And M-I Connection wants another $400,000 from the state of North Carolina in the form of a sales tax rebate. Revenues for the 15,000 subscriber system are projected to only be $16.16m. or seven percent below the $17.37m. expected just back in June.
The towns of Mooresville and Davidson made up the $576,604 deficit after having spent $92.5m. — $12m. more than initially expected — to acquire and upgrade the old Adelphia cable system. That is General Fund revenue ladies and gents, exactly what proponents of buying the system swore would never, ever happen. In fact, Davidson came up with almost half of the $180K the town is handing M-I Connection by not spending $86,855 to hire a police officer and a police records clerk.
Davidsonnews.net adds this ominous detail:
Still unknown is what the 2010-11 budget might look like and how much, if any, shortfall the towns might have to make up. With principle payments of $2 million to $2.5 million coming due on some of the towns’ $92.5 million of borrowing, debt payments could approach $7 million next year. This year, interest payments will total $4.6 million.
What a completely avoidable disaster. The system has to start adding customers at a high rate to have any hope of not leaving the towns on the hook for millions more.
Bonus Observation: Mecklenburg County should demand its $1.2m. back from the fool “consultants” who studied this wonderful idea of state-owned broadband. The towns too.
