The New Oxford Municipal Authority this week turned down a $4.8 million offer from York Water Co. for the borough's water system.

The offer had been hand-delivered to the borough earlier this month by York Water Co. CEO Jeffrey Osman and it was $900,000 more than York Water previously proposed paying for the system.

But the price tag still wasn't enough, said Edwin Schneider, chairman of the borough municipal authority.

"Our system is worth more than that," Schneider said.

Aside from the price, Schneider said the municipal authority also worries that selling the system to York Water Co. will send water rates skyrocketing.

In West Manheim Township, the supervisors agreed in December to sell its municipal system to York Water for $2,075,000. But the township has since learned water rates will triple – from $33 to $99 per quarter – when York Water takes over. Schneider said New Oxford could expect the same if its system is sold.

"It would be the same as West Manheim," he said. "They would double the rates immediately."

New Oxford residents will soon pay more for water as it is.

To pay for repairs and maintain the aging system in the next five years, customers will shoulder an increase of about $25 every other month. Existing water rates, on average, result in a water bill of $29.50 every other month.

Officials and residents have raised concerns about New Oxford's system, especially after fires over the years proved hydrants have flow problems. But Schneider said the authority believes it has found a solution to those problems. And since the authority already has made $7 million in upgrades to its water plant and is moving forward on replacing the leaky dam in Conewago Creek for approximately $500,000, the water company should stay in local hands and follow through on its investment.

"In five years, it might be different," Schneider said, "but right now we're better off owning the water system."

Schneider said the authority will keep lines of communication open with York Water Co. On Tuesday, the authority tabled a proposal to buy water from the company in case of emergency, such as a drought.

But the borough might also back up its supply by tapping into a 100-gallon-per-minute well Adams County Interfaith Housing recently drilled off Robinson Road and two wells Cross Keys Village – The Brethren Home Community is planning to drill off Brickyard Road.

These two potential backups would present the municipal authority with resources to supply the entire town from either side, Schneider said.

"They are at both ends of our system, which would be perfect," Schneider said.

Schneider said he is a big fan of New Oxford water, but his proposal at a meeting earlier this month to bottle it and sell it was a joke.

"It didn't come off because I was being serious," Schneider said. "I did it to help break up the tension."

But Schneider added that the meeting, which was packed with officials from the municipal authority, fire company and Borough Council, was nowhere near as tense as it could have become as the different groups each have different opinions about the water system.

"I knew the meeting could become a shouting match," he said. "But I wanted it to be a positive information meeting. It was."

It was at that meeting that Schneider explained fire hydrant flow problems could be fixed by looping fire hydrants together to concentrate water pressure. Schneider added that the loop system won't be usable until a study of the water system is completed and circulated to the fire company this summer.

To keep the lines of communication open between the municipal authority and the Borough Council, Schneider said he plans to hold a meeting in the near future with the mayor of New Oxford, a representative from the Borough Council and the authority. But the meetings, he said, should be informal.

"If you make it formal, they won't say what's really on their minds."

Contact Sean Hilliard at shilliard@eveningsun.com.