What Are We Doing?
Opposing the hostile take-over of Liberty Apple Valley
Detailed financial analysis shows that the combination of operating income and eliminating corporate costs (including Carlyle’s 9 percent profits) will provide the Town with well over $8 million per year to pay off the debt of acquiring the Apple Valley Ranchos water system.
The Town of Apple Valley would likely sell municipal bonds to raise the money to buy AVR. Those bonds would be paid back on an annual schedule. To pay the bond debt on a $50 million purchase price would cost the Town of Apple Valley roughly $3 million annually. Even if the price of AVR was set at $88.6 million (comparable to the value of the Missoula, Mont. water system, the annual payment would only be about $6 million annually.
In fact, the Town could afford to buy the system at $100 million, while still investing in infrastructure improvements and stabilizing rates.