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Falcon agent objects to city network Ashland says plan aids reliability By DANI DDOGE ASHLAND -- In a city Budget Committee meeting Thursday, the manager of Falcon Cable criticized Ashland's plan to provide a competing cable service to city residents. "As a local taxpayer, I seriously question the use of electric fund and general fund tax money to build AFN (Ashland Fiber Network,)" said Tom Coleman, who also is an Ashland resident. "As a local businessman, I am deeply concerned about the fairness of using tax dollars -- whether the city calls them a loan or something else -- to fund a city-run telecommunications and cable TV system in direct competition with my established business -- Falcon." But members of the city staff and budget committee explained that proceeds from revenue bonds, not general fund money, will be used to build the cable and Internet network. The bonds will be paid back by fees from those who use the network. And the $1 million being borrowed from the city's electric and equipment funds will be paid back within four years with interest. "This is not unusual," Councilwoman Susan Reid said of borrowing from one fund to finance short-term debt in another. "It's consistent with what's been happening for 20 years. We are trying to do something to benefit the community." Cities can issue revenue bonds without a vote of the people because no tax money is involved. City staff members Thursday presented the budgets for the electric department and the Ashland Fiber Network to the Budget Committee, which is made up of seven citizens and the council. The council is expected to adopt the final budget in June. The City Council authorized the fiber-optic ring in 1997 so the city's electric department could automate meter reading, detect outages and tampering, and manage the power system more effectively. In September, the council adopted a business plan for the Ashland Fiber Optic Network, including the provision of cable television, high-speed data transmission and Internet access. The city's goal is to provide lower prices and faster service as well as cable programming chosen by residents. The network's motto is: "Better, Faster, Cheaper." About $4.8 million worth of debt is expected to be issued to pay for AFN. About $750,000 is expected to be borrowed from the city's equipment fund, and an additional $250,000 from the electric fund. The city has already spent about $750,000 on AFN, and entered into a contract with the school district to provide data and Internet services. Staff members said the fiber ring will benefit even those who do not sign up for the service because it will make the electric system more reliable. "It's not about TV. It's not about Internet. It's about reliability," said Electric Department Director Pete Lovrovich. Today's Business Index Mail Tribune Copyright � The Mail Tribune 1999, Medford, Oregon USA