The City has been receiving questions about the recent printed materials circulating in regards to the referendum.
Q: Why are the ads in the newspaper and postcards coming to our mailboxes claiming the City is making a $25 Million Dollar Mistake and “Say No” to a $20 Million property tax increase. Are these claims true?
A: These claims are not true, they are lies. READ MORE >>
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Click on image at left to view flyer.
City Referendum
Voting
will take place
Tues., Sept. 18
(7 a.m.-8 p.m.)
at the Monticello Community Center gymnasium.
For more information call 763-271-3230.
You must be a Monticello City resident to vote.
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Results of the special election will be posted on this web page following the vote.
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The City-wide fiber optic project would be supported by
revenue bonds which are paid by revenues
generated from the fiber business services.
This fiber optic project would NOT require
any tax levy.
An ad appeared in a recent issue of the Monticello Times newspaper opposing approval of the telephone referendum on Tuesday, September 18th. It wants residents to believe that the cost of the city wide fiber optic network would end up as tax supported city debt. This is not true and here’s why.
The fiber optic project would be supported by revenue bonds which are paid by revenues generated from the fiber business services. This fiber optic project would not require any tax levy, even if it doesn't succeed. There will be no taxes involved with this project. The City will be obtaining revenue bonds which will be sold to private investors to build the infrastructure for the city-wide fiber optic network and start its own telecommunications business. Once the business is up and running, customers who take service (Internet, telephone and cable TV) will pay monthly bills creating revenue which will pay back the bonds over a 20 year period of time.
Revenue bond financing protects
City taxpayers and here’s why.
First, there are very good reasons to expect that the bonds will be repaid
from the operations of the system. The bonds are being sold to private
investors and they buy them only when they expect the City business to
succeed based on the thorough business plan prepared by the City and relied
upon by investors.
Second, these bonds are not linked to the tax system of the City. These are
revenue bonds linked to the revenues of the business that the City will
operate. The City is not obligated to pay revenue bond debt with taxes.
The financial risk if the City business had a shortfall or failed lies with
the investors in the revenue bonds, not on the City.
Third, the amount of revenue bonds to be sold should cover the costs of the
system. But what happens if the business needs more money because it grows
too fast or too slow? Then more bonds of the same type would be offered and
the investors would look at the business operation to evaluate them. |
READ MORE >>
Community survey shows favorable support
The Monticello City Fiber Optic Committee recommended to Council that a special election be held on Tuesday, September 18, 2007 for the purpose of holding a referendum on the question of whether or not the City shall construct, purchase or acquire a telephone exchange in order to provide telephone service as part of the city-wide fiber optic network. The Council voted unanimously to approve the special election. Holding the referendum provides an avenue for citizens to voice their opinions.
Read about the telcos who promised fiber optics but did not build it.
NEW ADDITION! "The Net At Risk" by Bill Moyer, Twin Cities Public Television
Read about municipalities involvement with FTHH (Fiber To The Home)
NEW ADDITION! Interview with Jim Baller
Read about the viability of rural broadband
NEW ADDITION! Article by Geoff Daily
Monticello City Information regarding the Upcoming Referendum
The City is planning to construct a city wide fiber optic network to provide Internet, cable TV and telephone services. Construction by the City of a telephone exchange which would provide telephone service over the city-wide fiber optic network requires voter approval under Minnesota law. The proposed telephone exchange would be financed with revenue bonds which are to be paid back by revenues generated from those taking telephone service (as well as Internet and cable TV services) without a pledge of City taxes. In order to provide telephone service as part of the network, the City is asking eligible voters to vote on the following –
QUESTION THAT WILL APPEAR ON THE BALLOT:
Shall the City of Monticello be authorized to construct, purchase or proceed to acquire a telephone exchange?
Why does the ballot question only ask about a telephone exchange?
The City is able to operate Internet and Cable TV services over a City-wide fiber optic network without referendum approval. If the referendum passes, and the ownership of a telephone switch is part of the fiber network, the City would not have to purchase telephone services from an outside provider. In order to offer telephone services, the City would need to own a telephone switch or purchase telephone services at wholesale cost from another company. The City put out a request for proposal for offering telephone services in the City of Monticello and did not receive a response back from the local providers. The City will not be dependent on pricing from another company if it owns its own telephone switch. The City could set its pricing based on the operation of a City-owned telephone switch.
Where would the City-owned telephone exchange be located?
The City intends to construct a building within the City limits to house the equipment for providing services for telephone, Internet and Cable TV. Operation of this telecommunications business would also include a local office with local staff people to help with customer service as well as providing technical assistance.
Why is the City of Monticello conducting a referendum?
The City is conducting this referendum because telephone service is one of the offerings that would be provided to Monticello
residents over a city-wide fiber optic network the City is planning to build. The only way for City residents to hold ownership in this telephone service, by Minnesota State Statute, is for residents to vote on and approve a referendum by 65% or more. The City is asking voters to authorize the construction, purchase or acquisition of a telephone exchange in order to deliver local and long distance telephone service on a city-wide fiber optic network. The system will also offer cable TV and high speed Internet services; however, those services can be offered by the City without special authorization by the voters.
What happens if the referendum passes?
The City would be authorized by the voters to construct, purchase or acquire a telephone exchange. This would enable the City to directly offer telephone service throughout the community along with cable TV and high speed Internet services.
What happens if the referendum fails?
The City would not be authorized by the voters to construct, purchase or acquire a telephone exchange.
If the referendum passes, what's next in the process for building a City-wide fiber optic network to every home and business in the City limits?
The next step would be to complete the financing requirements, retain engineering services to design the system and begin construction. This set of activities will take approximately 4 to 6 months following the referendum, if it passes. The first
services to customers are likely to begin within 18 to 24 months (early summer 2009), after the fiber optic network is built .
Voting will take place on Tuesday, September 18, 2007
at the Monticello Community Center gymnasium. |
You must be a resident of the City of Monticello to be eligible to vote. Polling hours will be held from 7 a.m. to 8 p.m. You must be a resident of the City of Monticello to be eligible to vote. Please bring proof of residency (ie. MN Driver’s License). If you are unable to vote in person on September 18, please contact Monticello City Hall at 763-271-3206 to obtain information about an absentee ballot.
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