Adams said a review of village audits shows that Teutopolis could qualify for an "A" bond rating that would enable the village to get a relatively low interest rate.
"Size may be a disadvantage, but they (bond rating firms) will look at your audits," he said.
Adams said the process lasts 60 to 75 days from beginning to end. That process, he said, includes publication of legal notices, the actual sales and board action in the form of an ordinance.
"Nothing is set in stone until the ordinance is passed," Adams said.
Adams said he would make an agreement letter available for the July 3 board meeting.
Woodard said the project should be complete by mid-2014.
Teutopolis has been buying water from Effingham for the past several years. Woodard declined to say why the village was seeking another source to supplement its own water production, but said the pending deal with Newton was a "win-win for both sides."
Woodard said financial terms of the sale are pending.