.jpg)
By the Freedom Foundation of Minnesota
ST. PAUL — 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. The decision to suspend bond payments appears to be unprecedented for a local government telecom system in Minnesota.
“Net revenues of the System are not sufficient to pay both operation costs and debt service payments on the Bonds,” according to a June 6, 2012, memo signed by Jeff O’Neill, city administrator.
Read the complete story at Freedom Foundation of Minnesota
