What Are We Doing?
Opposing the hostile takeover of Liberty Apple Valley
The mask is coming off of those who support the Town of Apple Valley seizing our water company. In today’s letters, John Pedigo comes right out and says what the Town Council has been implicitly promising: Use someone else’s money to pay for the water (“Husing’s report and Liberty rates”). How appropriate that the Daily Press published this letter on May Day, the Communist holiday. Note how different this actual position is compared to the Town’s “public” promises to lower water rates. Anything is possible when you’re spending someone else’s money, I guess.
Mr. Pedigo also imagines that replacing a couple of appropriated-paid private sector employees with a gaggle of over-paid public section employees (and their out-sized pensions) somehow saves money. No wonder he did not understand Dr. Husing’s report.
Husing’s report concludes, “A look at the possible water costs for each customer from a revenue bond given these circumstances shows a high probability for significant rate increases. Even if the $150 million Measure F bond level is sufficient, it could cost customers an extra $502 or $620 per year equal to $84 or $103 per bi-monthly bill. Voters should be hesitant to take such a risk.”
Husing’s report backs up the analysis by Dr. Sosa, which reads, “[A] change in the ratemaking treatment of capital expenses due to takeover will not result in savings for ratepayers, unless the government owner reduces annual investment in the water system. […] The results of this report illustrate that contested takeovers are very costly for the acquiring government entity, and that advocates of contested takeovers tend to significantly overstate the economic benefits of government ownership.
This is exactly what Mr. Pedigo has done, and it is why we must each vote no on Measure F.
— Greg Raven is Co-Chair of Apple Valley Citizens for Government Accountability, and is concerned about quality of life issues.