Small town's big government approach signals serious trouble to private business
"Don't worry, we're from the government and we're here to serve you."
That statement, no matter how sincere the speaker, sends chills down the backs of taxpaying citizens and businessmen everywhere. The reason, of course, is that regardless of the intent, the result is almost always additional regulation, organizational confusion, and ultimately higher taxes and fewer services.
In most cases, this big government approach is only seen in hind-sight. Like a thief in the night, the fight is usually over by the time the receiving party finds out what has happened. The reality and impact of governmental assistance only sets in after the first regulations have been imposed and your fair share of the tax bill has been levied.
One current example of creeping government approach is being acted out in the small Lafayette County town of Oxford. In order to better serve their public, the cityÕs Electric Department has taken it upon themselves to tap into a new revenue stream by proposing to overbuild the existing cable television system and compete directly with the city's own franchised TV cable provider.
The city, while charging the cable company a franchise fee of five percent of the company's gross annual revenue, then turns around quietly and accuses its own franchisee of maintaining a 'monopoly' on the city's cable TV service. Meanwhile, the city is steadily preparing to introduce legislation through the State Legislature's Public/Private Committee that will enable the city to issue general obligation bonds to finance the construction and installation of its own cable system that will compete directly with its own franchisee.
The most troubling issue is not if municipalities, such as Oxford, should have the opportunity to own multiple utilities that compete with private business or the fact that the city's electric Department estimates it will spend at least $3.5 million of taxpayer's money to duplicate a fully functioning fiber optic system that already exists and has been offered at no charge to the city. The concern should be the manner in which this municipality's utility department is striving to expand its revenue base at the expense of an existing private, family-owned business and its customers.
By developing a duplicated cable system, which will in turn depreciate the franchised system, the city will have found a new way to tax its citizenry as well as dampen market driven competition within the cable industry.
Another concern is the Electric DepartmentÕs tactics. While insinuating that the cable company operates a monopoly for multi-channel television in the area, the city's Electric Department recently proposed a dramatic increase in pole fees the cable company must pay the city.
The city utility has also ignored the cable company's requests to discuss cooperative measures that would save the taxpayers and the local cable customersÕ money. The end result of this tactic would be to drive up the existing cable company's consumers' cable bills while promising a city-owned system that would offer lower prices and more services which could be supplemented by additional taxpayer dollars.
During a recent city public meeting, the cable company brought many of these important issues to the attention of the cityÕs alderman. By unanimous vote, the alderman elected to postpone the proposed rate increase until a more in-depth study could be made by the board.
While this fight has just begun, its outcome will eventually impact many of the Delta's cable systems, cable and Internet subscribers and other businesses and taxpayers in our region. It will also be closely monitored by municipal leaders looking for new ways to get into citizenÕs pockets in order to better "serve you."
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In this first issue of 1999, we introduce several new departments in the paper. On pages 17-22 we introduce our new "Health Care" section that we feel will add greatly to the quality of the paper. As I mentioned in our last issue, the Delta health care industry does not receive the attention in the Delta that it deserves. This great industry adds much to our economy. There are many fascinating things taking place in this industry that we believe you need to know about.
Also, we are introducing our new ÒWomen in Business' spotlight. The Delta is full of successful business women and women entrepreneurs. We look forward to letting you know about these women and the successes they are achieving in the work place and operating their own businesses.
On page seven you will find our new "Delta Stock Watch" informational chart provided to us by our friends at Vector Money management in Jackson. I have had a long relationship with Vector as they provided me with financial information for my former paper in Jackson, Jackson Business Journal. Each month, Vector will provide us with stock information pertaining to companies here in the Delta that greatly affect our economy. We will be adding to the list of these companies on a monthly basis.
We hope that you will enjoy our first issue of 1999. DBJ
Scott Coopwood
Publisher