Bringing Highspeed Broadband to Boulder Junction - November 14, 2019 - Town of ...
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Agenda • Why We Are Here • Defining Highspeed Broadband • DSL vs. Fiber Optic Highspeed Broadband • Highspeed Broadband’s Benefits • Boulder Junction’s Opportunity – The Options • Highspeed Broadband Pros/Cons • The Net/Net – How Much It Will Cost You • Questions and Answers • The Voting Process • Over to the Town Chairman
2017 Economic Development Survey • 169 Responses • A Wealth of Information • Business Develop Another Key Response
• Data transfer from and to the World Wide Web (www) – The Internet of Things • Email, photos, web browsing, video, TV, movies, documents, gaming, Tele- What is Education, health screening and monitoring (Tele-Health), thermostat monitoring, e-commerce, security systems and cameras, using the Cloud, telephone, video conferencing, secure tunneling, banking transactions, etc., etc. Highspeed • Almost anything you can imagine is possible on the Internet today Broadband? • The way today’s business happens • It all takes bandwidth (amount and speed of data your ”pipe” will handle) • Electrical service comparison • You can have 30AMP service to your home or 400AMP • Same with Broadband – 3Mb or 1Gb
Businesses have symmetrical requirements - (ex. 100/100Mbs) and speeds over 1Gbs. Most of Boulder Junction has 10Mbs service or less and Upload The more connected devices, the more speed you need. *Source – broadbandnow.com
DSL – Direct Subscriber Line • Dial-Ups Big Brother • Uses mainly fiber infrastructure, but 50+ year old copper telephone lines to the premise • Speeds up to 100Mb within a few hundred feet of a Node (done with Connect America Fund {CAF} federal funding) • Speeds fall dramatically with distance away from Node • Many CenturyLink (CL) Nodes are now full • Nodes require power and cost $40,000 each • Usually cannot have symmetrical service • Legacy technology and solution
Fiber Optic Internet (Fiber to the Premise) • Best technology for today and foreseeable future • Speeds up to 100Gb commercially, but 255Tb in recent experiments • Typical customer speeds are 25Mb to 1Gb • Symmetrical service is typical • Boulder Junction has 62 miles of CL fiber already in the ground (previous federal funding = some of your tax $$)
Reasons to Invest in High Speed Broadband Improving the quality of life for residents, property owners, and visitors • Keep seasonal residents and visitors here longer (Telecommuting) • Encourage more visitors to spend time in Boulder Junction • Market Boulder to new high tech, e-commerce, and consulting businesses and as a Best Place to Live Economic • Recruit new and more employees for existing and new businesses • Strengthen volunteerism for community events • Increase property values from 5 to 11%* • Add to tax roll by developing new properties and businesses • Fill empty Downtown buildings • Enhance and protect school enrollment Educational • Offer Tel-Education for our kids • Promote distance learning for adults • Keep us in our homes longer through Tele-Health and Tele-Medicine Engagement • Video-conference with our families, friends, and anyone else • Access any information and conduct research • Watch TV – cast away satellite dish and and large monthly bills – No more cable TV Entertainment • Stream movies (Netflix, Disney, Amazon, etc.) and other content • Participate in global interactive gaming *Sources - https://api.aae.wisc.edu/pubs/pdf/sps/stpap591.pdf, https://pdfs.semanticscholar.org/a680/be92844f5ada41662cb3893d8021fe4318c9.pdf
For small towns, having high-speed Internet can be a critical factor in growth and prosperity. Studies have shown that increased Internet access has a positive effect on employment and economic growth in rural townships. [1]* SMALL TOWN, BIG PICTURE As cities get more expensive and telecommuting increasingly becomes the norm (21–25% of the US population telecommutes regularly according to a recent study) [3], living the quiet life in a small town has never been more practical. Small towns like these with competitive, functional high-speed broadband internet hint at a future where small town America can once again become a viable force in the national economy.* *Source - https://broadbandnow.com/report/10-small-towns-with-blazing-fast-internet/
Need More Evidence Highspeed Broadband Helps Rural Communities? Sources - http://www.cura.umn.edu/publications/catalog/cap-188, http://www.ykc.com/15-ways-broadband-improves-rural-communities/, https://www.inc.com/dustin-mckissen/small-town-entrepreneurs-need-big-city- broadband.html, https://extension.purdue.edu/article/30678, https://www.aarp.org/livable-communities/tool-kits-resources/info-2019/rural-livability-focus-group.html
Working since November 2018 to bring Highspeed Broadband to Boulder Junction Conducted 8 Public Information Meetings Highspeed Received and further refined estimated costs and conceptual designs from CenturyLink Broadband Investigated other options Project Status Sharing the updated status with you tonight Ready for Boulder Junction to make a decision
Boulder Junction’s Opportunity
Wisconsin Public Service Commission Grants • $24MM in 2020 and $24MM in 2021 • 2020 funding is more than all previous 6 years combined • During the 2018 funding period they had $22MM in submissions • Likely will provide a couple of $1MM+ grants in 2020 • Now is Boulder Junction’s opportunity • Submission Deadline – December 19, 2019 at 4PM
$200K CL % Home Tax Option # Description LU's Project Cost Contribution Grant Funding Cost For BJ Covered Tax/$1K Impact CL – Fiber to the Premise 2020 Village, Boulder Junction 1– Northeast, South Trout, $0.03/20 2020 Mann & Access Points Yrs $6/20 Yrs Plan Phase 1 of 4 phases or or (Partial (2020 to 2023) requiring $0.10/15 $20/15 Town) additional future funding 919 $3,122,600 $715,000 $1,203,800 $1,203,800 68% Yrs Yrs 2– $0.25/20 $50/20 2020/2021 CL – Fiber to the Premise Yrs Yrs Plan 2020 and 2021 $2,500,000 or or (Entire Entire Township – Over 2 $1,250,000 x $0.61/15 $122/15 Town) Years 1353 $7,500,000 $1,200,000 2 Yrs. $3,800,000 100% Yrs Yrs 3 Do Nothing $0 $0 $0 $0 $0 $0 $0 $0 Note – Project(s) have not yet been engineered so costs are not final and binding.
