Becker To City Council: Bach's Numbers Show City Cable Is Losing $1 Million on MyCityCable!
The following information was relayed by Brian Becker to City Council on Monday, Aug 2, 2010. Additional supporting information has been added for clarity:
According to Mr. Bach, every time a light switch is turned on or the faucet is opened, citizens are subsidizing MyCityCable to the tune of over $1,000,000 each year.
I am on record stating that these numbers ARE NOT accurate and the city IS NOT losing money on Internet.
At July 19th’s City Council meeting, Utilities Manager, Bill Bach, presented a five-page document of financial information to convey to the Council the need to raise the rates of the Open Access Internet partners and end an eight-year ordinance of Open Access on the City Cable network.
On the third page of that document, Mr. Bach stated the annual expense to run City Cable’s Internet service is $2.5 million dollars.
However, only six weeks earlier, Mr. Bach made a presentation at the Utilities Advisory Board, which was attached to the minutes of that meeting, which showed City Cable’s 2010 budget. City Cable only expects to receive $1.44 million dollars in revenue for Internet service, that’s an annual loss of over $1.1 million dollars.
$ 1,230,000 Internet income – 2010 budget (supplement 1)
$ 210,000 Cable Modem Rental income – 2010 budget (supplement 1)
$ 1,440,000 Total Revenue for Internet plant
$ 2,500,267 Operations & Maintenance (supplement 2)
($ 1,060,267) Annual Loss by City Cable
During that council meeting, Councilman Matthews inquired about the accuracy of the figures in Bach’s five-page document.
City Manager Bagby replied,
“The utility manager and Terry Leslie all looked at these. Uh, I know two of them independently and come up with very similar numbers. Are the numbers arguable? Yeah. Are they, uh, are they grossly negligent? Uh, no way.”
If their numbers are correct and the City is subsidizing Internet by over a $1 million per year, our city needs new managers.
If their numbers are incorrect, our city needs new managers.