A lawsuit filed by two former Republican city councilors was greeted this week with a sharp rebuke from the mayor's office.
The lawsuit (available below) seeks:
• Repayment of the $17 million to the taxpayers;
• Putting a hold on the use of Burlington Telecom's assets to protect any taxpayer investment;
• A full accounting of money provided to BT from the city's cash management system, including the timing and amount of all payments from the city's cash pool to BT; how BT used the money; the amount BT owes to the city, including interest; and, a determination if BT is able to promptly repay any owed amounts from its assets or operating revenues; and,
• An injunction to keep BT from taking any further actions that violate the CPG or city charter.
The suit also holds Chief Administrative Office Jonathan Leopold personally liable for any unpaid money to the so-called cash pool. Burlington Telecom currently owes $17 million to the cash pool, an amount it hopes to repay through a refinancing of its total debt of $50 million. It is also hoping to borrow up to an additional $10 million to complete the build out of its fiber network in the city.