What Are We Doing?
Opposing the hostile takeover of Liberty Apple Valley
A recent letter by Lee Bell brought up an interesting aspect concerning the Town of Apple Valley’s proposed hostile takeover of Liberty Apple Valley: The total amount that will be needed to retire the bond (
Mayor propaganda, Daily Press, March 1, 2016).
A resolution approved and adopted by the Town Council on January 26th, 2016, set the maximum amount to be borrowed at $125,000,000. Previously, the Town had announced it might be able to borrow funds at as low as 4.75% interest (this was before the Fed raised interest rates one-quarter percent, with indications of future increases). Even at that, the total interest payment alone would be roughly $109,741,301 — not quite double, but awfully close. Combined with the actual purchase price, that adds up to $234,741,301, which seems a lot of money to pay to buy something we already have, especially considering we’d be turning it over to somebody who doesn’t know how to run it.
Of course, the higher the price and the higher the interest rate, the more money it will take to retire the bond.
If the ratepayers wait to revolt only after this deal goes through, they may be able to get rid of the politicians and bureaucrats who got us into this mess, but the bond and its payments will remain with us for decades.
— Greg Raven is Co-Chair of Apple Valley Citizens for Government Accountability, and is concerned about quality of life issues.
Published: Daily Press, March 14, 2016