The price is subject to negotiation or court determination, but prior appraisals and current estimates suggest a price under $225 million. If acquired through eminent domain, the court will determine the price, not Cal Am.
The Monterey Peninsula Water Management District has the authority to issue public bonds to cover all acquisition costs. The $19 million in corporate profit and taxes that now go to Cal Am annually would be used to finance those bonds without increasing our water rates. Savings will be greater as the bonds are paid off.