Image
Fast, affordable Internet access for all.
UTOPIA Scapegoated as Area Cities Increase Taxes
By
on
Jesse Harris has posted an interesting update on the present UTOPIA situation, where a number of cities are heaping perhaps too much blame on UTOPIA for rising local taxes.
A lot of cities have been talking property tax hikes lately, and the most certain thing about all of the proposals is that elected officials are going to look for someone or something to blame. In UTOPIA member cities, blaming the fiber network has become the easy go-to solution, especially since so many mayors and city council members weren’t involved in the original decision. The problem, however, is that this blame is completely paving over a deeper problem of city tax structure that’s boring, doesn’t fit the anti-UTOPIA narrative, and is a much larger problem for city budgets. Let’s take the examples of West Valley City, Orem, and Taylorsville, the latter of which is not a UTOPIA member city. In all three cases, they’ve called for large (as a percentage) property tax increases to make up for lagging sales tax revenues. So if UTOPIA is the cause of property tax increases, why would a non-member city need to more-or-less do the same thing?The discussion in the comments offer some additional news about UTOPIA's efforts to expand its subscriber-base by giving residents the option of "leasing" a last mile connection if they cannot afford to pay for it outright in areas where UTOPIA is presently not able to extend its network all the way to the home. Communities seeking alternative ways of financing networks that simply issuing lots of debt upfront should examine the different approaches UTOPIA has pioneered.
Related Stories
Documentary: The Municipal Broadband Wave and Monopoly Response
In January, we released our new census of municipal networks in the United States for 2024, and the significant growth that we've seen over the last two years as more and more cities commit to building Internet infrastructure to add new tools for their local government, incentivize new economic development, and improve connectivity for households. The trend has not gone unnoticed by the monopoly players and their allies, and a new short documentary by Light Reading does a great job of outlining the stakes for local governments, residents stuck on poor connections, and the incumbents as the wave of municipal networks grows.
UTOPIA Fiber Completes $23.5 Million Network Build in Syracuse, Utah
UTOPIA Fiber has completed its fourth major broadband deployment of 2023, with the finished construction of a $23.5 million citywide fiber-to-the-home (FTTH) build in Syracuse, Utah. The new fiber network passes 12,324 residential addresses, and has already reached a nearly 16% subscriber take rate in the city.
Municipal Broadband Opposition Campaign in Bountiful, Utah Fails
Bountiful, Utah officials and community broadband advocates are breathing a sigh of relief as the Utah Taxpayers Association’s “Gather Utah” petition to stop the city from building an open-access network in partnership with UTOPIA Fiber fell short. This past Friday was the deadline for “Gather Utah” to collect enough signatures for a petition that would have forced a citywide vote on the $43 million in revenue bonds authorized in May by city councilors to fund network construction.
Garden Spot of Utah Moves to Build Bountiful Fiber Network in Face of Dark Money Campaign
Bountiful, Utah officials have settled on a plan to bring Bountiful Fiber and affordable connectivity to its residents and businesses. By unanimous vote of the city council, the issuance of $48 million in bonds was recently authorized to fund construction of what will be a city-owned open access fiber network. A dark money campaign spearheaded by the Utah Taxpayers Association (UTA), however, is threatening to derail the project.
Bipartisan Push To Make Broadband Grants Tax Exempt Moves Forward
A bipartisan coalition of lawmakers continues to make slow but steady progress on legislation that would make federal broadband grants tax exempt, providing significant relief for big and small companies alike trying to bridge America’s stubborn digital divide. Telecom industry watchers have been warning for years that upwards of 21 percent of new grants would need to be paid back to the United States government in the form of taxation, complicating project financing and scale.
Nearly $1 Billion in Rescue Plan Funds Heads to Six States
The U.S. Treasury Department announced another six states have been approved to receive nearly $1 billion in Capital Projects Funds from the American Rescue Plan to bring new broadband infrastructure to more than 180,000 homes and businesses.