Blog

City Releases City Cable Appraisal and Purchase Agreement

Mar 25, 2014

City Cable – 2013 Yields Highest Profits Since Inception of $642,693

I have now received both the City Cable purchase agreement and consultant’s appraisal of City Cable. If you read something in the agreement that you think needs to be known, please comment below. For your protection, you are welcome to stay anonymous by commenting under the name “Visitor” and the email address of “questions@semo.net” if you prefer.

One of the first things I noticed was how much money that City Cable profited in 2013. I was under the impression that council members were told that City Cable was losing money. But according to page 104-105 of the Purchase Agreement PDF file, the city actually profited more than $642,000 in 2013. That’s not fuzzy “EBITDA” numbers either, that’s pure profit. I get that number from:

REVENUE OVER (UNDER) EXPENDITURES       $275,429
                                        PLUS (+)
TRANSFER TO BUILDING CORPORATION        $367,264*

* This is the bond payment for the city cable bond. City Cable includes this principal payment in their books as an expense for cash flow reasons, but it is always removed by the auditors because one cannot both depreciate an asset and expense the principal payment used to purchase that same asset. Therefore, when the audit is complete this summer, the City Cable will show a $642k profit.

 

 

This means that we just sold an asset for a $11M profit which generated the citizens $642,000 in a single year and, with proper management, could be generating over $1,000,000 in revenue each year for the city while maintaining control over this extremely vital service for years to come.

Ord. 7483 – Cable Asset Purchase Agreement

3-17-14_City-of-Poplar-Bluff_Cable-System-Appraisal