In the News

Economist: Takeover Risks High

Analysis by Dr. John Husing shows water rates would likely rise under town ownership

By Matthew Cabe
Staff Writer

APPLE VALLEY — A new analysis of the town’s ongoing water-system acquisition effort shows that water rates could be significantly higher under municipal ownership, a conclusion that contradicts assertions made by public officials.

Conducted by economist John Husing, the analysis focuses on Measure F, which Apple Valley residents will vote on in a June 6 special election. Utilizing data from previously published research, Husing analyzed the potential impact incurring 30 years of revenue-bond debt might have on the town and its residents.

According to the analysis, which looked at multiple possible cost scenarios, a $150 million bond paid back over 30 years at a maximum 12 percent interest rate — figures associated with Measure F — would result in much higher rates for customers.

“This bond’s annual payments would be $9.2 million at 4.5 (percent) to $18.6 million at 12.0 (percent),” the analysis shows. “More likely payments would range from $10 million at 5.25 (percent) to $12.4 million at 7.25 (percent) as (interest) rates rise over the next two or three years during which any condemnation proceeding would be occurring.”

Husing concludes the average increase in cost to customers would be “$502 or $620 per year equal to $84 or $103 per bi-monthly bill.” Additionally, for “the 92 (percent) of customers whose average bi-monthly bill is $129 … this would increase their average bimonthly water bill to $212 or $232.”

That amounts to increases of 65.1 or 80.4 percent, according to the analysis, which said the “full average water cost increase per customer for 30 years at those rates would be $15,056 to $18,589.”

Click here for the rest of the story.

Click here to read the entire Husing Measure F Report


News Articles

April 6th, 2017 – Inland Valley Daily Bulletin: “Government takeovers of water systems don’t deliver results.”

February 19th, 2017 – Victorville Daily Press: “Claremont resident talks avoiding ‘disaster’ in Apple Valley.”

January 20th, 2017 – Victorville Daily Press: “Liberty Utilities water rates frozen for more than 2 years.”

November 15th, 2016 – Victorville Daily Press: “Liberty sees Claremont’s eminent-domain loss as sign of things to come.”

October 19th, 2016 – Canada Free Press: “Will California Town become Another Flint, MI?”


February 12th, 2017 – Victorville Daily Press: “Valley Voices: Apple Valley would be wise to work with Liberty Utilities.”

January 14th, 2017 – Victorville Daily Press: “Our View: Time for foes to sit down and talk.”

January 31, 2016 – Victorville Daily Press: “Valley Voices: Flint water crisis offers warning for Apple Valley.”