(a) General rule.--By ordinance, a borough may sell all or part of its water system to a purchaser at an agreed-upon price, and, thereafter, for all purposes that price shall be deemed to be the purchaser's original cost less accrued depreciation of the plant at the date of purchase. No ordinance shall take effect until the expiration of ten days following its enactment, and, if, within that ten-day period, a protest signed by at least 10% of the registered electors of the borough is filed with the council, the sale shall be stayed pending a referendum on the ordinance.
(b) Protest.--The following shall apply to a protest:
(1) The borough secretary, within five days following the filing of the protest, shall certify to the county board of elections a copy of the ordinance and the fact of the protest, together with the number of signers of the protest, and the county board of elections shall direct a referendum to be held on the matter at a special election to be held at the time of the next general or municipal or primary election occurring not less than 60 days from the date of the certification by the borough secretary.
(2) The referendum shall be conducted by the county board of elections in the manner provided by the act of June 3, 1937 (P.L.1333, No.320), known as the Pennsylvania Election Code, for the holding of special elections. The ballot used when voting upon the question shall contain a question stating the nature and purpose of the ordinance and provide that a "yes" vote shall be to sustain the ordinance and a "no" vote shall be to reject it.
(3) If more electors vote to sustain the ordinance than to reject it, the ordinance shall take effect immediately. If more electors shall vote to reject the ordinance than to sustain it, the ordinance shall be null and void and shall not take effect.
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