Should the Council approve an AFN wholesale and retain rate increase to offset an increase in operating expense?
Interim Information Technology Director Michael Ainsworth provided the staff report. The rate increase would cover inflation driven expenses that were growing faster than revenue that was currently on target but would result in a $70,000 overage in expenses by the end of the fiscal year. The increase in expenses came from materials. The proposed rate increase would affect the wholesale resident internet services and not agreements with SOU, the hospital or the school district. The minimum rate increase would cover the projected overage and expenses for the fiscal year and would be the first increase for 90% of AFN customers since 2005. Pending FCC approval, the industry was moving towards a consumptive base rate that would eliminate the need to come back to Council for future rate increases. Public Hearing open: 8:56 p.m. Public Hearing closed: 8:56 p.m. Councilor Jackson/Silbiger m/s to approve Resolution #2008-38. Roll Call Vote: Councilor Silbiger, Jackson, Hartzell, Chapman, Navick
