WATER. FACTS. - Mountain Water Company

WATER. FACTS.
YOU CONTROL YOUR WATER.
• The Montana Constitution guarantees that you
own the water. Ownership of the water delivery
system has no impact on that.
• You already have control over rates and service
through the elected Public Service Commission (PSC).
• Your water system is locally managed and
operated by experienced water professionals
— who are also your neighbors and fellow water
customers.
CONDEMNATION IS UNNECESSARY.
• What is condemnation? It is a process whereby
a government entity attempts to take private
property or assets from an unwilling seller for
a public purpose. The condemner must prove that
the taking is more necessary than current ownership.
THE CITY’S FINANCIAL PLAN
IS A COSTLY MISTAKE.
• 100% debt-financed purchase would mean tens
of millions of dollars leave Missoula as interest
and principal payments.
• Legal costs for the city are over $1.78 million and
rising — and the first trial hasn’t even started yet.
Cases like these can last years and the city will pay
the legal costs of both sides ($4 million total to date).
• Condemnation doesn’t guarantee a low purchase
price. By state statute, the city must pay fair market
value.
• The city will eliminate property tax payments that
support local schools. That’s more than $1 million
every year that will need to be made up elsewhere.
LIBERTY: A BETTER OPTION.
• Missoula’s water system is sound. And we’re
investing like never before in system improvements.
• Liberty Utilities is focused on long-term operation
of regulated utilities.
• City officials have no plan for improving
operations or service. They’ve said as much
under oath.
• Liberty aims to make Missoula a state
headquarters for growth and job creation. And,
unlike the city, they will retain all employees at current
compensation.
• City ownership won’t result in lower water rates.
In fact, the city will have to raise rates in order to pay
for the system.
• They promise Missoula solutions for Missoula
customers. They trust our local management team
and employees to continue our tradition of service
and excellence.
Background:
Since 2013, the city government made two offers to purchase Mountain Water Company from the Carlyle
Group. Neither offer was accepted. The city then chose to pursue condemnation of Mountain Water assets —
the system that provides water to Missoula residents — and that process was authorized by the city council
in October of 2013. Since that time, the case has been in litigation with an initial ruling on public necessity
scheduled for spring of 2015. Also, since that time the Carlyle Group has accepted an offer from Liberty Utilities
for Western Water Holdings, which includes Mountain Water Company. To date, the city continues to pursue
condemnation, despite the pending sale to a long-term, regulated utility operator.
YOUR WATER SYSTEM.
BY THE NUMBERS.
129:
years Missoula has been served
by a private water utility.
$4 million:
77:
percentage of Missoula voters who are
satisfied with Mountain Water’s service.
68:
average annual
infrastructure investment.
percentage of Missoula voters who are
satisfied with Missoula city government.
19:
39:
.
percentage reduction in
system leakage since 2007.
39 of 40:
Mountain Water’s fire
protection rating.
number of employees at Mountain Water
Company who have 613 years of combined
water utility experience.
0:
number of Mountain Water
employees who accepted an offer
of employment from the city.
YOU DESERVE ANSWERS.
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Given that city ownership means rates won’t go down and tens of millions of dollars
will leave the community, what financial justification exists for condemnation?
How can the city say that it will run Mountain Water better, when it has no operational plan in place?
What can the city truly afford to pay for the system, and what will happen if the fair market value is
higher than that?
MAKE YOUR VOICE HEARD.
The city can stop pursuing this unnecessary taking now or at any time. Talk with your friends and
colleagues. Write a letter to the editor. And tell the mayor and city council that it’s time to focus on
real community needs.
Your water matters. Get the facts and stay informed
by visiting www.MountainWaterFacts.com.
2/10/15