Document text
Most Rogue Valley cities don't expect money soon By GREG STILES Administrators for Rogue Valley cities that have been left without their usual franchise fee payments aren't holding their breath for Qwest to pay up. At least one city will have to cut some budgeted spending if a check doesn't come soon. "If (the court ruling) stands, it's fabulous news, obviously," said Medford Assistant City Manager Jef Faw. "But we fully expect the decision is going to be appealed by Qwest. We're not going to change our long-range financial decisions based on what we heard today. We're going to build the budget for 2003 without that revenue included." Qwest stopped making franchise payments to cities statewide, about $600,000 annually to Medford alone, in July. At issue is whether cities have the right to collect fees from private enterprise based on the use of public rights of way. Ashland City Manager Greg Scoles also said it's likely Qwest would appeal, but unlikely that the telephone company would prevail. "We felt confident all along that our position would be upheld," Scoles said. Ashland normally receives about $200,000 in franchise fees each year from Qwest - about 5 percent of the city's general fund revenues. "It still makes our budget process difficult," Scoles said. "This was a very quick ruling by the judge. I think it was one of his intentions so that cities involved in budgeting could make some decisions. But I don't think it would be prudent to budget for $200,000." Smaller cities with smaller payments, like Central Point, may be expecting their franchise payments to come on time. Central Point Finance Director Bill Brugger said "We have an annual payment by Qwest verses big cities that have monthly or quarterly payments. Our payment is due March 31. The amount would be somewhere in neighborhood of $80,000. Brugger said all the franchise fees the city collects from cable TV, electric, phone and other utilities make up about half of the city's street maintenance funds. The other half comes from the state via the motor vehicle tax. "Unless this decision is quickly appealed then we will be wildly anticipating our check to be in the mail sometime in March," Brugger said. "If ... we don't get it, we will have to cut back in places. We are expecting to do some street paving in the spring, which would not be possible without those funds." Free-lancer Buffy Pollock contributed t this story. Reach reporter Greg Stiles at 776-4463 or e-mail [email protected] . Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2001 Mail Tribune, Inc.