Here Is How The Town Will Pay for the Water System (January 2, 2015)
The Carlyle Group, owners of the Apple Valley Water System, have tried to muddy the waters with claims that community ownership will increase your taxes. Nothing could be further from the truth.
Detailed and repeated financial analysis has shown — unequivocally — that eliminating AVR’s guaranteed 9 percent corporate profit, including $1 million in officer salaries, property taxes and other costs will more than pay off the debt service, leaving additional money for infrastructure improvements and system expansion.
Let’s simplify this by putting it another way. If you were renting your home, you would be paying your landlord enough monthly rent to cover the mortgage and insurance, but also to provide the landlord with some profit for taking care of the property. But if you bought the home and paid the mortgage, you would no longer have to pay the landlord profit. That is similar to what would happen if The Town of Apple Valley ran the water system. There would be no
landlord to pay. The money The Town saved by not having a landlord or middle man, could be used to pay off the mortgage.
In the case of Apple Valley, could actually be able to lower water rates, depending on how the acquisition process plays out.