GENESEO, NY — A recent audit of Time Warner franchise payments to the Village of Geneseo has indicated that the village has been underpaid about $14,000 over the past five years.
On Monday the village board authorized Computel Consultants of Earlville to take legal action against Time Warner to retrieve the money.
The same firm had performed the audit which determined the shortage exists. Under the contract with the village, it will share half of any amount which is retrieved.
Franchise payments which public utilities make to municipalities in which they operate are generally determined as a fraction of the gross revenues the utility receives in that municipality. Time Warner puts its franchise costs on its cable TV bills as a separate line expense, which accrues to every individual customer’s bill.
The accounting issue has arisen because, in presenting its gross revenues to Geneseo when renewing its franchise, Time Warner failed to tally in its franchise receipts from individual customers during the previous franchise cycle. The courts have determined that this fee is no different from any other revenue which the cable company receives — and hence needs to be included when determining the fee paid to the municipality for the upcoming franchise cycle.
See more in our Jan. 28 print edition.
