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Residents and officials discuss $10 million valuation as county considers acquiring private water systems
Summary
Residents presented a $10 million valuation for two small water systems and urged the county to consider acquisition; county staff said Maryland Water Service’s stated $19.7 million price includes a $10 million goodwill component, prompting discussion of eminent domain, bonding and potential state/federal funding.
Grant Van Weingarten, a resident of the Bel Air community, told the commissioners the fair-market value of the Pinto and Highland Estate water and sewer systems is about $10,000,000, based on three valuation approaches he said are grounded in publicly filed company data.
"The estimated valuation represents a fair market value of approximately $10,000,000," Van Weingarten said, citing discounted cash flow, asset allocation and per-connection market comparables. He said similar county acquisitions nationwide have been financed with revenue bonds and surcharges on customers.
County staff confirmed the figure aligns with information the county has reviewed. "American Water identified to me 9,700,000 for that number when we spoke to them," Jason Bennett said, adding the utility included an additional $10,000,000 for goodwill that raises the seller’s asking price to roughly $19,700,000 and makes a negotiated purchase unaffordable under current terms.
Bennett and other county officials said they are exploring options, including eminent domain, and pursuing preliminary discussions with state and federal partners about funding assistance. "We're working actively behind the scenes with our federal delegation, our state delegation," Bennett said, and indicated the governor’s office and the Maryland Department of the Environment have been made aware of the problem.
County counsel cautioned that state regulators and system condition will affect costs. Attorney Beaman noted MDE is likely to require immediate upgrades to some systems if acquired, which could raise the total funding need beyond purchase price.
Speakers urged the commissioners to prepare financing options and outreach materials. Van Weingarten recommended a financing model using long-term municipal bonds, estimating roughly $50 per month per connection as a potential illustrative debt-service impact based on his assumptions.
No formal acquisition was authorized at the meeting. Commissioners said they will continue to pursue information, possible funding avenues and legal options including eminent domain and will report back as those efforts progress.
