about a quarter of a $3.67 million bond issue reserved for borough projects and transferred hundreds of thousands of dollars from other borough funds to keep itself afloat. That money must be replaced.

Shortly after Weaver posed the question Tuesday, the water authority convened into a closed executive session to discuss the matter. A pair of board members said this morning the board decided during the executive session to explore the idea.

"We'll pursue it and see what our options are. There are a lot of avenues to pursue," said authority board President Mario Marini.

"The idea has been thrown around informally in the past but there has not been any definite conclusion. We would look out for the consumer first and there are also employees to look out for. There are a lot of questions right now," Marini said.

"I presume some people are reluctant because they are naturally opposed to change," said board member Dick Miller. "I believe it's doable, but we will proceed slowly."

Many authorities across the state have sold their plants in recent years, Miller said.

Neither board member would estimate how much the plant would net.

But the selling price would likely be in the millions. That money could be used to help the borough climb out of its financial hole and eliminate its large deficit, some borough officials and residents have said during the past month.

Weaver said the potential sale would not be a cure-all for the borough's fiscal problems.

"If it was sold today, it might take six to 12 months to go through," Weaver said.

"We need money now," he said. The borough applied to the state early this month for distressed community status, which would give the borough access to no-interest loans and management help.

"It may take a combination of becoming a distressed community and this (selling the company) or another idea to get us out of our hole," Weaver said.

If the borough secures distressed status proceeds from the sale of the water plant could be used to pay off any state loans and get out of the program, Weaver said. The state will decide within six months if the borough qualifies as distressed.

Borough Councilman David P. Henderson said he has heard rumors the Greenville Municipal Airport or sewer system could be sold.

Consumers Pennsylvania Water Co. Shenango Valley Division has made overtures to buy the water company in the past, but were rebuffed. Consumers executives have continued to express an interest in buying the Greenville utility.

While the authority operates separately from the borough, the borough appoints its board members.