Bringing Highspeed Broadband to Boulder Junction - November 14, 2019 - Town of ...

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Bringing Highspeed Broadband to Boulder Junction - November 14, 2019 - Town of ...
Bringing Highspeed Broadband to Boulder Junction
                  November 14, 2019
Bringing Highspeed Broadband to Boulder Junction - November 14, 2019 - Town of ...
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
Bringing Highspeed Broadband to Boulder Junction - November 14, 2019 - Town of ...
2017
 Economic
Development
   Survey
• 169 Responses
• A Wealth of Information
• Business Develop Another Key
  Response
Bringing Highspeed Broadband to Boulder Junction - November 14, 2019 - Town of ...
• 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
Bringing Highspeed Broadband to Boulder Junction - November 14, 2019 - Town of ...
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
Bringing Highspeed Broadband to Boulder Junction - November 14, 2019 - Town of ...
DSL vs Fiber Optic Internet
Bringing Highspeed Broadband to Boulder Junction - November 14, 2019 - Town of ...
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
Bringing Highspeed Broadband to Boulder Junction - November 14, 2019 - Town of ...
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
  $$)
Bringing Highspeed Broadband to Boulder Junction - November 14, 2019 - Town of ...
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
Bringing Highspeed Broadband to Boulder Junction - November 14, 2019 - Town of ...
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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