Through a combination of factors, the city is faced with a budget gap.  The administration proposes selling off the outlaying infrastructure to raise money to meet the deficit and hold the line on a tax increase.

Unfortunately, the proceeds of the sale will only stave off the inevitable for about 15 months.  By the time the FY 2011 budget (July 2010 - June 2011) is being prepared for approval, the proceeds from this sale will have been used up.  There will be nothing left to sell to close the budget gap and the income we now receive from selling water to thousands of customers outside of the city will be gone as well.

Instead we may have income from "wholesaling" water to New Jersey American Water Company (buyer of the outside distribution system) who will in turn sell to indivdiual customers in the suburbs for a profit.