Quantcast

Burlington Telecom denied city $ for bill - WCAX.COM Local Vermont News, Weather and Sports-

Burlington Telecom denied city $ for bill

Burlington, Vermont - February 16, 2010

The Public Service Board says Burlington Telecom cannot use public money to make a $386,000 interest payment due Wednesday. The cash-strapped utility is $51 million in debt. It hoped to get PSB approval to dip into the city's cash reserves to avoid defaulting on the loan. But word came Tuesday evening that request has been denied. The Public Service Board denied a motion to use the city's pooled cash reserves to make the payment to lender Citi Leasing.

In its statement, the PSB said Burlington Telecom "failed to present sufficient, reliable information to provide a basis for granting the motion." And the PSB said Burlington Telecom filed its motion too late, which prevented it from collecting evidence and conducting a full and fair hearing.

Mayor Bob Kiss, P-Burlington, issued a statement saying he is extremely disappointed in the board's decision, adding that it jeopardizes efforts to preserve and strengthen Burlington Telecom.

"Allowing BT to make its February payment using pooled cash would have given the City the time it needs to arrive at a more lasting and sustainable solution to addressing the issues it currently faces," Kiss wrote. "Without the ability to use pooled cash for the February payment, taxpayers and BT operations are placed at a greater risk."

City Council President Bill Keogh told WCAX News he is not surprised by the decision, based on the tenor of the last week's PSB hearing, in which Burlington Telecom requested this motion.

"The city has a real challenge to get out of this mess," Keogh said. "I hope it is not at the expense of the taxpayers."

With the payment due Wednesday, it is not clear what the city will do. Kiss says the city is discussing this situation with its financial advisors.

"While this decision limits the City's options," he wrote in the statement, "we will consider every alternative to meet BT's immediate needs and move forward to establish a stronger telecom enterprise for the City and BT's 4600 plus customers."

Click here to read the Public Service Board's order on Burlington Telecom.

Click here to read the response from Mayor Bob Kiss.

Kate Duffy - WCAX News

  • Local NewsMore>>

  • N.H. man killed in Lunenburg crash

    N.H. man killed in Lunenburg crash

    Monday, September 1 2014 11:33 PM EDT2014-09-02 03:33:55 GMT
    One man is dead following a tractor trailer rollover in Lunenburg.
    One man is dead following a tractor trailer rollover in Lunenburg.
  • 2 charged with skid-steer joyride on I-89

    2 charged with skid-steer joyride on I-89

    Monday, September 1 2014 10:15 PM EDT2014-09-02 02:15:25 GMT
    The theft of some construction vehicles caused chaos on the Interstate this weekend.
    The theft of some construction vehicles caused chaos on the Interstate this weekend.
  • Bike racers wrap up weekend events

    Bike racers wrap up weekend events

    Monday, September 1 2014 9:59 PM EDT2014-09-02 01:59:03 GMT
    The Green Mountain Stage Race took to the streets of Burlington Monday.
    The Green Mountain Stage Race took to the streets of Burlington Monday.
  • Allergy sufferers brave ragweed season

    Allergy sufferers brave ragweed season

    Monday, September 1 2014 7:08 PM EDT2014-09-01 23:08:26 GMT
    If you're sneezing, your nose is running and you're eyes are itchy once again this year -- you're not alone. Fall pollen counts are peaking in our region and proving tough for allergy sufferers looking to enjoy the outdoors.Despite a spate of heat and humidity, the signs of fall are undeniable. Cooler temperatures and color are on the way. And even though many think of spring as "allergy season" due to tree pollens, this time of year can be particularly tough for allergy sufferers, too -- bec...
    If you're sneezing, your nose is running and you're eyes are itchy once again this year -- you're not alone. Fall pollen counts are peaking in our region and proving tough for allergy sufferers looking to enjoy the outdoors.Despite a spate of heat and humidity, the signs of fall are undeniable. Cooler temperatures and color are on the way. And even though many think of spring as "allergy season" due to tree pollens, this time of year can be particularly tough for allergy sufferers, too -- bec...
  • Holiday drivers find lower prices at the pump

    Holiday drivers find lower prices at the pump

    Monday, September 1 2014 6:59 PM EDT2014-09-01 22:59:21 GMT
    Drivers this holiday weekend found lower gas prices at the pump.
    Drivers this holiday weekend found lower gas prices at the pump.
  • Sanders addresses Labor Day rally

    Sanders addresses Labor Day rally

    Monday, September 1 2014 6:51 PM EDT2014-09-01 22:51:52 GMT
    Community members gathered in Burlington's Battery Park Monday to celebrate Labor Day -- and hear from Senator Bernie Sanders.Union leaders addressed the importance of employees supporting one another. They also thanked the community for supporting Vermont's unions. Senator Sanders says the holiday is for working people to not only celebrate their gains, but to also address issues facing the working class."There's a lot of work in front of us if we're going to make sure that our kids and our ...
    Community members gathered in Burlington's Battery Park Monday to celebrate Labor Day -- and hear from Senator Bernie Sanders.Union leaders addressed the importance of employees supporting one another. They also thanked the community for supporting Vermont's unions. Senator Sanders says the holiday is for working people to not only celebrate their gains, but to also address issues facing the working class."There's a lot of work in front of us if we're going to make sure that our kids and our ...
  • Authorities seize animals from Santa's Land

    Authorities seize animals from Santa's Land

    Monday, September 1 2014 4:32 PM EDT2014-09-01 20:32:03 GMT
    The Windham County Sheriffs Department says it seized multiple animals from the theme park this weekend.
    The Windham County Sheriffs Department says it seized multiple animals from the theme park this weekend.
  • Body discovered in Massena

    Body discovered in Massena

    Monday, September 1 2014 4:02 PM EDT2014-09-01 20:02:43 GMT
    New York State Police are investigating an unidentified body found in Massena.
    New York State Police are investigating an unidentified body found in Massena.
Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and WCAX. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service.