What Are We Doing?
Opposing the hostile takeover of Liberty Apple Valley
On April 25, 2017, Assistant Town Manager for Finance Marc Puckett reprised for the Apple Valley Town Council his report of April 11, 2017, innumerate Mr. Puckett, there are errors and incorrect assumptions throughout. Let’s examine his figures for how much of a loan the Town can afford toward purchasing the water system via eminent domain, and calculate a better estimate.
Page 14 of Mr. Puckett’s PowerPoint presentation contains a summary, which I have reproduced in the table below. (This summary also appears on a separate sheet,
Preliminary Financial Analysis: Funds Available Under Current Rates for Debt Service.) The first column headings are Mr. Puckett’s, as are the figures in the
In the next column over (
Actual), I show the real numbers that Mr. Puckett should have used.
As you can see, Mr. Puckett’s calculation of how much the Town can afford in annual bond payments is off by $10,416,000 — not his biggest known error by any means but still substantial.
conservative rate of interest used by Mr. Puckett to calculate the maximum affordable bond amount based on the Town’s
savings compared to continued operation under Liberty Utilities, $1,508,919 in annual bond payments back-calculates to a maximum bond size of somewhere around $23,871,730,f which is less than half of the already low offer the Town made to purchase Apple Valley Ranchos Water Company.g
Or, to look at it another way, if the Town spends the entire $150 millionh for which is it asking voters (and being politicians, what is there to stop them?), and pays the
conservative rate for the bond, it will mean an increase of $67.29 on the average bill. For water-conscious residents such as my wife and me, that would mean our water bill would double.
— Greg Raven is Co-Chair of Apple Valley Citizens for Government Accountability, and is concerned about quality of life issues.
465 miles of water mains; 24 wells; emergency generators; storage tanks; booster stations; and pressure zonesrecognized by the Town.