Cash Fax Loan No Service 20

Some question city's internal loans for Fibrant

By Emily Ford

eford@salisburypost.com

SALISBURY - After learning fibers will borrow millions of dollars in city funds, some local businessmen are demanding more transparency for city services broadband.

"People are starting to feel funny about it," said Bill Wagoner, Vice Chairman of Planning Salisbury and commercial builder and contractor. "Many people say how is it going, really?"

City Manager David Treme said internal loans are good business and save the city from high interest rates.He acknowledged the city needs to do a better job of communicating about Fibre.

The largest city ever capital expenditure once, fiber has been built entirely with borrowed money.

Given that the city should "lean back to match the company with communication," said Rick Wagoner, former president of the Commission Rowan County Economic Development. "We must go to extraordinary means to explain how he did. "

Wagoner and others told the Post they were surprised, after studying the city's 2011-12 budget, to learn fiber would borrow money from the city.

Until 2013, Fiber plans to borrow more than 7.5 million of city funds, including the capital reserve of water and sewer, at 1 percent interest. It's over $ 33 million in bonds the city sold in 2008 to build fiber to the home network and the Customer Service Centre.

Acute City Fibers for taxpayers as a fund company that is distinct from other city operations, said Carl Repsher, a member of Salisbury Planning Board and retired chemical engineer.

"We are quite deliberately mixing with funds," he said. "There is concern among professionals in the city.Concern over a large scale. "

Repsher, who acknowledged that he can run for city council, said his criticism is not politically motivated. It is a client Fibre.

Bob pullout, a commercial real estate broker, said he was already alarmed at the price of Fibra had exceeded $ 30 million when he learned of additional loans.

While borrowing money is given internally as a "common business practice", the loans must be repaid, said Trundle.

And without more information of the city on the projections of subscribers and revenues, he says, is a concern.