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Apple Valley, California, Water System Acquisition, Measure F (June 2017)

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Local ballot measure elections in 2017
Measure F: Apple Valley Water System Acquisition
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The basics
Election date:
June 6, 2017
Status:
Approveda Approved
Topic:
Local water
Related articles
Local water on the ballot
June 6, 2017 ballot measures in California
San Bernardino County, California ballot measures
See also
Apple Valley, California

A water system acquisition measure was on the ballot for Apple Valley voters in San Bernardino County, California, on June 6, 2017. It was approved.

A yes vote was a vote in favor of incurring $150,000,000 in debt in order to acquire the Apple Valley water system currently owned by Liberty Utilities.
A no vote was a vote against incurring $150,000,000 in debt in order to acquire the Apple Valley water system currently owned by Liberty Utilities.

Election results

Measure F
ResultVotesPercentage
Approveda Yes 7,200 57.89%
No5,23842.11%
Election results from San Bernardino County Elections

Text of measure

Ballot question

The following question appeared on the ballot:[1]

Shall the Town of Apple Valley be authorized to finance the acquisition of the Apple Valley water system, currently owned and operated by Liberty Utilities, including related expenses, by incurring debt in the maximum amount of $150,000,000, provided that the debt is repaid from revenues generated by the water system, and not from taxes, and further that the Town conducts an annual independent audit?[2]

Impartial analysis

The following impartial analysis of the measure was prepared by the office of the Apple Valley City Attorney:

On March 9, 2017, the Town Council voted unanimously to place Measure "F" on the June 6, 2017, ballot.

If approved by the voters, Measure "F" will allow the Town to finance the acquisition of the Apple Valley Water System (currently owned and operated by Liberty Utilities (Apple Valley Ranchos Water) Corp., a subsidiary of Liberty Utilities, Co., which is in turn owned by Canadian power company Algonquin Power & Utilities Corp.) by issuing debt up to a maximum amount of $150 million. The debt would be repaid from revenues generated by the water system and not from taxes, and the Town would be required to conduct an annual independent audit.

The Town began exploring the potential acquisition of the Apple Valley Water System in response to a number of factors, including, but not limited to, the following: public concern about water rates, which are higher for customers of the Apple Valley Water System as compared to neighboring jurisdictions; lack of local control over water rates, service, expenditures, and policy; lack of responsiveness to ratepayer concerns; and lack of transparency in the operation of the Apple Valley Water System.

Under State law, the Town may issue some forms of public debt for the acquisition, construction, improving, or financing of an enterprise without calling an election. However, Measure V, which was adopted by the voters in November 2016, requires the Town to seek voter approval before it may issue any form of public debt over $10 million to provide funds for the acquisition, construction, improving, or financing of an enterprise, including the Apple Valley Water System.

Consistent with Measure V, Measure F provides voters the opportunity to approve the Town's decision to acquire the Apple Valley Water System by issuing debt. Although the Town believes the value of the water system is significantly less than $150 million, it seeks approval for a maximum of $150 million because Town finance staff have indicated that is the level of debt for which the Town can pay the debt service through the elimination of profits, taxes, and other avoidable expenses, such as executive compensation, without having to increase rates for water system customers. If the Town is able to acquire the water system for less than $150 million, it expects that it would be able to reduce rates for customers of the Apple Valley Water System.

Measure "F" requires simple majority approval to pass.

A "Yes" vote will approve Measure "F."

A "No" vote will not approve Measure "F."

The above statement is an impartial analysis of Measure "F." If you desire a copy of the Measure, please call the elections official's office at 760-240-7000, ext 7800 and a copy will be mailed at no cost to you. [2]

—Apple Valley City Attorney[1]

Full text

The full text of the measure is available here.

