The big question being asked around Cook County is “what will we be paying for fiber optic services?” The truth be told…we are paying for it already.
The federal government has been handing out billions of dollars across the nation for fiber optic infrastructure, dollars it doesn’t have, borrowing funds by issuing treasury bonds and in part furthering the need to increase our nation’s debt ceiling. Repayment of this spending will last for decades through federal taxation.
On the local level, Arrowhead Electric Cooperative has additionally been given four million dollars of 1% tax referendum funds for its fiber optic endeavors. Including bonding costs and interest, over seven and a half million dollars of county 1% sales tax proceeds will need to be collected to retire this funding.
You will pay both the federal and county taxes to subsidize fiber optic whether or not you receive this service. Should you subscribe to Arrowhead Electric’s “triple play” broadband services, at let’s say $120/ month, $9.45 will be added to your bill in state and county sales taxes.
Arrowhead Electric will maintain its fiber optic network here in Cook County. Administrative and operational costs will be recovered either through an additional monthly service charge, as Arrowhead currently charges electric customers, or these costs will be passed on through providers’ monthly fees for phone, internet and television services.
In addition to receiving federal grants and 1% tax referendum funds, Arrowhead Electric has assumed ten million dollars in loan debt to build out countywide fiber optic infrastructure. Debt service for this borrowing will also be recovered through monthly charges for broadband.
Cook County residents can expect to pay the monthly fiber optic service fees and associated technology upgrades for all county and city run entities through increased property taxes.
While many believe broadband is essential to keep pace with the world at large, the total financial burden of fiber optic to the residents of Cook County will be significant.
Fiber optic…a perk for government…a write-off for business…another stone on the back of the taxpayer.
Bob LaMettry
Grand Marais
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