I keep hearing different numbers—$55, $80, $135 million. What are these?

A:

$80 million is the amount of debt that could be repaid without having any effect on your water rates. In other words, the money we currently pay to GSW would cover the amount of debt.

$55 million is the amount of additional bond money that might be necessary if the court decides the purchase price should be the worst-case scenario of $135 million.

$135 million is the sum of these last two, but it doesn’t mean anything since no price has been set for the water system (which was appraised at $55 million).

If the cost is $80 million or less, we could pay for the revenue bonds needed without any additional cost to residents.  If the price is more than $80 million, we would need to take out some additional bonds to cover whatever the difference is.