You assume, Denyse, there will be no new subscribers.
If the system is upgraded and expanded its reach will expand. More people
will sign on to the system, increasing revenues.
This plan is not excluding WiredWest or MBI. In fact, if we invest in our
own system, show viability, then approach WW or MBI, we stand a better
chance of receiving state aid to further improve the system.
To project that Warwick will lose half of its population in the next 10
years is, I think, a worst case scenario. The w.c.s. rarely happens, so I
generally don't put much stock in it.
I think this discussion is EXACTLY what the L was created for. Great job,
Ed Hawes!
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On Sat, Apr 30, 2016 at 10:39 AM, Denyse Dar <denyse@xxxxxxxxxxxxx> wrote:
(Sorry..I'm on digest so I respond once a day)
Since Broadband only services Warwick residents, it is reasonable to say
that when Warwick's population decreases, Broadband customers will too. So
my question is, "Would Broadband still be able to make the proposed loan
payment amount if it had half the customers?
If broadband currently operates at a 30-40k surplus annually and the loan
amount is 240k and the interest at 1 or 2% then how exactly could that
possibly be paid off in 5 years? A 0% interest loan would take at least 6
years with us throwing 40k at it annually. At 30k, that would be 8 years.
Again - at no interest and that's with the provision that Broadband loses
no customers through the loan period to retain its current profit margin.
Is there a loan match or a grant or reserves involved that I missed because
the numbers aren't adding up.
I personally support Warwick on Broadband. I believe in anything that
keeps Warwick money in Warwick. But I don't see connectivity as an "us vs.
them" proposition. I have no need to shut out Time Warner or WiredWest
because we have Broadband or vice versa. I see it as an open market
providing residents with options of what works for them. But there are two
issues that personally give me pause when considering a loan :
1. Future Projections. Equipment needs constant upgrades (current
situation case in point) as technology advances. Will Broadband still pay
for itself with half the subscribers? Will it be able to afford future
upgrades if there are only 375 users? And who and how will this system be
maintained when David is not here? Do most Town Administrators know how to
run a Broadband system or are chances high we'd have to hire a Network
Admin in conjunction with a Town Administrator? Is the system "state of
emergency" worthy? In short, because of the projections, I want to know
with due diligence that we're not pouring more money into something that
down the line winds up abandoned because we don't have the means to
maintain and operate it.
2. Fair and Equal Access. Against my better judgment, I'd vote yes in a
New York minute if Broadband was borrowing to ensure all of Warwick had
equal access. But it's not. It's talking about a considerable increase to
lucky customers, an incremental increase to trapped customers and still
does nothing for those with zero access. I've watched a lot of my friends
struggle with connectivity the past 4 years - mostly families (and one
computer professional.) My friend Erika has even openly vented about it
here on the L. If Broadband is a town wide effort then it needs to be
equitable and accessible town wide first. Spend the money and approve
necessary edits that are good for everyone and then talk upgrade.
In short, I don't understand the big rush over broadband like we're
working against some ticking bomb. We're not. It's an upgrade..not an
emergent repair. And knowing we face future financial challenges that
require forethought makes me even less inclined to hop on a hooting and
hollering bandwagon that's flying by with people hanging out the windows
screaming that I have to get on right now. No, no I don't.
denyse dar
Painting the world happy!
www.denysedar.com
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