Council Communication

Meeting Date:	April 26, 2005		Primary Staff Contact:	Dick Wanderscheid, 552-2061 wandersd@ashland.or.us
Department:	Electric & Telecommunications		Secondary Staff Contact:	Lee Tuneberg, 552-2003 tuneberl@ashland.or.us
Contributing Departments:	Finance, Administration
Approval:	Gino Grimaldi

Statement: This is the AFN Quarterly Report covering the period January 1 to March 31, 2005.
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Background: This report covers AFN's customer counts and financial status for the 3rd Quarter of FY04-05. The report includes actual results and targets from the revised proforma. All Navigant recommended activities have now been completed in some form. Results have fallen short of the response predicted by Navigant. Cable TV numbers stood at 3,214 at the end of March and showed no growth during the quarter. The Navigant target is 3,532 by June 30. Cable Modem counts stood at 3,735. This compares to the new target of 3,842. Bulk TV and High Speed Data Counts remained the same as the last quarter's numbers.
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AFN Financial Narrative: The cash balance increased from $551,742 on December 31 to $564,997 on March 31. Full realization of the rate increase for the remaining 3 months should continue the trend of increasing the cash balance for the rest of the year depending on needed capital expenditures and operational expenses. The target cash balance for March 31 is $762,813. In order to cover the $802,000 debt service payment in July, 2005, an outside source of cash of around $200,000 will be needed this fiscal year. Revenue exceeded expenses by $12,002 for the quarter and $3,703 for the first 9 months of the year.
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Related City Policies: The City of Ashland's current Council Goal document points to improving the performance of AFN. This quarterly report is specifically devoted to keeping the Council current on AFN's status.
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Staff Recommendation: None.
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Potential Motions: None
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Attachments: AFN Quarterly Report