What is the Broadband Bond?
If the proposal passes, the project will be financed using a municipal bond that would cost about 2.9 mills over 20 years. Total amount borrowed by the township not to exceed a principal amount of $7,000,000.
Why is this project being proposed?
In June of 2016, Lyndon Township residents received a survey with the summer tax bill aimed at gauging public interest in broadband. 83% of the registered voter respondents said that having high speed Internet was “important “or “very important”. Additionally, when asked to prioritize a list of fifteen issues respondents ranked broadband access as second in importance, behind only “protecting water quality.”
The township board funded a feasibility study in 2016 to understand how this issue might be addressed. The feasibility study recommended that the township build a fiber optic network.
What will be the cost to the taxpayer?
Based on current property valuation information available from the township, the new bond will cost the average homeowner $263/year ($21.92/month). Cost of the millage to pay the bond is calculated at $2.91 per $1000 of taxable value (taxable value is about ½ the home’s market value).
After building the fiber network the township will partner with one or more private service providers to deliver Internet access to residents.
Estimated monthly costs for basic Internet access will be about $35 for 100Mb of bandwidth. 1Gb bandwidth will be available for $60 a month.
Total costs for a resident to get broadband service: millage bond costs + monthly costs for Internet access. For the average homeowner in Lyndon Township this will be around $57 a month.