| Background: |
As part of the work done by the AFN Advisory Committee,
a quarterly report format was developed. The first report was completed in
November 2001. While we continue to exceed Business Plan projections for
Residential CATV, Residential Cable Modems and Bulk CATV accounts, the High
Speed Data Accounts are not meeting plan targets. The worldwide high tech
recessions has also effected Ashland and at last count over 13 businesses
that were high speed data customers of AFN have either totally ceased to
exist or have closed their Ashland operation.
The reduction in revenue, because of the shortfall in Data Accounts,
equals nearly $13,000/month or $156,000 per year. Total revenue for the entire
year is $1,981,360 or $130,980 less than the plan projection of $2,112,340.
Cable TV and Internet rates were increased May-June 2003 and
this increase alone should increase yearly revenue by $175,000, given current
subscriber counts.
Staff is in the process of revising the business plan based on
FY2002-03 financial information and additional information supported by 2
years of experience operating AFN.
Staff hopes to have this revision done by mid-August for presentation
to the Council, Budget Committee and the AFN Advisory Committee. |
