… the current rate structure would stay in place if the Town acquires AVR.TOAV Feasibility Study, 2014
Even if the town bought the water company, rates aren’t going to go down.Rick Roelle, candidate for Apple Valley town council, 2014
For the record, the Town has never said it will lower rates.post by TOAV on its Facebook page, 2015
Apple Valley Mayor Pro Tem Barb Stanton recently told the Daily Press she believes water rates will go down once the town pays off a bond that would be used for the purchase. [Webmaster note: That is, only after 30 years!]
[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), 2016
For years, the whole focus of the TOAV’s hostile take-over of Liberty Utilities 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 Liberty Utilities, 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 $150 million, at up to 12 percent interest) that will be necessary for TOAV to purchase Liberty Utilities 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 of course they’re promising that would never happen.
|The TOAV gets||The citizens get|
— Greg Raven, Apple Valley, CA
“Advocates of government takeovers typically identify the elimination of ‘profits’ and taxes as two sources of financial benefits from a change in ownership. There is no sound basis in accounting or economics to support the expectation of real benefits to ratepayers, in the form of lower bills, from the elimination of these sources.”