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PDF versionBRIGHAM CITY -- The city council has approved a $3,000 voluntary assessment for every property in the city to cover the cost of bringing UTOPIA and fiberoptics to those who want it.
"Boundaries within this area are congruent with the city boundaries, but this is a voluntary assessment only," said Laura Lewis, financial adviser for UTOPIA.
While the assessment is voluntary, those who don't pay it won't be able to access services provided through UTOPIA, essentially making the assessment a sign-up fee.
The city has provided $300,000 for construction of the project.
Part of the $3,000 voluntary pledge will go to pay back the city. The more people who sign up, the lower the amount the city will need to put upfront.
"The city is not putting out any money that we won't get back over time," said Todd Marriott, executive director of UTOPIA.
The network financed by bonds will become the city's property or infrastructure. UTOPIA will be the agent to manage the network.
Marriott said UTOPIA is not a monopoly or a business, it is an infrastructure.
"UTOPIA offers no services, it is a road. It is the most open-access fiberoptic infrastructure in the nation," Marriott said.
Mayor Lou Ann Christensen agreed and said, "What we are doing is on the same level as bringing water to Brigham City."
"The framework for UTOPIA is to act within the city's behalf. The city will be a major player in this project," Marriott said.
Local Internet service provider Ken Sutton said UTOPIA will help his business.
"It is so refreshing to talk to UTOPIA. With UTOPIA, everyone pays the same. Now I will be able to compete with Qwest and Comcast," Sutton said.
Construction will begin as soon as financing is arranged. The construction time frame is estimated to be four months. The project will be funded through special assessment bonds issued by the city.
Property owners can either prepay their assessment of $3,000 during the next 25 days, or opt to pay a maximum of $25 a month over a period of 20 years.
Those using the 20-year financing option will have a lien placed on their property as allowed by law.
Blaine Carlton, legal adviser for UTOPIA, said, "An assessment is a first lien on the property ... because we are adding value to the property. From the lender's perspective, we are adding value."
Eleven founding members of UTOPIA issued bonds to pay for the first portion of the network. In 2008, those bonds were refinanced in conjunction with UTOPIA's changing management.
Brigham City and the other pledging communities are responsible for a portion of those expenses until the network becomes profitable. So far the city has not had to pay anything on those bonds, but it is likely a portion of those bonds will come due in 2010.
