The advice given to the City of Tifton earlier this week regarding CityNet sounds reasonable.
At the end of November, the City Council hired Ed Rutter of the Georgia Municipal Association to review the operations of the city's cable, Internet and phone service provider and make recommendations on the city’s next move.
Rutter presented his report Monday, advising council to divide CityNet's commercial and governmental services into separate entities and sell the commercial division.
Since CityNet opened in 1998, it has cost the city — and indirectly taxpayers — millions of dollars that remain to be paid off. The bonds and internal debt associated with CityNet are still looming over city residents' heads and will begin coming due in the next few years.
At the same time, having CityNet here has meant increased competition and therefore lower service rates for residents. We would probably have had to wait longer for high-speed Internet to make it to Tifton, and the system makes it possible for local governments to receive services here.
Keeping the governmental division would keep the city from having to pay another company for those services and seems worth considering, but the time has come for the city to plug the money drain on the commercial side, that is if a buyer can be found.
Even though the city is almost certain to lose money on the sale, at least it won't continue losing any more. And in this uncertain economy, that's a priority.
Opinion
February 19, 2009
Plug the drain
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