Update on RS Fiber Financial Situation – shortfall notification

The Arlington Enterprise reports…

The RS Fiber Cooperative is facing a projected financial shortfall. Based on information recently provided by the RS Fiber Cooperative, a shortfall is projected within the next two years which will impact loan payments for the 2015 A General Obligation Tax Abatement Bonds issued to fund an economic development loan to the RS Fiber Cooperative.

“Our duty is to report the estimated shortfall for the next two years so that member cities can implement tax levies to fulfill their obligation to replenish any shortfalls in debt service payments,” Shannon Sweeney of David Drown Associates, Inc., said in a letter to the nine cities.

Here are the numbers…

The projected shortfall will be $298,964.25 on Feb. 1, 2019; $156,066.25 on Aug. 1, 2019; $446,066.25 on Feb. 1, 2020; and $152,542.75 on Aug. 1, 2020. Overall, the projected two year shortfall will total $1,073,639.50. The member cities include Green Isle, Gaylord, New Auburn, Fairfax, Gibbon, Winthrop, Lafayette, Stewart and Brownton.

Green Isle has already discussed the issue…

The Green Isle City Council discussed the projected financial shortfall at its regular meeting on Tuesday night, Aug. 14. Green Isle will be asked to replenish $18,356.40 on Feb. 1, 2019; $9,582.47 on Aug. 1, 2019; $27,388.47 on Feb. 1, 2020; and $9,366.12 on Aug. 1, 2020. The total will be $64,693.46. The consensus of the Green Isle City Council is that the RS Fiber Cooperative needs to be much more transparent with the member cities.

This entry was posted in Cooperatives, FTTH, MN, Vendors by Ann Treacy. Bookmark the permalink.

About Ann Treacy

Librarian who follows rural broadband in MN and good uses of new technology (blandinonbroadband.org), hosts a radio show on MN music (mostlyminnesota.com), supports people experiencing homelessness in Minnesota (elimstrongtowershelters.org) and helps with social justice issues through Women’s March MN.

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