As far as can be determined, the GSW consultants simply chose a value of $200 million for the water system, without actually having any concrete basis for it, and used that for calculations.
Here are some reasons that an increase of $100/mo is wrong.
First, the actual value of the system, as determined by an accredited appraiser, is only $55 million.
Second, our GSW water bills include money that goes to pay for high executive salaries, shareholder profits, and corporate taxes. If the city owned the water system, all this money could be used to repay the revenue bonds, but the GSW consultant did not take this saving into account.
Third, whatever the cost of the system turns out to be (and it will be set by a court based on fair market value, not by GSW), not all households will pay equal shares of it. Since the repayment will be through the rates we set, those who use less water will have lower rates and therefore pay less than those who use more water.
Fourth, please note that up to a cost of $80 million, the current rates we pay to GSW would cover the bonds and we wouldn't see any increase in our bills due to the purchase.