2005-09-14 CC Packet - Laserfiche WebLink

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NORTH METRO TELECOMMUNICATIONS COMMISSION Required Supplementary Information Management's Discussion and Analysis December 31, 2004 The information contained in the basic financial statements is used as the basis for the discussion presented on the following pages, surrounding the NMTC's activities for the fiscal year ended December 31, 2004. Financial Highlights · The NMTC ended the year December 31, 2004 with a net asset balance of $1,514,244 of which $645,544 represented the amount invested in capital assets and $868,700 was umestricted. This amount was $18,931 lower than the net asset balance at the beginning of the year. The decrease in net assets is attributable to a non-cash loss on abandonment of equipment at the previous address, which had been donated to the COlllil1ission in 1997. · The NMTC has minimized interest expense by paying off outstanding bond debt as funds become available. · During the course of the year, the NMTC completed construction of a new facility, which totaled $1,443,851, in addition to land acquisition of $225,000. · As a result of fiugal operations, $96,906 in franchise fees was returned to NMTC member cities. Revenuc The major sources of revenue for the NMTC include a 5% fianchise fee paid on gross revenue, earned within the boundaries of the seven members of the NMTC, and a PEG fee paid by cable subscribers monthly, as established in the Memorandum of Understanding, and subsequent franchise agreement, dated November 22, 2002. Expenscs As in previous years, wages, benefits, and appreciation make up the largest portion of operating expenses. Due to the significant investments the NMTC has in capital assets, depreciation continues to be a large operating expense. Unlike the other expenses listed, depreciation is not a cash expense. The NMTC has and continues to pursue ways to reduce costs without affecting service. P.53