Reading Mayor Vaughn Spencer has vetoed the agreement between City Council and the Reading Area Water Authority.
Spencer said he can't support the agreement because his administration was purposefully left out of discussions.
"It is the role of the executive branch to negotiate with third parties, including our authorities, after which a proposal is presented to the legislative branch for further discussion and ratification," Spencer said in a memo to council.
Spencer also said the deal still leaves a $6 million gap in his budget proposal for next year.
"The proposed lease amount is simply not enough," Spencer said.
Council and the water authority announced the deal last month. It would give the city $8 million a year toward the general fund.
Spencer is calling for a market value lease that balances the budget.
We're told City Council will override the veto, but the mayor said he still might not sign the lease agreement.