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Things are looking up for Bruce Telecom By Liz Dadson |
Kincardine council To Comment on this article Click Here |
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After a couple of difficult years, things are looking up for Bruce Telecom. Holly Robinson-Colley, chairperson of the board of directors of Kincardine's municipal telephone company, was at the council meeting last night (Jan. 19) and introduced chief financial officer Bart Cameron who brought the good news. Cameron noted that 2010 turned out to be a better year than anticipated and 2011 has begun even stronger. The company's $5.5-million infrastructure project is under way and the investment means a vast improvement in service and coverage for customers, plus extensive growth in Bruce TV and Bruce Mobility programs. The 2011 budget calls for operating revenues of more than $18-million, cost of service and sales at $3.4-million, operating expenses of $10.7-million, and amortization of $3.37-million, leaving income from operations at $551,444, up almost $40,000 from what was projected. The total capital budget is $4.36-million, including $2.1-million for base capital and $2.27-million for the infrastructure upgrade. Cameron said Bruce Telecom has begun 2011 in a strong cash position, allowing for capital projects to be entirely funded by operating cash-flows. "The forecast indicates no debt financing will be required in 2011," he said. The dividend to the municipality this year will be $1-million, paid in four equal payments at the end of each quarter, said Cameron. The 2010 dividend was $800,000. Bruce Telecom is asking council to approve the operating budget, the capital budget and the annual dividend payment of $1-million. "This is good news for the taxpayers of the municipality," said councillor Maureen Couture, noting that council can use the extra $200,000 to reduce the tax rate. She encouraged residents to realize what Bruce Telecom means to the taxpayers of Kincardine and act accordingly. Councillor Kenneth Craig asked if the $1-million dividend is a result of the formula that council approved about two years ago.
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"It wasn't systematically based on that formula," said Cameron. "The number fits in with our operations." "My main concern is that the business is healthy," said deputy mayor Anne Eadie. "You're doing a good job, and this dividend bodes well for the community. However, the business has to be competitive; that's number one." Councillor Ron Coristine said Bruce Telecom is celebrating its 100th anniversary this year and has an important story to tell of how the business began. "Not right now," he said, "but it's an interesting and unique story. Also, the taxpayers should know that without the $1-million dividend from Bruce Telecom, the tax rate would increase by 18 per cent just to maintain the services we have. This is a significant asset for the municipality." Council agreed it should show the effect Bruce Telecom has on the tax rate, by adding that information to the tax bills. Council also agreed to support the proposed 2011 operating budget, capital budget and $1-million dividend to the municipality. An official motion will come for final approval at the next meeting. Scrolling stops when you move your mouse inside the scroll area. You can click on the ads for more
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