Tag: "taxes"

Posted January 25, 2017 by lgonzalez

Local officials in Columbia County, Georgia, wanted better public safety communications, synchronized traffic signals, and better connectivity for government facilities. They decided the best strategy was a publicly owned network and their decision is creating opportunities they hadn't anticipated.

When he considers how the county expanded its fiber network to improve economic development, education, and public savings, Columbia County Broadband Utility (C3BU) Broadband Manager Lewis Foster still sounds a little surprised. After all, Columbia County planned on using the network for a limited purpose, but then they realized the diversity of the asset. "It was almost an afterthought," he says.

Poor Options Created A Positive Path

Before the idea of a publicly owned network saw the light of day in Columbia County, local leaders contacted the incumbent providers to set up a dark fiber lease. To their dismay, incumbents AT&T, Comcast, and WOW, would not lease the county dark fiber.

County officials approached incumbents in 2007 and 2008 hoping to secure a dark fiber lease. The large providers, however, said they either didn’t have any dark fiber to lease, they could offer lit services, or they would build a dark fiber network for the county to use. Incumbents demanded a model where the county would pay the construction costs but the infrastructure would be owned and operated by the incumbents – who would then charge the County for access to the network the county had paid for. Foster recalls that incumbents we’re most interested in charging premium rates for lit services. Columbia County officials wanted a better option and found a more fiscally responsible approach in simply owning the network.

recovery1.gif

As county leaders developed a plan to deploy fiber, the Obama administration and Congressional Democrats crafted the American Recovery and Reinvestment Act (ARRA). In 2009, with Columbia County's $18 million project plan well developed, they applied for stimulus funding. Their project obtained a $13.5 million stimulus grant; they used county sales tax funds to pay the $4.5 million local match. When the recession hit in 2008, says Foster, the cost to complete other budgeted projects decreased, leaving the county with unspent sales tax funds that they applied to the C3BU project. He... Read more

Posted June 22, 2016 by lgonzalez

Rockport was the first community in Maine to build a fiber-optic network to serve businesses, but their pioneering initiative will not extend to Fiber-to-the-Home (FTTH). At their annual town meeting on June 15th, the local Opera House was packed as citizens showed up to speak on funding an FTTH engineering and network design study. After an extended debate, attendees voted on the measure and defeated the town warrant to spend $300,000 on the project.

According to the Penobscot Bay Pilot, passions flared as a number of people stood up to explain their vote. Several people in support of the project had previous experience with life after fiber:

Deborah Hall, on the other hand, said she led an effort in another state to take fiber optics to 500 homes. That effort resulted in the fact that the “average resident is now saving 100 dollars every month in getting rid of Comcast.”

She recounted how the fiber optic system already in place in Rockport was a draw for her family to return to live in the town. They improved their Internet on Russell Avenue by personally spending the money to extend the fiber to their home, and consequently “reduced our collective Internet and television bills by $155 a month. That’s over 50 percent.”

Rockport’s youth described their dilemma, living in a place where connectivity was less than adequate:

Thomas R. Murphy said he also grew up in town but said: “I am leaving this town to seek a technology career, and am moving to Austin. I have to do this because we do not have technology in this town.”

He warned that sticking with the status quo, residents were paying a company “to make profits and take profits to shareholders in other places.”

“We can keep our resources here and improve lives of everyone. This is an investment we need to make for our future. Costs can be spread thoughtfully by the town, and we can pay forward to the future of the town.”

People at the meeting who did not support the project did not like the idea of paying an estimated $150 more per year in property taxes, even though it would significantly lower monthly Internet... Read more

Posted April 26, 2016 by christopher

When Valparaiso, Indiana looked into solutions for a business that needed better Internet connectivity than incumbent providers were willing to reasonably provide, it quickly found that many businesses were lacking the access they needed. The market was broken; this wasn't an isolated incident.

Correction: Lisa misspeaks in the intro, saying Valparaiso is northeast of Chicago. It is southeast.

Valparaiso General Counsel & Economic Development Director Patrick Lyp joins us to discuss what Valparaiso is doing to ensure its businesses have the access they need in episode 199 of the Community Broadband Bits podcast.

We discuss the need from local businesses and the dark fiber approach Valparaiso has started to encourage better choices in the ISP market. We also discuss the funding mechanism, which is tax-increment financing - a tool increasingly common in building dark fiber networks in Indiana.

Read the transcript from this show here.

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

This show is 25 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Kathleen Martin for the music, licensed using Creative Commons. The song is "Player vs. Player."

Posted July 20, 2015 by lgonzalez

Momentum is growing in WiredWest territory and each town that votes takes on a fresh enthusiasm. New Salem is one of the latest communities to overwhelmingly support joining the municipal broadband cooperative. The Recorder reported that all but one of the 189 registered New Salem voters chose to authorize borrowing $1.5 million to move forward with the initiative. There are now 22 towns that have joined.

According to Moderator Calvin Layton, a typical town meeting draws 60 to 70 voters, far less than this one did. Apparently, investing in better connectivity is a hot button issue in places like New Salem, where Internet access is slow, scant, and expensive.

