Everything you need to know about TOAV’s claims (April 8, 2015)

… the current rate structure would stay in place if the Town acquires AVR.

TOAV Feasibility Study

Even if the town bought the water company, rates aren’t going to go down. Rick Roelle, candidate for Apple Valley town council

[Q:] Are you going to lower rates?

[A:] We cannot promise to reduce rates after acquisition, but we will do our utmost to stabilize them.

H2Ours website (TOAV)

For the record, the Town has never said it will lower rates.

post by TOAV on it’s Facebook page

For months, the whole focus of the TOAV’s hostile take-over of AVRWC was the elimination of all that horrible profit. Any reasonable person would assume, then, that a takeover by the TOAV would result in a reduction of those rates. As you can see, though, TOAV acknowledges that they will not be lowering rates, and won’t even promise to keep rates stable.

In fact, if you look at the numbers published by the TOAV regarding the financing of the hostile take-over, you’ll see that TOAV is depending on the very water rate increases they decry, as those rates are essential to the success of the seizure.

In other words, TOAV plans on taking at least as much money as AVRWC, but instead of the money going to a local business, most of the money will be going to outside creditors to service the massive debt (up to $200 million, plus interest) that will be necessary for TOAV to purchase AVRWC and enough water rights to allow them to control our water, with the rest of it going who knows where.

The only way TOAV can deliver on its promise of stable rates is by raising taxes through the roof, but they’re not telling you that.

Executive summary: If this deal goes through …
The TOAV gets The citizens get
  • No reduction in water rates, and probably increases.
  • A mountain of debt.
  • No local opposition to water rate increases.
  • No protections against water rate increases from outside agencies.
  • No guarantee that those running the water system are competent.
  • No guarantee that those running the water system are available when needed, or polite or helpful when reached.

— Greg Raven


Update: Assistant Town Manager Marc Puckett has finally set the record straight on the rate issue.