Tag: "local utility district"

Posted November 27, 2018 by lgonzalez

As interest in publicly owned broadband network infrastructure increases, local communities seek out new ways to fund municipal networks. Revenue bonds, interdepartmental loans, and avoided costs have been the three most common methods for funding Internet network infrastructure, but local leaders are finding creative approaches to get the job done. The Creative Funding Sources For Fiber Infrastructure fact sheet presents new approaches, pros and cons, and provides examples for further study.

Download the fact sheet.

New Approach to an Ongoing Challenge

Communities that need better connectivity must consider numerous factors when fiber optic network infrastructure is on the table. In addition to the type of model that’s most appropriate, decisions include vendor selection, and the extent of the network footprint. A critical element to every community network are the choice of funding mechanisms local leaders choose to see the project from idea to implementation.

Communities such as Ammon, Idaho, and Kitsap County in Washington are using fresh ideas to fund their infrastructure development. In this fact sheet we describe the way these new mechanisms work and lay out some benefits along with some potentially negative implications. It’s important that communities take a frank look at all the possible repercussions as they move forward. 

This fact sheet will help your own creative funding ideas flow as you look for ways to finance your community’s high-quality Internet access project.

Download the fact sheet.

Posted May 22, 2018 by lgonzalez

When municipalities and other local governments are planning for publicly owned Internet infrastructure, they must coordinate many moving pieces to get the project going and to keep it on a successful track. In this interview, Christopher and Tom Coverick, Managing Director at KeyBanc Capital Markets, discuss one of the most important components of community network planning: finance.

Christopher and Tom met up at the May 2018 Broadband Communities Summit in Austin, Texas.

In addition to some of the types of bonding and other mechanisms communities use to fund their projects, Christopher and Tom discuss the politics and ancillary issues that affect local leaders’ decisions to take the step to finance for a project. Risk is a consideration and it affects the cost of financing. Tom advocates that financing should be part of the equation early in the planning process and he explains why his experience has led him to this conclusion. Christopher and Tom also talk about some creative funding techniques that local communities have used to make borrowing more palatable and suitable for their unique situations.

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

Read the transcript for this show here.

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

Thanks to Arne Huseby for the music. The song is Warm Duck Shuffle and is licensed under a Creative Commons Attribution (3.0) license. 

Posted March 2, 2018 by lgonzalez

When the folks in Kitsap County, Washington’s Lookout Lane neighborhood banded together and used a Local Utility District (LUD) to get better connectivity, they were thinking about their own homes, not about setting a precedent. A little over a year later, other groups of neighbors are following their lead.

Sick Of Slow Connections

The Lookout Lane community formed their LUD and worked with the Kitsap Public Utility District (KPUD) to expand its open access network to their neighborhood because they were stuck with slow CenturyLink DSL. Residents didn’t feel that they were getting what they were paying for at $60 per month and 1 Megabit per second (Mbps) on average download speed. Now they have options up to 1 gigabit symmetrical via the publicly owned open access network.

Forest Ridge Estates, which is adjacent to Lookout Lane, has formed an LUD and is already connected to fiber installed by KPUD, according to Angela Bennick from the Northwest Open Access Network (NoaNet). Bennick says that there are two other neighborhoods that are considering a similar approach. KPUD is a member of NoaNet, whose open access fiber infrastructure connects that of other public utility districts across the state so people, businesses, and institutions in Washington can have high-quality connectivity.

Property owners pay for the connections themselves, but can pay off the cost upfront, over a 20-year period, or a combination of the two. Connections were from $10,000 - $14,000 in Lookout Lane, but depend on a variety of factors; property owners usually consider the investment an added value to their home. In order to establish an LUD, a neighborhood needs a majority of homeowners to sign a petition to establish the LUD.

We spoke with General Manager Bob Hunter and Superintendent of Telecom Paul Avis last year about the network and the Lookout Lane LUD during episode 237 of the Community Broadband Bits podcast. They explained how the LUD process works and how folks in the KPUD service area are...

Read more
Posted November 22, 2016 by lgonzalez

Residents in the Lookout Lane neighborhood of Kitsap County, Washington, tired of shoddy DSL do they joined forces to take advantage of publicly owned fiber. By the end of 2016, this group of organized neighbors anticipates connecting to the Kitsap Public Utility District (KPUD) open access fiber network.

How Did They Do It?

According to the October newsletter from the Northwest Open Access Network (NoaNet), neighbors in the Lookout Lane area had dealt with slow DSL for some time, paying $60 per month for speeds that rarely reached 1 Megabit per second (Mbps). Some of the residents have careers in the tech industry and required high-speed connections to work from home, but the national incumbent would not invest in upgrades. Lack of high-quality Internet access also caused several home sales to fall through.

Members in the neighborhood decided to petition the KPUD to form a Local Utility District (LUD), to fund their portion of the cost of a fiber expansion to their homes. KPUD would finance the cost of deployment to the edge of the neighborhood. Residents decided the investment was worth an assessment on their property rather than contending with the outdated technology offered by the incumbent.

The Lookout Lane LUD is the first in the state of Washington established for Internet infrastructure.

Forming A LUD In Washington

NoaNet describes the steps in forming a LUD on their newsletter:

How does a LUD work? 

  • Homeowners petition the Public Utility District to form a Local Utility District

If a majority (50%+1) of the homeowners petition the LUD is formed

  • Once the LUD is formed, the PUD begins the process to construct the infrastructure

When construction is complete, the homeowners are provided a final assessment amount The assessment can be paid:

  • Upfront 
  • Over a 20-year period 
  • Or a combination of the two – A portion upfront and the rest over 20 years

The county administers the assessment and homeowners receive a tax bill for their 
assessed amount annually

KPUD, a member of NoaNet, began using the COS Service Zones survey system in August 2015 to determine where county members wanted them to expand...

Read more
Subscribe to local utility district