COVINGTON -- The city of Covington will see a savings of approximately $70,000 per year after installing its own fiber optic lines.
The city will not be renewing its three-year contract with Charter Communications for fiber connections running to City Hall and serving various city buildings. The cost for that service, along with high-speed Internet, which will be retained, runs about $6,675 a month, according to Bobby Johnson, the city's information system manager.
"The city constructed its own private fiber connections that belong strictly to the city that's going to these facilities. It's more cost effective to do that," Johnson said.
By canceling the Charter contract, the city will save about $70,000 a year, he said. The city expects to see a quick turnaround time on payback, as the new infrastructure cost a little more than $18,000.
The city will retain Charter's fiber connections to the Covington Police Department and the 911 Center, but all other buildings will use the city's own connections.
The city is also looking at other cost-saving measures, including a new telephone system and bringing some of its software maintenance work in-house. If those measures are approved by the council, coupled with the savings on the fiber optic lines, the city could see a savings of $150,000 per year over the next five years, Johnson said.