Isn’t municipal broadband subsidized by tax dollars?
Not exactly. UTOPIA is structured in such a way that cities pledge tax revenues to cover any shortfalls on the debt service not paid from subscriber revenues. The current loan is a 33-year municipal bond at around 6%. Projections show that with a low participation rate (i.e. 25% of eligible homes subscribing to an average of 2 services each) is enough to cover bond payments without any tax revenues. Most municipal networks have a participation rate of 20-30% by the end of the first year. Other networks may use differing models, though this one places the cost of the network squarely on subscribers.
Related Questions
- What does the poll tell us about the people who are not interested in directing tax dollars to a national commitment to afterschool? And can we win them to our side?
- WHY DO WE NEED A UNITED WAY - DOESNT THE GOVERNMENT MEET THE NEEDS WITH TAX DOLLARS?
- Isn’t municipal broadband subsidized by tax dollars?
