Mayor John Laesch has previously said that OnLight was nearly $1 million in debt after failed attempts to bring Internet service to residents’ homes and “unregulated debit card expenses for marketing purposes” that took place before he took office. The city-owned fiber network managed by OnLight stretches for over 60 miles and provides Internet access to city government facilities as well as other institutions, nonprofits and businesses in Aurora.
The Aurora City Council on Tuesday approved a measure giving OnLight Aurora $80,000, which will either be a loan or a grant depending on the results of some upcoming strategic planning.
The money is expected to help the organization catch up on outstanding bills and give it a small amount of operating cash for the near-term, according to Aurora Director of Fiscal Integrity and Operations Management Brian Caputo.
In September, Laesch said that OnLight Aurora was losing $27,000 each month, a large part of which was because of debt payments. The organization got into that financial state, he said at the time, in part because of three failed attempts to bring Internet service through city fiber to residents’ homes, including one that ended up costing over $110,000 in legal fees.
There was also roughly $337,000 in “unregulated debit card expenses for marketing purposes” since 2018, which included cash withdraws, sponsorships, airfare, lodging, limos or car services, restaurants and bars, “adult entertainment clubs” and political contributions, among others, according to Laesch’s presentation to the Aurora City Council last year.
Those formerly in charge of OnLight have disputed claims made by Laesch about what the organization spent money on, and also said he was overreaching in his power as mayor in order to target those associated with former Mayor Richard Irvin’s administration.
OnLight is no longer running a large monthly operational deficit due to efforts by the organization’s volunteer director, Austin FitzCorbett, Laesch recently told The Beacon-News. FitzCorbett separately said that the organization is still losing around $5,000 per month, and that expenses can’t be cut much more considering around 70% of the money OnLight spends each month goes towards loan repayments.
The $80,000 recently approved by the Aurora City Council won’t pay off all of OnLight’s outstanding bills, he said, but the city’s financial support will help to “keep the lights on.”
His top priority is to pay overdue bills from the companies that provide OnLight with critical technical services, as without these services the network would not function for some or all customers, according to FitzCorbett.
He said that his other priorities include staying current on loan payments to the bank, maintaining active litigation defense for existing cases and preserving other important services that are crucial since OnLight does not actually have any paid staff.
For example, the organization is currently more than 200 days overdue on some invoices from Scientel, the company that provides OnLight with 24/7 network operations, monitoring, help desk and corrective maintenance services, FitzCorbett said.
“They’ve been very patient and helpful despite the circumstances,” he said in an email last week.
The Aurora City Council voted 9–2 to approve the $80,000 payment. Voting against were Ald. Jonathan Nunez, 4th Ward, and Ald. Shweta Baid, 10th Ward. Ald. Keith Larson, at-large, and Mayor John Laesch both left the council chamber during discussion and did not vote on the item as they are both on OnLight’s board.
Ald. Mike Saville, 6th Ward, said it was a very important issue to get OnLight back on track so that it can fulfill its mission of operating the city’s fiber network for the benefit of those who need it. But like other aldermen, he said he was concerned that the organization may soon be back asking for more money.
This may not be the last time the Aurora City Council is asked to approve funding for OnLight, Caputo said at a past meeting, and Laesch told The Beacon-News that it will take more than this $80,000 to stabilize the organization.
Ald. Patty Smith, 8th Ward, said she was initially hesitant to support this initiative because it was presented as a “black hole.” But, as she learned more, she realized there could be a “good outcome” if the situation can be brought under control.
“I’m hoping before you have to come back again we have some better news,” Smith said. “I will be supporting this, with hesitation, in hopes that we can make this into a positive, functioning business that will benefit our city.”
Another issue discussed at Tuesday’s meeting and past meetings was that OnLight’s Board of Directors has few members beyond those reserved for city officials. The organization is currently looking for new board members with backgrounds in finance or accounting; telecommunications, networking or infrastructure; law, governance or public administration; economic development or community engagement and nonprofit leadership or board service, according to the organization’s website.
More information about OnLight, including an application to join the Board of Directors, can be found at: www.onlightaurora.com/
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