In early December, the city of Cortez, Colorado, released a request for proposals in their search for a private sector partner to help bring last mile fiber connectivity to premises throughout the community. The city is seeking a way to bring high-quality Internet access to the entire community, but will not expand it’s municipal fiber infrastructure. They're looking for ways to overcome some of the same challenges other small communities face as they attempt to improve local connectivity to every premise.
At A Crossroads
Smith told us that the city is at a crossroads and community leaders think that a public-private partnership (P3) might be the quickest way to get the people of Cortez better services they’re looking for at the affordable rates they deserve. The city faces the challenge of funding the expansion. Approximately $1 million from the Colorado Department of Local Affairs (DOLA) funded the Cortez middle mile infrastructure and connections to community anchor institutions (CAIs), including schools, healthcare facilities, and municipal facilities. Cortez is not able to obtain more grant funding from DOLA for last mile expansion.
When we spoke with Smith in June 2018 for episode 310 of the Community Broadband Bits podcast, he described how the city was contemplating a sales tax to fund the expansion, rather than the more common revenue bond funding. Smith explains that, if Cortez decided to go that route, their decision would trigger Colorado’s Taxpayers’ Bill of Rights (TABOR) regulations. Due to the time requirements, any ballot measure on such a funding mechanism could not be voted on before 2020. Once the measure is on the ballot, the city would not be able to promote it in accordance with Colorado law. If Cortez decided to ask local voters to support funding Fiber-to-the-Home (FTTH) with a sales tax, says Smith, the city would have to wait 4 - 5 years before they could promote the service. A survey in Cortez revealed that 64 percent of respondents supported a sales tax to fund expansion of broadband infrastructure to households and more businesses, but community leaders aren't comfortable waiting so long to bring better connectivity that is so desperately needed...Read more