Town’s water system offer far below its value

MOORESVILLE – The Mooresville Town Council recently took another step down the path toward a hostile eminent domain takeover of Indiana American Water’s Mooresville water system. An offer by the town to purchase the system for $6.5 million without providing additional opportunities for public input is yet another example of its disregard of the taxpayer’s role and interest in this issue — and their intentions to proceed forward regardless of the implications. The costs for the town council’s hostile government takeover attempt continue to pile up at the taxpayer’s doorstep. Government takeover proponents routinely underestimate the value of systems to obtain public support. Taxpayers are inevitably left holding the bag once the real fair market value of the system is finally litigated years later. Indiana American Water will be addressing this issue in more detail in a response to the town council later this month, but the town’s appraisal of the Mooresville water system is not a viable indicator of the fair market value of the water system. This value, which is much higher than the town’s offer, will ultimately be determined through the courts — not by a paid consultant for the town.

Councilman Tony Langley has suggested the town council’s offer to purchase the Mooresville system is unrelated to its actions in depriving Indiana American Water due process, access to public records and other matters. Those actions are now subject to a federal court lawsuit that seeks to vindicate all citizens’ rights to have the council follow lawful, constitutional and fair procedures in how it deals with citizens and property owners.

Town council members have repeatedly claimed they can run the water system more efficiently and keep rates low through government ownership. As part of the nation’s largest investor-owned utility company, Indiana American Water is in a much better position to leverage its economies of scale, expertise and group-purchasing power to keep rates as low as possible. History has shown that the eminent domain process is lengthy, costly and divisive to the community. The associated legal and consultant fees will be a constant drain on town and company resources. The legal process will likely drag on for an extended period of time and ultimately cost Mooresville residents millions of tax dollars, on top of a purchase price, and divert elected officials’ focus from more important pressing issues.

While pointing the finger at our water rates, the town council has been conspicuously silent on its own wastewater rates and performance history. While Indiana American Water has a spotless environmental and compliance record in Mooresville, the town has had four major sewer system violations in the last decade — including one this year. At the same time, the town nearly doubled sewer rates in 2010 — for an annualized rate of increase that is twice that of local water rates.

Mooresville is a conservative town where residents are cautious and thoughtful about the role government should play in their individual lives. The council’s refusal to engage residents in this process and solicit public input in an open and transparent way is a pretty good indicator that even they know they aren’t truly representing their constituents’ views on this issue. Indiana American Water is providing excellent customer service at an affordable rate to its Mooresville customers. The town council’s radical actions to take over a well-run private business for no good reason puts them out of step with the people they have been elected to serve. It’s time for the town council to reconsider their current course of action, focus on issues that really matter to town residents and get their own house in order.

Alan DeBoy, president, IAWC

Editor’s note:

Mooresville Town Council president George Watkins said last week that the town had not yet received a formal response to its purchase offer. He said a lot of research has gone into the decision to purchase the water system and the purchase price. Watkins said that the $6.5 million remains the town’s offer.

Published December 12th, 2012 in The Reporter Times