HU Review @ 10-17-06 Council Meeting

Hometown Utilicom Review at the 10-17-06 Council Meeting

At the 10-17-06 Borough Council Meeting Mr. Vettraino discussed the Telecom Investment in Capital and Operation from 1999 to 2006.

Borough Manager\Treasurer Vettraino advised:

(1) That the Borough will need to budget for a substantial Capital Investment in 2007\2008 to upgrade the Borough’s television service.

(2) That the 2007 will include a Capital Investment to begin transferring the field equipment from OSI to Calix.

(3) That the Borough was making progress towards the goal to be “operationally breakeven” by 2009.

(4) That the margin between the price to the customer and the content cost for cable television is shrinking.

(5) That in order to reach full breakeven HU must increase its margin and most importantly grow its customer base, in particular business class customers.

(6) That since HU’s inception Borough residents have saved over $1 million, including $850,000 on their cable television bills.

My Current Comments to the above corresponding numbers are:

(1) Mr. Vettraino, Mayor Green Information Technology Director Caruso and the Borough Council knew in October of 2006 that HU is nowhere near supporting itself and that is the reason the Borough Council has approved a loan for $1 million for capital investment in HU.

(2) The amount of the 2007 Capital Investment to transfer field equipment has never been made public and it is another secret and illegal loan to HU from the Borough.

(3) If the Borough is making progress towards the goal to be “operationally breakeven” by 2009, why is the Borough borrowing $350,000 operating expenses in 2008? Will the Borough need another $350,000 loan in 2009?

(4) The margin between the price to the customer and the content cost for cable television was shrinking in 2006. The margin has not increased since and the Borough is forced to borrow money in 2008?

(5) How can HU increase its business class customer base when the cost of electricity and operating in the Borough is so high that businesses are leaving?

(6) Borough residents have saved over $1 million and almost all of the $1 million was saved by the cable customers that stayed with Service Electric.

The Borough Council, Mayor Green, Information Technology Director Caruso, who earns $84,056.02, and Borough Manager \Treasurer Vettraino, who earns $103,876.39, all know that HU is bankrupting the Borough. There has never been a complete financial report on HU and there are no budgets for 2006 and 2007 available to the public. The Borough is deliberately falsifying the budget and publishing fraudulent reports to secretly finance HU. The $1.35 million loan will be a bank loan because I think the Borough has lost its Triple AAA credit rating. HU should be shut down immediately.

Another question is after all the Borough increases, where are the senior citizens on fixed income supposed to get the money to live in the Borough?