Updated Tuesday, 5:15 p.m.
MI-Connection Communications System has published a 1-page budget summary in advance of a public hearing Thursday on the proposed 2011-12 budget. The system, owned by the towns of Mooresville and Davidson, would keep operating expenses relatively flat – at $15.5 million – and reduce slightly what the the system needs from its owners, the towns of Davidson and Mooresville.

The system will ask the two towns for $5.88 million for the fiscal year beginning July 1. That’s down about 8.8 percent from this year. Davidson’s share would be $1,943,116, while Mooresville’s would be $3,945,114.

The towns share ownership of the system based on the ratio of customers from each town. The budget published Tuesday puts Mooresville’s share at 67 percent, Davidson’s at 33 percent, using numbers set in June 2010. That ratio will be recalculated this June, and could affect the relative contributions of the two towns. Davidson officials have said the ratio of customers may be shifting toward Davidson.

Davidson and Mooresville are in the midst of planning their own budgets for the coming year, and will incorporate the MI-Connection figures in the spending plans they must approve by June 30.

According to the summary, MI-Connection is proposing operating spending of $15.5 million for the coming fiscal year, up from $15.4 million this year. Capital spending would decline slightly, to $2.24 million, from this year’s $2.58 million.

Revenues are projected to rise 12.6 percent, to $17.5 million, helped in part by an April 2011 price increase and anticipated growth in telephone and internet services.

Unlike previous years’ budgets, the 2012 plan projects no growth in cable TV lines, which reflects MI-Connection’s recent experience. “I personally believe that we can grow the business, given some of our recent investments, and some of the things we’re seeing in the economy,” General Manager Alan Hall told DavidsonNews.net. “But we’re taking a fiscally conservative approach and budgeting flat.”

The proposed budget does not take into account plans by Davidson and Mooresville to alter the way they operate the system. The towns are in the midst of negotiations with their third-party operator, BVU of Bristol, Va., to set up their own operating unit and to bring many functions in-house. The change is designed to give the towns more control over marketing and operations and ultimately to save money.

“We anticipate the transition will happen, but we haven’t budgeted for the shifts,” Mr. Hall said.

The budget summary shows that the towns are expecting to spend a total of $138,280 this budget year and $23,217 in Fiscal 2012 on transition related expenses. That includes the cost of a consultant, David Auger, who is helping the system negotiate with BVU and set up the new entity to run the network.

HEARING THURSDAY

MI-Connection’s Communications System Board of Directors will hold its monthly meeting Thursday, May 26, at 6:30 p.m., at Davidson Town Hall, 216 S. Main St., Davidson. The meeting includes a public hearing on the system’s 2011-12 budget.

RELATED LINKS

Download a copy of the proposed budget (PDF), CLICK HERE »

March 11, 2011, “MI-Connection says cash needs total $17M through ’13”

Dec. 2, 2010, “Towns eye relationship changes with cable operator”