Bringing Broadband to
What is broadband? High-speed fiber optic cable (also called fiber) 25 Mbps 1 -3 Mbps = megabits per second
Impact on house saleability 20% Less Shutesbury, MA Franklin County Population: ~1800 Number of households: ~911 Total Land Area: 27. 2 sq. miles Average house price: $243, 000
Impact on house saleability $200, 000 - $40, 000 - $80, 000
What’s wrong with DSL? And satellite? 1 -3 Mbps
Is a municipal cooperative run by volunteers appointed by the member towns (It is not some big corporation whose only goal is to make money for shareholders ) Has worked diligently since its formation in 2011 to bring affordable, high-quality broadband to everyone in our towns and our region to benefit citizen stakeholders Shutesbury is a member town and holds a seat on the board of directors and on the executive committee Is now working to leverage $40 million in state funding to finally make this fiber optic network to homes and businesses a reality
Mass. Broadband Institute (MBI) The Massachusetts Broadband Institute was formed in 2008 by the Patrick administration with the mission to “connect the unconnected” Built the “middle mile” to CAI’s (Community Anchor Institutions): Schools, Town Halls, Libraries, Fire Stations, Police Stations, etc. Is now partnering with Wired. West to build a regional fiber network to connect the “last mile”
Costs Total Cost to Build Total Costs $0 MBI contribution $0 $0 Net Cost $122, 992 Impact on Tax Rate 0. 58 Allocation $0 Million Debt Service at Year 6 Prof Serv (Engineering) Based on 4%; 15 yrs.
Financial models show that with a 40% take rate, Wired. West will be able to reimburse towns for their share of debt. -$$ +$$
Tax Impact House Value $150, 000 $243, 000 $300, 000 $400, 000 Tax Impact/mo. $0 $0 $0
Tax Impact vs. Savings House Value $243, 000 Tax Impact/mo. $0 Average current DSL expenses Average current satellite expenses Phone $55 DSL $35 Internet Phone Satellite Internet (1 -3 Mbps) $55 $80 (1 -3 Mbps) Average potential future expenses Phone $25 High-speed $49 Fiber Optic Internet (25 Mbps) Television $90 Max. Added Real Estate Tax TOTAL $180 TOTAL $225 *PLEASE NOTE TV PRICES NOT YET FINALIZED $85 $ TOTAL $0 Household would SAVE SATELLITE $0 per year DSL $0 per year
Only borrow as needed Total Cost to Build MBI Contribution Net Cost to Paid by grant money and short term loans $0 -$0 $0 Year 1 (2015) Design and make ready work Year 2 (2016) Construction Revenue from Year 3 (2017) Network live subscription fees $$$ Year 4 (2018) Complete Year 5 (2019) Complete Year 6 (2020) Long Term Bond Starts
Year 6 Tax Impact Net Cost to Shutesbury House Value $150, 000 $243, 000 $300, 000 $400, 000 $0 Million Tax Impact/mo. 0 $0 $0 $0
Why a cooperative? It’s less expensive. Regional solution offers economy of scale and shared resources and personnel We don’t have the skills, talent, experience or time to go it alone. We still own part of the network and maintain partial control.
Warrant Article 1 To see if the Town will vote to appropriate a sum of money not to exceed $1, 693, 200. 00 for the Town’s share of the costs of the construction, installation and start-up of a regional high-speed broadband network, including the payment of all costs incidental or related thereto, such project to be carried out by the Town’s Municipal Light Plant acting as a member of a cooperative of such Plants formed under Chapter 164, Section 47 C of the General Laws; to determine whether this appropriation shall be raised by borrowing contingent on debt excluded override or otherwise; or to take any other action relative thereto.
How to support the project 1. SIGN UP by sending in your deposit. Minimum 40% of town’s premises must pre subscribe for Wired. West services and make a refundable $49 deposit (to be applied to first month of service) 2. VOTE AT TOWN MEETING A 2/3 pass vote at town meeting is needed to authorizing borrowing to fund our town’s costs.
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