The board of directors of the MI-Connection Communications System on Wednesday afternoon approved the system’s $15.5 million 2010-11 budget.
The 3-0 vote came during a conference call meeting that included chairman Jon Kasberger, board member and treasurer John Venzon of Davidson, and board member Rick Howard of Mooresville. That trio represented a quorum of the voting members of the board. Steve Miller, a non-voting member from Cornelius, also participated, along with MI-Connection General Manager Alan Hall and other staff and advisers.
While MI-Connection’s budget for 2010-11 anticipates growth in revenues, that growth won’t be enough to cover the cost of payments on the system’s $92.5 million in debt.
The system’s owners, the towns of Davidson and Mooresville, will be providing about $6.46 million to subsidize the system in the coming fiscal year, which begins Thursday, July 1. Wednesday’s vote had been delayed a week because Mooresville’s town board had not yet approved its budget. Mooresville commissioners passed the town’s spending plan on Monday night.
State law requires the system to have a balanced budget. Mooresville will be paying $4.44 million to MI-Connection in the coming fiscal year, while Davidson will contribute $2.02 million.
In a related matter Wednesday, Mr. Venzon confirmed for fellow board members that while the system’s 2009-10 revenues ended the year higher than expected, officials will draw on a $576,604 subsidy that the two town boards approved earlier this year when it appeared the system would have a shortfall.
Davidson’s share is $180,189, while Mooresville’s is $396,415.
Mr. Venzon explained that the cash will give the system a small cash balance going into the 2011 fiscal year. He said the surplus would help “offset the timing of future cash from the towns.”
RELATED COVERAGE
See past coverage of the MI-Connection system on DavidsonNews.net, CLICK HERE>
DOCUMENTS
2010-11 budget summary for MI-Connection – 1 page PDF.
General Manager Alan Hall’s overview statement about the budget – 1 page PDF.
May 27, 2010, re-stated 2009-10 budget for MI-Connection (PDF)
