Would reduce customers’ cable television bills
Cable television customers of Jefferson Telecom could see a decrease in their monthly bills if the Jefferson city council acts on a request from Jim Daubendiek, the company’s general manager.
Daubendiek spoke at the regular city council meeting Jan. 28 about the franchise fee – 5 percent of the company’s gross cable receipts – the city has collected since Jefferson Telecom became the local cable provider in 2004. The fee was initially to cover the city’s cost in managing the franchise, but Daubendiek says the city incurs no cost. The total fee paid to the city is about $32,000.
Daubendiek told the council he views the fee as an unfair tax. “We’re a local company. Our competition is satellite. We pay property tax. We pay school taxes…satellite companies don’t pay any property tax or any surcharges. So, we have more cost in doing business, and then we have to add 5 percent costs on our services that they don’t have to. Being a local company, we’re penalized by additional costs and additional fees on our service that our competition doesn’t have,” Daubendiek said. “That’s kind of backwards to me, when you’re trying to promote local companies.”
According to Daubendiek, no other county towns charge franchise fees to local cable companies.
“Customers only look at the bottom line price. When we have to charge more, one of the reasons being the franchise fee, it just puts us at a disadvantage as a local company,” he said.
Daubendiek said there had been an understanding that the franchise fee would be reduced over time, but that reduction hasn’t taken place. He asked the council to consider as part of its budget process eliminating it or reducing it over time.
In answer to a query by council member Lisa Jaskey, Daubendiek said that customer bills would decrease by whatever amount the city reduced the franchise fee. He added, “Alliant Energy has stated in the past they don’t care if you put a franchise fee on their services. That would be more fair, if the revenue is that important to you.”
The city council took no immediate action on Daubendiek’s request.
