Solving Municipal Broadband – City of Brooks (Part 3)

One of the most important considerations for the City of Brooks’ broadband project was its financial requirements.

As part of its business model, Brooks is required to invest $5.4 million. Excluding the legal component, the City was able to finance its share of the project using the federal government’s Canada Community-Building Fund (formally known as the Gas Tax Fund). The funding partner, who was part of the selected proponent, will contribute up to $15 million.

Most municipalities would find the prospect of undertaking a broadband project cost prohibitive. For the City of Brooks, it will be a revenue-generating opportunity that will earn them $10 per user per month once operational. The project is expected to recover the initial investment within 20 years, and the agreements limit negative operating variances so that the tax base is protected.

By dividing the network’s construction across eight different areas within the community, the City can ‘go live’ incrementally and start earning revenue sooner rather than later.

Next week’s article – Part 4 – will detail this project’s outlook and lessons learned. Please click here to read part 1, part 2 and part 4 of the series. For more information, please contact DanB [at] abmunis.ca (Dan Blackburn), Senior Director of Growth & Innovation