CityWest dropped a bomb on city council tonight, telling them the expected $500,000 dividend will not be given, because the company is low on cash due to their heavy investment in securing their interest service business. As a result, the budget shortfall DOUBLED just like that, basically forcing the city to increase taxes by 2%…
Thanks CityWest…I am sure all of us PR taxpayers are greatful for all the money you have spend these past two years…in Terrace/Kitimat!
Well to be fair to Citywest, they asked around town and nobody wanted it.
Really…is that the best you can do?
It’s a reference to Citywest’s mobile strategy. It’s a quote from a Northern View article, when Citywest was asked when Prince Rupert would have mobile data & texting.
It’s also one of the reasons that taxpayers are now on the hook.
[quote=“MiG”]It’s a reference to Citywest’s mobile strategy. It’s a quote from a Northern View article, when Citywest was asked when Prince Rupert would have mobile data & texting.
It’s also one of the reasons that taxpayers are now on the hook.[/quote]
Please explain…when was that?
Can’t remember the details, will look it up for you later if necessary. I’m sure it’s linked here. About 6 months before Rogers came to town, Citywest’s CEO at the time was interviewed in The Northern View. When asked about data services and texting, his response was that they asked around town and nobody wanted it.
Edit: here you go: Citywest and mobile data services
Rob Brown, From 2007: “we’ve done some checking around with businesses in town and they don’t see a demand for [mobile data services]”
MiG, I think you finally got one of their executives’ nerves. lol
sell it, get on with the rest of the country .
Probably too late to sell it at this point. Who would want to buy it?
[quote=“MiG”]
Probably too late to sell it at this point. Who would want to buy it?[/quote]
That I agree with. Shaw must be taking a big chunk of the television market. Telus and Rogers are cleaning up in the mobile department. It’s probably better for them to play and wait and see game and let City West die a slow death. Good for them, shitty for us as taxpayers and City West “shareholders”. I hope we’re wrong but its not looking good at this point.
I can guarantee Ms Ashley will not get my vote next time, The writing has been on the wall for this coming for a long time, and tonight she says on the news that she hopes it is a one time deal,lol,if she is so clueless to have not seen this coming and cannot see that it is on a downhill slide, I do not want her or anyone else who thinks owning this albatross company is a good idea,
I am very concerned with this development and think this should be investigated further. My concern here is that no one/persons will be held accountable for this. Not the lack of dividends but the apparent BIG surprise there are none. Is this a case of negligent oversight by City Council or City West’s directors and/or officers negligent in their duties? Or both.
I’ve been beating the “lack of accountability” drum from the day Herb Pond decided to buy a cable company without consulting the public.
Then when they introduced their mobile strategy (the aforementioned “nobody wants it” strategy) nobody was held accountable. Not to mention the customers lost with the disastrous switchover to Northwestel. Who paid the price for that? The taxpayers.
Ask all you want, nobody will be held accountable.
Despite it being taxpayer money they are gambling in the marketplace, Citywest seems to be immune to criticism. The local chamber of commerce voted it business of the year. The local newspaper published an editorial supporting a government-owned business competing with private enterprise.
The list of support for Citywest is huge, and even includes people who consider themselves conservatives and BC Liberals.
Nobody wants to be the one to point out that the emperor has no clothes. Because then they would have to account for being in support of the City buying a cable company and forgiving millions of dollars in loans, all without any consultation.
Of course we can’t sell Citywest now. It would be admitting that the actions that lead to the present situation were mistakes.
Yes, the “BIG surprise” is an important issue. It raises questions about how well the councillors understand Citywest finances. This isn’t the first time that Citywest has failed to pay dividends. There were no dividends in 2010 and 2011 either (although $1 million in debt was repaid in 2011). So why the surprise this time, as if this is a one time event, which it’s not?
And what’s the story for 2012? Was a dividend paid last year? Apparently so, but we’ll probably have to wait until the City’s audited financial statements for last year are available in a few weeks before we know for sure. As has been said “Citywest seems to be immune to criticism”, but even just getting basic information is a problem. Are the council members aware that, according to their own financial statements, Citywest lost $3,945,000 in 2010? That’s not small change.
