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City proposes third‑party audit of Spectrum franchise fees amid $500,000 revenue drop
Summary
Finance Commissioner Mike Kennezera recommended hiring Troy Banks to audit the city's Spectrum cable-franchise fees after franchise revenue fell from about $1.7 million to roughly $1.2 million annual in recent years; the contract is contingency-based (no fee if no recoveries) and councilors asked for outreach to Spectrum and competitive options.
The Syracuse Department of Finance proposed hiring external auditors to review the city’s cable franchise-fee payments from Spectrum after the annual franchise revenue declined in recent years.
Commissioner of Finance Mike Kennezera told the Common Council Spectrum’s cable-franchise payments historically generated about $1.7 million annually but have averaged about $1.2 million in the last two to three years. To investigate whether additional franchise receipts are owed to the city, he proposed engaging Troy Banks to perform a franchise audit. Kennezera said the contract would be no cost to the city if no recoveries are found; if recoveries are identified, Troy Banks’ fee would be contingency-based: 40 percent of recoveries up to $250,000 and 30 percent on recoveries exceeding $250,000.
Councilors questioned why the city had not first engaged Spectrum to seek explanatory data about the revenue decline and whether the city had solicited competitive bids for audit services. Kennezera said Troy Banks approached the city and that the department had not reached out to Spectrum yet; he said the timing was partly fiscal — the city would like to determine any recoveries before the end of the fiscal year.
One councilor raised a conflict concern given the city's broadband interests and asked whether employing an auditor focusing on cable franchise fees could be seen as inconsistent with city broadband ambitions; Kennezera and Deputy Commissioner Voss said the audit pertains specifically to cable-franchise fee compliance and that Troy Banks has a track record with other New York municipalities.
Councilors asked administration to contact Spectrum for an explanation of the revenue trend and asked whether other audit firms should be considered; Kennezera said the city had not conducted a formal competitive solicitation and that he could explore alternatives if the council preferred.
No vote was recorded in the transcript.
