The Charlemont Broadband Committee’s goal has been to build a fiber network for the town that can be fully self-sustaining, with all costs of the network, including all debt, paid for from subscriber fees. The project is on track to do just that. The network is up and running, the finances look good, and it is expected to be fully self-sustaining. This $3.5 million investment in the town has been done with no increase to the tax rate.
The current fiscal year, which ends on June 30, has been the network “start-up” year. The goal for this year was simply to break even if possible. Barring unforeseen expenses between now and the end of June, the Broadband team is projecting the network will be “in the black” by at least $25,000!
Going forward, long-term debt payments will begin in fiscal year 2024. Charlemont projects that with the current take rate and pricing, the network revenues will be sufficient to cover the debt payments one year in advance. In total, the town will borrow approximately $1.1 million to pay for the network construction, far less than the $1.75 million originally authorized by the voters. This savings is the result of two factors: careful project management and, more recently, the allocation by the Selectboard of approximately $350,000 in ARPA funds to help pay for network construction.
On Tuesday, May 31, voters approved the network operating budget for FY23. This budget is based on current subscription levels, with no price increases. It projects an $80,000 surplus which will become retained earnings that will be used for future debt payments.