Lower Debt Service Explanation "It is just because we are now starting at a higher outstanding existing debt service mill rate to start with in 2020 and the new broadband debt doesn’t really start making larger payments until 2023 (once the new snow plow loan is paid off) so it works out very nicely.” Justin A. Fischer Senior Vice President Public Finance R. W. Baird & Co.
Option 1 – 2020 Plan (Partial Town) Fiber to the Premise Coverage New and Existing Fiber Access Points Unserved Area Note - Project Not Yet Engineered and Areas Not Final and Complete
2020 (Phase 1) 2022 (Phase 3) Village, Boulder Junction Northeast, All other Boulder Junction Areas South Trout, Mann & Access Points Catch-Up North Trout, Gresham, Wild Rice, Clean-up Island, Clear/Big Lakes Punch-List 2021 (Phase 2) 2023 (Phase 4) Note – Additional federal funds may be available in 2021 Proposed Highspeed Broadband Multi-Year Expansion Plan with Option 1 - 2020 Plan (Partial Town)
Unserved Area Option 2 - 2020/2021 Plan (Entire Town) – 2020 Phase Fiber to the Premise Coverage Boulder’s West Business Area Unserved Area and Fiber Redundancy Note - Project Not Yet Engineered and Areas Not Final and Complete
Option 2 - 2020/2021 Plan (Entire Town) – 2021 Phase Fiber to the Premise Coverage Note - Project Not Yet Engineered and Areas Not Final and Complete
Highspeed Broadband Project – Pro et Contra Option Pro Con 1 - 2020 Plan (Partial Town) - CL- • Lower 2020 cost • Need to go through exercise again for other areas • Highest return on investment in future years Fiber to the Premise • 68% of Town (most students) for 42% of entire • Inflationary cost increases Village, Boulder Junction project cost • Additional long-term grant uncertainty Northeast, South Trout, Mann & • Cover unserved area (Frontier) • Requires Town commitment to complete entire Access Points • CAF3 funding potential in 2021 Town in future years • Time to seek other funding sources and options Phase 1 of 4 phases (2020 to 2023) • Immediate marketability of primary business area • Maximizes PSC funding potential 2 – 2020/2021 Plan (Entire Town) • Everyone gets fiber within 2 years – 2 business • Entire cost over 2 years areas in 2020 • Significant reliance on maximizing PSC grants for 2 CL – Fiber to the Premise • Immediate marketability years Entire Township over 2 Years • Only work on project for 2 years • Likely no CAF3 funding potential 3 - Do Nothing • No Highspeed Broadband investment cost • No ability to market Town to new businesses • No additional speed for critical internet needs • Continued tourism economic reliance • Lose prospective home/business buyers • Disadvantaged students
The Net/Net – How Might it Impact You? Now After Highspeed Broadband Service Monthly Cost Service/Tax Monthly Cost Direct TV/Dish/Karban Cable TV $60 to $120 CenturyLink 1Gb Broadband $65 to $85 Streaming TV (No additional cost if you $0 to $60 HughesNet/Karban/Verizon Broadband $60 to $120 already have an account - No contracts or installation cost) CenturyLink/Frontier Telephone $25 to $50 Additional Tax ($200k home for 20-year $0.50 to $4.17 loan, depending upon Option 1 or 2) Totals $145 to $290 Totals $65.50 to $149.17 Some streaming TV options Note – For illustration only. Individual costs may vary.
A Few Words from Fellow Stakeholders • Brent Jelinski – District Administrator, North Lakeland Elementary School • Matt Ashley – Boulder Junction Resident and Businessperson
Questions and Answers
Advisory Vote Ballots
Thank You!
Over to Town Chairman – Dennis Reuss
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