Monday, May 11, 2009

Seeking a little 411 on the subject of Citywest forgiveable debt

When council does get down to work this evening, perhaps they could turn their attention toward pages 33 and 34 of the official agenda for tonight’s deliberations.

An interesting bit of number crunching takes place on these pages, as the city audit pages outline an intriguing explanation of fiscal accounting for CityWest. In among all the numbers and financial mumble jumble that is part and parcel of thses statements is one line that will be raising the radar of those that are interested in the financials at the city owned phone, cable and internet provider.

Right after the financial status of our Solid Waste capital fund (page 32) comes Statement P of page 33, the statement of Financial Position for the Telephone operating fund, Page thirty four features Statement Q, which highlights a Loan of $23,156,563 and then Underneath the neat little columns of numerical wonder of Liabilities and Equity, in the middle of the page is a simple item simply listed as Loan forgiveness at a total of $20,000,000.

We’re sure it’s some form of accounting practice common at this time of the year, but for the casual reader of City council agendas and financial statistics, forgiveness probably comes across as meaning aw shucks, forget about that ole debt…

It might be helfpful for council to walk the taxpayers through this one a little, just so we all have a better understanding of the financial happenings of our civic owned communications outlet.

If nothing else, it couldn’t help but to explain what the term forgiveness means, outline what it is for and what it’s all about.
We imagine a few folks might have oh lets say a million, or make that about twenty million questions to ask on that item…

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