OLDS — An annual general meeting was held July 8 for Olds Fibre Ltd. (OFL), which operates as O-NET.
The meeting was declared over in 20 minutes.
O-NET is a municipally-controlled corporation that provides high-speed internet as well as phone and TV service. Years ago, it was the brainchild of local businesspeople and volunteers.
In 2021, the town council of the day voted to turn Olds Fibre Ltd., which oversaw O-NET, into a municipally-controlled corporation (MCC).
The AGM was held in town council chambers. However, those who wished to do so, were invited to watch the proceedings virtually.
About 10 people were in the gallery of council chambers for the meeting.
Included in that group were town staff, former town councillors and people who had sat on the board of the Olds Institute for Community and Regional Development (commonly known as OI) and related entities.
Before the creation of the MCC, OI had O-NET under its umbrella.
Right at the outset of the meeting, chair Darren Wilson announced that “this will not be an open forum for questions or debate.”
Instead, he referred those in attendance or watching virtually to submit any questions they might have to the following address: ([email protected].
Wilson said any questions received will be referred to the OFL board of directors whom, he said, “will meet and decide on the process for -- and format -- for responding to any questions that come in.”
Brent Williams, who has been the town’s chief administrative officer since the end of May, served as the representative for the Town of Olds as shareholder.
Wilson said the community has gone through “very challenging and stressful times, as well as through the pandemic.”
“I would also like to acknowledge and thank the loyal customers of O-NET," he added.
Local accountant Krystal Stoutenberg of Stoutenberg & Company outlined financial statements for OFL as of Dec. 31, 2021.
Cash at the end of the year amounted to $680,000.
Stoutenberg said OFL had an opening deficit of $10,189,000. Net income for the year was $226,000, resulting in a closing deficit of $9.9 million.
She said total income for the year was just over $4 million, gross profit $2.75 million and expenses $2.8 million.
The overall loss from operations was $92,000 plus other income of $318,000, resulting in the above net income figure.
Stoutenberg said total financing at the end of the year was $15,060,017 $450,000 of that figure will be repaid before Dec. 31, 2022.
She said five private loans were on the books, with the last one to be repaid on Oct. 15.
Town councillors sitting as board members voted to accept Stoutenberg’s report and retain the company as OFL’s accounting firm for the coming year.
Warren Smith was among those who attended the meeting in the council chambers.
He was among those who resigned from the original OFL board of directors and was a local investor.
“I was on the board from the beginning,” he said.
Smith was asked for his reaction to the meeting.
“Well, I like a short meeting,” he said with a laugh. “That’s good.”
Smith said he was “disappointed” by the announcement that any questions had to be sent to Wilson via the announced email address.
“I would have liked more clarity on revenue from outside sources, other communities that O-NET is serving, for example,” he said.
“And the transparency on legal costs. It wasn’t evident in that. It may be buried in there, but I couldn’t see it.”
Smith said he’ll talk to Wilson and others “in the passage of time” in an effort to get those and other answers.
Smith was asked if he’s optimistic about the future of O-NET.
"Well based on that report, I’m optimistic because the bottom line showed revenue, showed positive growth,” he said.
Given that, Smith was asked if he believes the Town’s effort over the past couple of years to set up the MCC was the right thing to do.
“No,” he said with a laugh. “Definitely not. If you look at the legal costs to do this, it’s approaching a million dollars, and they continue.
“You have to ask this question: has the intrinsic value O-NET gained as a result of the actions of the Town (of Olds)? Have there been some outside opportunities that have been lost?”
