| Background: |
As a part of the work done by the AFN Advisory Committee in fall 2001,
a quarterly report format was developed. This first report was completed
in November 2001 (Old Plan) and reports have been submitted for each quarter
since then. The last report was submitted to the Council on May 4, 2004 and
included AFN numbers for the period of January 1, 2004 through March 31,
2004. This report will add the last 3 months of FY 2003-04 to that data.
The targets reported in the text, alongside the graphs of the report, include
the revised Navigant Pro Forma targets in the 2004 Plan and the 2001 Plan
targets. The next quarterly report will be updated with revised Pro forma
targets and also track different items to give a better indication of AFN's
performance compared to the Navigant study incorporated in the 2004 Plan.
The following table gives an idea of the end of year targets for FY 2003-04
and FY 2004-05 for both the revised plan and the 2001 plan.
JUNE 30, 2004 |
000 |
JUNE 30, 2005 |
| Revenue Type |
Old Plan |
2004 Plan |
Actual |
|
Old Plan |
2004 Plan |
| CATV |
2,953 |
3,127 |
3,100 |
|
3,034 |
3,275 |
| CABLE MODEM |
2,922 |
3,465 |
3,435 |
|
2,962 |
3,620 |
| HIGH SPEED DATA |
62 |
35 |
32.31 |
|
72 |
35 |
| BULK CATV |
125 |
140 |
143.30 |
|
150 |
140 |
Reviewing these numbers, we are 27 below the new Pro forma target for CATV,
but actually exceeded this target until the college population departed in
June reducing the number to its current count of 3,100.
Bulk CATV accounts at 143, exceed both old and new plan targets for June
2004, and actually already exceed new plan targets for June 2005. Cable Modem
accounts active at the end of June, 2004 equaled 3,435. This exceeds the
old plan target of 2,922 but falls short of the Navigant numbers by 30. We
are well prepared to respond to the returning college students and expect
next quarter results to get us back on track to meet the 2004 Plan targets
for both CATV and Cable Modem Service for the next fiscal year.
Revenue for the year totaled $2,352,631, which included the $50,000 grant
received from the Cow Creek Tribe. Total expenses were $3,655,359. This
translates into a net loss of $1,302,728. Removing the non-cash depreciation
expense of $602,866 leaves a net cash loss of $699,862 on a GAPP basis for
the year.
Preliminary budget numbers indicate the department under spent in Promotions
and Debt Service but operations exceeded the budget by $5,540. The fund
Contingency is greater than Operations' over expenditure thus keeping total
expenditures below total fund appropriations.
The City has been actively implementing the Navigant recommendations since
the formal adoption of the report and revised business plan. We have already
increased rates, begun an active TV promotion program to migrate users to
higher tiers of service, mailed out coupons for a free movie in exchange
for customers enabling their pay per view feature, added an intermediate
cable modem product, executed enhanced ISP standards and promoted our customer
service guarantee. We are also in the process of adding the additional AFN
staff included in the revised plan.
As mentioned earlier, the entire quarterly report format will be revised
for the first quarter of FY 2004-05. This will include tracking some additional
items, updating the annual targets based on the Navigant revised plan, and
using new interest and principal numbers based on the recent refinancing
of the project. |