Poor connectivity has impacted local commerce and even driven some residents with home-based businesses away from New Salem. For Travis Miller, a role playing game designer, and his wife Samantha Scott, an IT professional, the town’s slow Internet speeds were holding them back so they moved away. In a letter to the New Salem Broadband Committee, Miller wrote:

A lack of broadband Internet service was one of the elements in our decision to move. A substantial online presence has become a basic requirement for successful table top game designers. Many of the platforms used to interact with fans and clients require broadband service. Our lack limits my income and makes further penetration into the market difficult if not impossible.

Adam Frost — owner of an online toy store, The Wooden Wagon — also found New Salem’s slow Internet speeds to be a limiting factor for his business. He said:

Though The Wooden Wagon is a specialty business, our needs are not unique: pretty much any business owner or person hoping to telecommute has the same requirements. Businesses outside the region with whom we work expect us to be at the same level technologically as they: they will not make concessions just because our Internet service is outdated. We must keep up, or be left behind.

Communities in western Massachusetts are each taking up authorization... Read more

Posted April 9, 2015 by lgonzalez

On April 7th, voters in Glberts, Illinois, chose not to raise taxes to deploy a municipal fiber network, reports the Daily Herald. According to the article, 81 percent of ballots cast voted against the proposal. Voter turnout was low, with only 682 ballots cast out of 4,002 registered voters in town.

As we reported last month, local developer Troy Mertz plans to deploy fiber to each structure in a new housing development, The Conservancy. His fiber company will also install fiber to nearby municipal and public safety buildings and the Gilberts Elementary School. The plan was to issue General Obligation (GO) bonds to finance a publicly owned network throughout the rest of the community. The proposal would have raised taxes approximately 1.8 percent or $150 per year on properties with a market value of $250,000.

For the developer the plan will remain the same:

Mertz still plans to go ahead and connect The Conservancy's planned fiber optic network to municipal and public safety buildings plus Gilberts Elementary School, saying it was built into his development plans.

"The goal of village was always to getting fiber to our industrial areas," said Gilberts Village President Rick Zirk. "As a community, we asked the rest of the village, 'Do you want the same service and the same options that the new part of town and the industrial park?' And it seems that they don't want to pay for it."

There is a definite lesson here for any other communities considering a similar plan - educate the voters and make sure they are excited about it! From what we can tell, there was little effort to make people aware of the plan and the turnout for the vote suggests that no one was particularly excited to make it happen.

Posted March 24, 2015 by lgonzalez

The Village of Gilberts, Illinois, will ask voters in April to authorize up to $5 million in General Obligation bonds to deploy a FTTH network reports the Daily Herald. GO bonds are rarely used for network deployment but often used for public works projects and other publicly owned assets. Due to the funding mechanism in Gilberts, the network would be publicly owned.

"It's something that is not readily available in other communities," Village Administrator Ray Keller said. "It would set us apart and put us on a path to better meet the needs of our residents and businesses as their demands and needs for technology grows."

The community, home to 6,800 people, has experienced rapid population growth since 2000. At that time only 1,200 people lived in this northeast Kane County village.

According to the article and January Board of Trustee minutes [PDF online], the bond issue would increase property taxes 1.8 percent on most tax bills. Properties with a market value of $250,000, which is most common in Gilberts, would pay an additional $150 per year or $12.50 per month to fund the infrastructure deployment. There are approximately 2,400 taxable properties in Gilbert today but as more properties are built, each property owner's share would decrease. 

This is the second time the village has planned for a fiber network to improve connectivity throughout the community. In 2013, Gilberts entered into an agreement with i3, a British company that eventually folded, to deploy fiber using sewers as conduit. In that plan, i3 would have owned the fiber network.

Developer Troy Mertz is spearheading the project. His company is investing in a new housing development that will eventually include an additional 985 new homes. As part of that development and independent of the municipal fiber project, Mertz is installing fiber to each structure at his own expense. His company, iFiber Networks will also run fiber to nearby municipal and public safety buildings and the Gilberts Elementary School. According to the Daily Herald, iFiber is not charging the city for bringing fiber to its facilities or the school.

Mertz... Read more

Posted February 21, 2015 by rebecca

Minnesota Public Radio’s Daily Circuit (MPR) interviewed Chris about President Obama’s recent endorsment to end restrictions on states that limit local broadband authority. Chris and Danna Mackenzie, executive director of the Minnesota Office of Broadband Development, answered questions about what Obama’s announcement means for faster, cheaper, more reliable Internet for consumers. 

Chris explained that it’s great to see federal government “getting it right” and championing the rights of local governments. He also discredits the argument about public money for Internet networks, and addresses why municipal approaches offer some of the wisest and most efficient use of taxpayer dollars.

You can listen to a 3-minute clip in the audio player below, or click the link to hear the entire interview: http://www.mprnews.org/story/2014/11/13/daily-circuit-net-neutrality

 

Posted December 15, 2014 by rebecca

This week in Community Broadband networks... partnerships, cooperatives, and going-it-alone. For a background in muni networks, check out this recent article from FiscalNote. The article highlights Kansas and Utah's fight for improving beyond the minimum speeds. 

