As reported in this week’s “Fair Game”, Burlington Telecom is seeking approval to make a February 17 payment to CitiLeasing on the order of $390,000.
It was also noted that BT was prepared to make the payment from its current cash flow and not borrow any money from the city’s “cash pool.”
Guess what? BT officials told Seven Days today that, in fact, they may need to borrow an undisclosed amount of money from the cash pool. However, BT claims it will be able to repay the money within 60 days, per the conditions of their certificate of public good.
Where have we heard that before?
In November, BT borrowed about $265,000 from the cash pool to cover some operating expenses and a portion of their lease payment, according to Chris Burns, BT’s general manger.
In their pleading to the Public Service Board, BT argues that it “plans to have sufficient funds to make a portion of these payments, but may need to access pooled cash for the remainder. As just stated, however, BT will have sufficient receivables to repay pooled cash within 60 days.”
The PSB hearing is slated for 1 p.m. Thursday in Montpelier. On Friday morning, Chittenden Superior Court Judge Helen Toor will preside over a hearing where two Burlington residents are seeking a temporary restraining order against BT from spending any more money — in particular the Feb. 17th interest payment.
This article appears in Feb 10-16, 2010.
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Let it die. It’s over.
I am so disgusted by Bob right now and I voted for him 1st! What a mistake. I am just so sick of this. Bob, for god sakes and for your reputation’s sake, Fire Jonathan before you lose all credibility and become a lame duck. I’m begging you. Bring someone in with business and political savvy that has experience in running a city and not someone with an ego the size of the state. Your administration has become ethically challenged and you really need to start at the top and clean house. The fact that you tried to alter the Blue Ribbon Commission’s recomendations is just so short sighted. I love BT but if we want to move forward, you’re going to need to get a new team in place. There is nothing wrong with admitting that you F’ed Up. For the utilities sake and for the cities sake, Fire Jonathan or have him step down on his own and get someone new in there.You’re political obituary is being written right now and you risk becoming irrelevant and this is going to be a campaign issue for City Council. It will hurt the Progs running in the Old North End and I’m inclined to support the Democrats here.
With the Mayors return of the BT report to the BRC in an edited state shows a blatant disrespect to the BRC and their hard work, and a continued disrespect to the residents of Burlington.The Mayor, his Asst. and the CAO will never live this display of disrespect down. This administration continues to not follow any rules except their own, and we has citizens and taxpayers are the ones paying the price. I hope the voters do their part in the booth and remember those candidates that have supported this administration and vote them out.
Hey Shay, the Daily 7 e-mail announcing this story says: “… Shay Totten reports that BT may once again need to borrow money from taxpayers.” Isn’t that an as-yet unproven statement? The cash pool is a fund whose coffers are filled with fees, commerical taxes, city revenues AND taxpayer money (taxpayer money being one part of the whole). Won’t the current “forensic audit” determine if taxpayer money was indeed used towards BT?I know it sounds like minutiae, but the current undertone in town is the fear that taxpayers will be on the hook for BT. Use of funds other than taxpayer money would show a city on sound footing that can swing BT for the short term. Granted, a bigger vision has yet to be determined, but that’s for tonight’s meeting.
Tiki, since taxpayer funds are the only source of pooled cash that’s not immutable, $18m flushed out of there is taxpayer money by definition.The whole “it’s not really taxpayer money” ship has sailed – ask the PSB.
Jimmy – if the “ship has sailed”, why is there an audit taking place?BTW, the PSB is hardly the end-all be-all to the story. David O’Brien’s tough-on BT, soft-on-Fairpoint/Entergy reveals a political bent among the group. Since Shay has already written about that too, one could argue that the whole “PSB is looking out for taxpayer interests” ship has sailed.
The myth that it’s not taxpayer money was floated early on and quickly discredited, that’s what I meant by the ship has sailed. Digging into how the money was spent certainly isn’t over, and that’s as it should be. I’m sure there’s a LOT more to come on that front.Similarly, O’Brien has been lauded as an early friend of BT, so the whole “he’s out to get us” thing died a while back as well. Try to keep up. In any case, the PSB has absolute authority over BT. If they decide to shut it down, you can whine that it was political all you want, it’s still getting shut down.
I’m trying to keep up with you, Jimmy, but you appear to be better at knee-jerk reactions than me.Agreed that the PSB has finger power over BT. Doesn’t mean nobody should ask how politics plays a role in the PSB’s decision. Why didn’t O’Brien also attend Entergy’s PSB hearing, for example?BTW, O’Brien’s “early friend of BT” status was given solely by Tim Nulty, the guy who understated BT’s startup costs. Not knocking Nulty altogether as he is a very smart man and had the idea to expand outside Burlington long ago. But O’Brien’s “friendly” claim doesn’t pass the smell test.
Nulty was one of the few heavily involved early on, he has no reason to lie on this matter and no one has refuted him.