Greenville Municipal Authority board members Tuesday authorized Hermitage lawyer Peter Acker to formally begin exploring a potential sale of the town's water system.

The 3-to-1 vote does not lock the board into selling the system, nor will it immediately launch a bidding war for it.

The board hired Acker two months ago to represent it in a potential sale, but until Tuesday had not given him any "marching orders" to proceed, Acker said. With the vote Tuesday, Acker received his baby-step orders.

Acker said his first step will be to evaluate formally the sellable assets and which ones the board may be interested in entertaining offers for, as well as determining what effects a sale to a private utility could have on employees and rates.

Acker said the board would then determine if or how it wants to proceed -- primarily, whether it wants to solicit bids from potential buyers. That decision likely would not be made until the board's next meeting in July, at the earliest. Several companies have already expressed interest in buying the system, Acker and board members have said.

"Assuming the board wants to proceed," Acker said, it could take at least three to four months to close a deal and another 60 days for any money from a sale to be transferred.

The board also could decide after soliciting bids that it does not want to sell, Acker added.

Some officials have said a sale could be a possible remedy for the fiscal woes of the borough, which formally became a financially distressed community under the state Act 47 program last month.

Some have said money from a sale could be used to help the borough exit the program more quickly. The authority operates independently of the borough but its board members are appointed by council.

Any sale proceeds would first go toward paying off the authority's $4 million long-term debt. From there, the board could either dissolve and transfer leftover proceeds to borough coffers or could remain as a governing body or overseer of the leftover money.