Speaking of minimum, the FCC announced its new "rock bottom" for regulated broadband speeds. Ars Technica's Jon Brodkin reports that despite AT&T, Verizon, and the National Cable and Telecom Association's protests, ISPs that use government subsidies to build rural broadband networks must provide speeds of at least 10 Mbps for downloads.

Rural Americans should not be left behind those who live in big cities, the FCC announcement today said. "According to recent data, 99 percent of Americans living in urban areas have access to fixed broadband speeds of 10/1, which can accommodate more modern applications and uses. Moreover, the vast majority of urban households are able to subscribe to even faster service," the FCC said.

The FCC plans to offer nearly $1.8 billion a year to carriers willing to expand service to 5 million rural Americans. 

This is a step in the right direction, but we are alarmed to see a download:upload ratio of 10:1. People in rural areas need to upload as well as download - our comments to the FCC strongly recommended raising the upstream threshold as well and we are very disappointed to see that remain a pathetic 1 Mbps.

And, from TechDirt's own "who can you trust if you can't trust the phone company department," Karl Bode found that a study by the AT&T-funded Progressive Policy Institute concluded that if Title II regulations were passed, the nation would be "awash in $15 billion in various new Federal and State taxes and fees. Bode writes that the study cherry-picked and conflated data:

The reality the broadband industry doesn't want to acknowledge is that very little changes for it under Title II if carriers aren't engaged in bad behavior. The broadband industry is... Read more

Posted December 12, 2014 by tanderson

Award-winning supercomputing apps, medical research, economic development, and quantum computing advances. What do they all have in common? They all depend on the DubLINK network running underneath Dublin, Ohio, a suburb on the Northwest edge of Columbus. The city of 43,000 people has 125 miles of fiber optics in the ground, both within its own boundaries and in the form of fiber purchased by the city within metro and regional networks. 

DubLINK began in 1999 as a public private partnership with the Fishel company to build an institutional network. In the wake of the 1996 Telecommunications Act, Dublin worried that a recent massive investment of $70 million in streetscaping would be undone as competing providers dug up newly paved streets to install fiber optics. To avoid this, the City signed a franchise agreement with Fishel to install a multi-conduit system, with the city receiving some conduit for its own use.  

Using 1.25” conduits installed in the city’s existing sewer system, the network runs for 25 miles underneath Dublin’s business district and connects six city buildings, who use their own lit fiber for data and voice services, eliminating expense leased line fees. This has allowed the city to save approximately $400,000 per year for the last 12 years in connectivity and information technology expenses.

In 2004, Dublin spent $3.5 million to purchase 96 strands running 100 additional miles through Columbus FiberNet, bringing the total length of the DubLink network to its current 125 miles. FiberNet is a duct system that runs throughout a significant portion of central Ohio, including Columbus and its surrounding suburbs.

The following year, the City of Dublin struck a deal with the Ohio Academic Resources Network (OARnet). OARnet is a 1,600 mile statewide fiber backbone connecting K-12 schools, colleges, universities, federal research labs, and other institutions. A $500,000 grant from the Ohio Board of Regents allowed DubLINK to make its connection with OARnet, and the city gave OARnet an indefeasible right to use 4 of its 96 fiber strands throughout its entire 125 mile network. They called their partnership CORN, for the Central Ohio Research Network. Earlier this year, the Ohio State... Read more

Posted October 16, 2014 by tanderson

On September 29th, California Governor Jerry Brown signed into law a bill that may make building community networks in his state just a bit easier. The memorably-named “Assembly Bill No. 2292” allows broadband projects to be included among the types of public works that can be financed using Infrastructure Financing Districts (IFDs).

IFDs are entities formed by regional coalitions of city, county, or other governmental units. They are designed to provide upfront funding for infrastructure projects that have broad regional benefits (highways, water systems, etc.), and are paid for by earmarking the increased property or other tax revenue the projects are expected to generate over a specified future period (usually decades). 

The idea behind IFDs - capturing future value to provide upfront funding to the projects that will create that value - is much like Tax Increment Financing (TIF) districts in other states. We have seen communities in other states turn to TIFs for broadband networks build outs, perhaps most notably throughout Indiana

The text of the bill is all of three lines long, and simply amends the existing authorizing law for IFDs to explicitly allow infrastructure financing districts to be used for “public capital facilities or projects that include broadband.” While the old wording of the statute did not explicitly reject using IFDs for broadband projects, it did not explicitly allow it either.

Removing the uncertainty around the issue should help encourage local governments to consider network investments, especially since one of the major unpredictable costs is incumbent lawsuits. This change will slightly reduce the opportunity for incumbents to slow a municipal network with a lawsuit.

The bill was written and sponsored by Representative Rob Bonta, who represents parts of both Oakland and San Leandro in the Bay Area. It is no coincidence that San Leandro is a city seeing the benefits of robust fiber optic infrastructure, and San Leandro mayor reportedly pushed... Read more

Pages

Subscribe to taxes