Posted: May 14, 2013 11:10 AM
Updated: May 20, 2013 10:44 AM
An LCG audit shows that revenues are up, and spending is dropping.
But LUS Fiber remains in debt, even though the administration says it's cash positive.
It's not bringing in enough money to "fully" pay off pay its bonds and loans, but according to the auditor and LUS Director Terry Huval, they are making payments on those loans. Huval says Fiber is cash positive by 1.5 million dollars this year.
Here's how it works: LUS Fiber, because it's a public entity does not pay taxes like private business.
Instead, it makes payments to the Lafayette Utlilties System. LUS then loans that money back to the fiber operation.
It is that loan that helped LUS to be cash positive this year.
So, what will it take for LUS Fiber, which went online three years ago, to operate on its own and be profitable?
Huval says LUS Fiber is spending less money and revenues are increasing. Once it's enough, Fiber will be able to pay back bond, loans and taxes.
He estimates Fiber to be fully profitable by 2015.
The Lafayette City Parish Council will discuss the audit at its next meeting on May 21st.
The story was taken down until further clarification from LUS. Last night, we wrote the sentence LUS is "not bringing in enough money to pay bonds, loans, and taxes". We changed that sentence to clarify LUS is "not bringing enough money to fully pay off its bonds and loans, but according to the auditor and LUS Director Terry Huval, they are making payments on those loans."