Support

Yes on Measure F

The group Citizens for Water Freedom ran the campaign in support of Measure F.[3]

Supporters

The following individuals signed the official argument in favor of the measure:[1]

  • Scott Nassif, mayor, Town of Apple Valley
  • Art Bishop, mayor pro-tem, Town of Apple Valley

Organizations

  • San Bernardino County Democratic Party[4]

Arguments in favor

Official argument

The following official argument was submitted in favor of the measure:[1]

A Yes Vote on Measure F will finally put Apple Valley Residents in control of their Water and Future. Water is the lifeblood of any community, and for too long Apple Valley's water rates and future have been dictated by a global, for-profit company.

A Yes Vote on Measure F will:

  • Protect Taxpayers – No Tax Dollars will be spent on financing.
  • Bring Local Control to your Water System and the future of Apple Valley.
  • Take our Water System out of the hands of a Foreign Based Company.
  • Keep the money you pay for our water in our Town.
  • Put safeguards in place, including an Annual Independent Audit.

A Yes Vote authorizes financing to purchase the water system Without Raising Taxes. Financing will be paid through current water system revenues. Why should we pay so much more for water than our neighboring communities pay?

Your Town Council Voted Unanimously to put this Measure on the ballot for your consideration. This is Your Opportunity to control your water rates and economic future for you, your family, and Apple Valley's "Better Way of Life."

Please Join Us, And Vote Yes On Measure F. [2]

Opposition

No on Measure F

The group No on Measure F ran the campaign in opposition to Measure F.[5]

Opponents

The following individuals signed the official argument against the measure:[1]

  • Peter Allan, former mayor, Town of Apple Valley
  • Diana Carloni-O'Malley, Apple Valley Citizens for Government Accountability
  • Bryen Wright, Apple Valley realtor
  • Pat Hanson, proponent, Apple Valley Citizens for the Right to Vote on Debt Act

Arguments against

Official argument

The following official argument was submitted in opposition to the measure:[1]

If Measure F passes, politicians can add costly new debt service fees to your water bill to repay up to $150 MILLION IN DEBT, PLUS HUNDREDS OF MILLIONS MORE IN INTEREST. What politicians aren't telling you is that Measure F will cost you hundreds of dollars a year for decades.

APPLE VALLEY SHOULD LEARN FROM SIMILAR SITUATIONS in California. In Felton, government took over the local water system, RESULTING IN A 67% WATER RATE INCREASE for residents. In Claremont, a judge rejected the city's eminent domain takeover and TAXPAYERS ARE NOW OBLIGATED TO PAY NEARLY $14 MILLION to pay both sides' legal fees.

Apple Valley's private lawyers are the same ones who just LOST the similar lawsuit in Claremont. Superior Court Judge Richard Fruin studied the evidence. He ruled THE GOVERNMENT WATER TAKEOVER WOULDN'T LOWER WATER BILLS and DRINKING WATER QUALITY COULD BE COMPROMISED.

"Your Apple Valley lawyers made promises they couldn't prove. Now, taxpayers are liable for $14 million in legal fees with nothing to show for it," Claremont resident Donna Lowe said. "Apple Valley, don't make the same mistake. Vote NO on F."

MEASURE F COULD SADDLE OUR CHILDREN AND GRANDCHILDREN WITH MASSIVE DEBT FOR 30 YEARS. We get HIGHER BILLS, and drinking water safety could be compromised. IN FACT NOT A PENNY of Measure F's $150 million debt GOES TO PROVIDE SAFER DRINKING WATER.

Independent expert studies provide important facts: "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." (Source: 2017 Analysis Group Study)

Read the full study at www.NoOnMeasureF.org

Join us. Vote "NO" to $150 million in new debt. VOTE "NO" ON MEASURE F. [2]

Path to the ballot

See also: Laws governing local ballot measures in California

This measure was put on the ballot through a unanimous vote of the Apple Valley Town Council on March 9, 2017.[1]

Recent news

The link below is to the most recent stories in a Google news search for the terms Apple Valley Local water Measure F. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

See also

External links

Support

Opposition

Footnotes