Editor’s note: This letter was submitted prior to Orbia Hanks’ death Friday.
Ready for the third scenario on our Imperial Irrigation District’s long-term liabilities and debts from an outside view of external interest and potential forces/powers?
Budget information has been hard to come by since the total budgets for the current year were adopted by re-evaluations of intent. Sorry. I digress from the points in question.
We are all aware of the federal government plunging into trillions of dollars of national debt. The question is, when will the IID surpass its debt service abilities?
What if the estimated $2.5 billion long-term debt and growing liabilities trigger a hostile takeover by IID’s creditors?
We are being told the existing bonds have been refinanced to save interest fees. Yet, the principal long-term estimates in 2003 were less than $900 million compared to IID’s current $2.5 billion in 2011.
Now the questions for our future:
Who holds the papers, etc. of the IID debt?
Which creditor holds the majority of the debt?
Again, at what point or percentage of debt ownership can open the door for a hostile takeover?
Why would an entity want to take over IID? For IID’s water trust rights; for control of IID’s power/electrical base; implied real estate mergers; to continue IID’s status quo as a private company; to control the sale and delivery of water and power to coastal areas.
All of the above.
Let’s also keep in mind the Gann Initiative, a 1979 California resolution that placed limits on the growth of expenditures for publicly funded programs. Don’t stick your head in the sand thinking these scenarios are “impossible,” because you have only defined a degree of difficulty.