One of the financial components debated was the project’s bond, particularly the implications of fluctuating interest rates. The possibility of a doubling interest rate poses a budgetary concern, impacting the long-term financial viability of the internet service. The committee also recognized that the ARP funds and the reduced grant do not require repayment, which is a favorable factor in the financial equation.

A critical aspect of the committee’s discussion focused on the project’s timeline. With a need for commitment within a year, the timeline is an essential factor in planning and executing the project phases. In addition, the committee reviewed the upfront costs for design and engineering, totaling $300,000, alongside make-ready expenses, which are the preliminary steps for preparing the utility poles and infrastructure necessary for the network.

The projected take rate for the internet service was another point of contention. Initially set at a 50% take rate, some members expressed concern that competition from existing service providers like Comcast, which may improve its speed offerings, could diminish this rate. A more conservative estimate of a 30% take rate was suggested for budgetary forecasts.

The committee also tackled the pricing strategy for the service. The debate revolved around setting a monthly customer rate that is competitive enough to attract subscribers while ensuring the project remains financially sustainable. This discussion acknowledged the exclusion of certain budgetary elements such as the administrator’s salary increases and clerical support. Additionally, the committee contemplated the need for a small structure, possibly a shipping container, for housing the internet infrastructure that facilitates direct and unassisted access.

Concerns were raised about the high costs associated with municipal construction. However, the committee opined that these costs would not drastically alter the overall budget. To further inform their planning, members suggested looking into budgetary data from other municipalities that have successfully implemented similar internet projects.

The challenge of establishing underground infrastructure in specific areas was also brought to light, with an emphasis on its potential impact on attracting business customers and influencing the take rate.