a discussion ensued over the sudden budget increase to $4 million. One committee member expressed disbelief at this figure. Particular concern was raised about a nearly $1 million allocation for traffic management during installation, with the member noting the absence of law enforcement during current pole replacements on their street.

The committee delved into make-ready costs, which involve preparing existing infrastructure for new fiber installations. These costs, primarily related to pole modifications, were estimated at $700 per pole. Despite higher initial estimates, the committee preferred this cautious approach to avoid future financial pitfalls and ensure taxpayers would not be left with significant debt if the project failed.

Financial sustainability remained a recurrent theme. The repayment structure for bonds was clarified, assuming semiannual coupon payments with a 5% interest rate. Initial subscriber estimates suggested approximately 276 subscribers, based on a 50% uptake rate. However, some members expressed skepticism. The comparison to Westfield’s 50% uptake rate after eight years underlined concerns about meeting bond obligations swiftly.

The committee also scrutinized the latest financial models, which were circulated as spreadsheets. Concerns were raised about the clarity and comprehensibility of these documents. It was suggested that the spreadsheets be labeled more clearly for those outside the committee, especially to aid in understanding the expected number of dwellings within each Fiber Service Area (FSA). The geographic representation of these areas was the only available data at the time.

The financial debate extended to the consideration of excess funds from bond borrowing, which could provide a buffer for the town. The borrowing model typically involves short-term notes converted to long-term bonds, allowing for flexibility in financing. It was noted that if the total borrowing needs were less than anticipated, the town would not have to bond for the full amount.

Competitive landscape and pricing strategies were also discussed. The committee referenced Westfield’s Whip City Fiber, which offers a service rate of $69.95 and has a take rate of around 50%. To attract initial subscribers, suggestions included offering a promotional rate or a discount for customers who prepay for a year. The financial goal was to generate approximately $12,500 monthly to cover bond obligations. Discussions revolved around potential pricing structures to reach this target, including focusing on business sector needs, as businesses often pay higher rates for services.

The committee acknowledged the importance of determining initial target areas for service deployment, focusing on population density and logistical challenges of make-ready work. The initial areas considered included those near existing fiber access points. Clarity was sought on Westfield’s make-ready timeline and processes, as these would influence Southwick’s rollout strategy. A suggestion was made to gauge interest among residents via an online platform to track potential subscribers by address, thereby directing deployment based on areas with higher interest.

The broader municipal broadband initiative context was examined, particularly in comparison to other towns without existing municipal electric services. The committee recognized Southwick’s unique position in pioneering such efforts amidst competition and noted state funding initiatives supporting broadband expansion in less competitive areas.

The committee also discussed the necessity of a depreciation schedule and a revenue sheet to track subscriber growth and income over time. It was acknowledged that various expenses, including maintenance and repairs due to accidents involving downed lines, would arise throughout the project. An annual insurance expense allocation and a $100,000 budget for maintenance were noted, prorated based on the build-out extent.

Finally, the committee touched upon potential government subsidies for subscribers, noting the recent expiration of federal subsidies as a concern. Strategies for informing new residents about available services were considered, despite logistical challenges in ensuring effective dissemination during the home-buying process.