Citywest is a huge investment for the City. At the end of 2011 the company owed the City $21,732,763 (after the City forgave $20 million in debt in 2008) and the City had $6,304,000 in equity. Yet the company seems to operate within a cone of silence.
In fairness to the Citywest officials they announced in a public meeting, with the media being present, that the City should not expect a dividend this year. Is that what it takes for the council members to pay attention to the City’s largest single investment?
[quote=“BTravenn”]
Yes, the “BIG surprise” is an important issue. It raises questions about how well the councillors understand Citywest finances. This isn’t the first time that Citywest has failed to pay dividends. There were no dividends in 2010 and 2011 either (although $1 million in debt was repaid in 2011). So why the surprise this time, as if this is a one time event, which it’s not?
And what’s the story for 2012? Was a dividend paid last year? Apparently so, but we’ll probably have to wait until the City’s audited financial statements for last year are available in a few weeks before we know for sure. As has been said “Citywest seems to be immune to criticism”, but even just getting basic information is a problem. Are the council members aware that, according to their own financial statements, Citywest lost $3,945,000 in 2010? That’s not small change.
Citywest is a huge investment for the City. At the end of 2011 the company owed the City $21,732,763 (after the City forgave $20 million in debt in 2008) and the City had $6,304,000 in equity. Yet the company seems to operate within a cone of silence.
In fairness to the Citywest officials they announced in a public meeting, with the media being present, that the City should not expect a dividend this year. Is that what it takes for the council members to pay attention to the City’s largest single investment?[/quote]
Perhaps you couple go to the next meeting and ask all of these questions of them. Highlight the financial issues and gauge their reactions.
And I mean that literally…you seem to know what your talking about.
I would have gone with this one:
There’s an interesting article about Citywest on North Coast Review, which reports that Citywest wanted to clear up “some misinformation” that they believe exists in the community:
“With CityWest officials advising Council that there is “no amount of funding that comes from the City of Prince Rupert to fund CityWest”. CityWest officials explaining to council that the company “is a totally self funded organization”.” < northcoastreview.blogspot.ca/201 … prise.html >
That statement by Citywest is misleading.
Citywest’s operations are self funded, ie the City does not pay them a subsidy; it expects a return on its’ investment. But Citywest is funded by the City to the tune of $28.5 million in loans and equity, and $23.5 million by arms-length lenders (those are Dec 31, 2011 numbers, which are the most current available). If Citywest was debt free and financed entirely from re-invested profits it could say that the company was “totally self funded”. But that’s not the situation.
There really should be an independent review of Citywest finances, with a report to the council and public.
By the way, I’ve been to question periods at City hall. It’s actually a very constraining format with little time or opportunity for back and forth. Public discussion and reporting are more likely to shine a spotlight on these issues and prompt the council members to pay attention and state their thoughts, as the recent Black Press article illustrates. I particularly liked these comments:
“I am furious. I can barely speak about CityWest. To be introducing this information at this time when we had a large problem on our laps, it’s now almost doubled… If I didn’t have my nice clothes on and we weren’t in council I would have some much stronger words for CityWest,” said Councillor Joy Thorkelson.
“My head is spinning, as I am sure everyone’s is… I am looking at it, but I am not sure where to go with it. I am stunned is what I am,” said Councillor Gina Garon.
< thenorthernview.com/news/204219871.html >
I wonder what Councillor Thorkelson would have done if she wasn’t wearing her “nice clothes”? Would she have “laid the boots” to them?
Buy a cable company. Forgive $20 million in loans. That’s self-funding? I see the Citywest Minister of Propaganda is at it again.
Remember Propaganda 101 – if you repeat it over and over, it becomes truth. And the more outrageous the lie, the easier people will believe it.
Hence “Citywest is self-funded.”
Bullshit. It’s cost taxpayers of Prince Rupert a heck of a lot of money. And now it’s costing even more…
Can Prince Rupert Council give me 20 million dollars so I can be self-funded too?