Thanks for the questions. I’d pose them to the Town Manager and Town Board directly if I were you. I will tell you what I know from covering these issues:

The approved Davidson budget is on the Town Website,
http://www.ci.davidson.nc.us/index.asp?NID=430

The town’s overall debt service equals about 9 percent of the budget for 2008-9. In some cases the debt service is covered all or in part by revenues.

In the case of MI-Connection specifically, town officials have reported that the cable system is continuing to pay for itself, including covering service on debt to buy and upgrade the system. The town also has received revenue from the system, primarily reimbursements from MI-Connection for money the town spent previously as it studied acquiring the system.

In September, I reported on financial results at the cable system, (CLICK HERE>). At the end of that article, you can click to download the fiscal year 2008 financial results released at the MI-Connection board’s September meeting.

Those results showed interest expenses of $2.09 million for the first partial fiscal year. The system had a net loss of $2.6 million, which was better than the projected net loss of $4.3 million. Looking at revenue and expenses trends only (apart from debt interest etc.), the system had an operating profit.

During the first three months of the 2009 fiscal year, the system was behind budget on operating earnings, though still showing an operating profit. That means apart from the debt, the system generates more revenue than expenses. If it is to succeed Here’s the income statement from July/August/September 08: http://www.davidsonnews.net/documents/101508miconnection2009.pdf

And the balance sheet: http://www.davidsonnews.net/documents/101508miconnxBalSheet.pdf … The system currently owes about $70 million in debt.

[Thanks for those documents to Jamie Gatton of the Gatton Report in Mooresville, who is also following the MI-Connection story along with us here at DavidsonNews.net. ]

To see all of DavidsonNews.net’s coverage of the cable system, go here
http://davidsonnews.net/category/cable-tv/

Thanks again for the question / comment.

Could we please see the interest payments and which banks are receiving the payments? Please post on the Mi-Connection website so the taxpayers have an understanding of the huge amount of debt.