Everything listed under: municipal bonds

  • Gaylord Overlooks “Substantial Risks” to City in Approving Taxpayer-Backed Telecom Bonds

    FFM Follow Up: City Council votes to publicly release previously withheld analysis of financial risks-- Despite a memo from the city’s bond counsel warning of “substantial risks”, the Gaylord City Council has voted to guarantee to pay up to 16.5 percent of the debt service on $77 million of revenue bonds should the proposed RS Fiber telecom network fail to pay for itself. The bond risk analysis prepared for the city at a cost of $1,500 to taxpayers was initially withheld from the public under a ...

  • Gaylord Officials Keep Report Secret on Risk to Taxpayers with $70 Million Telecom Network

      --Officials in the city of Gaylord have informed the Freedom Foundation of Minnesota (FFM) they will not make public a key analysis of the potential financial risks posed by a plan to invest $70 million in bonding for the RS Fiber telecom network.  Proponents of the municipal broadband project expect RS Fiber to start paying for itself after three or four years. If not, a $4.5 million reserve fund replenished by local taxpayers in eleven cities and two counties partici...

  • Monticello Stops Bond Payments on Troubled Municipal Telecom

          Is city headed toward default of $26 million in bonds?     The City of Monticello has notified bondholders that it plans to stop repayment of $26 million in bonds for the troubled FiberNet Monticello telecom system, due to a shortfall in operating revenue from telecom subscribers. This development marks the most dramatic step yet in the downturn for what was once a nationally touted municipal telecom model.

  • FiberNet Management Company Parts Ways with Troubled Monticello City Telecom Network

         Hiawatha Broadband Communications pulls out amidst a range of concerns-- The news just keeps getting worse for the troubled Monticello publicly financed telecom system.  Recent news reports and events continue to confirm that Mayor Clint Herbst was right when he admitted “we shouldn’t be in the telecommunications business at all”. Following up on the heels of FiberNet’s 2011 loss of $2.6 million (in spite of receiving a one-time $1.5 million legal settlement), ...

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