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League and members weigh municipal broadband bond requirement that would add voter approval for revenue bonds
Summary
Members signaled concern when staff described a bill (SB 165 discussion) that would require voter approval of revenue bonds used for municipal broadband, an unprecedented statutory change; the League and some managers discussed an alternate path of enhanced notice rather than a statutory voter-approval mandate.
A bill that would require voter approval before cities issue revenue bonds to finance municipal broadband projects drew concern at the League meeting Feb. 10.
Staff said the bill language under discussion (often referenced as SB 165 in committee conversations) would establish a statutory requirement that revenue bonds for municipal broadband be approved by voters — a change participants described as unprecedented. League survey results presented earlier in the meeting showed 71% of LPC respondents were "very concerned" about imposing voter approval as a first-in-statutory precedent; staff said another 16% were somewhat concerned.
League staff and some municipal managers discussed alternatives, including enhanced notice and hearing requirements local governments would follow before issuing a revenue bond for municipal fiber or similar broadband systems. That approach would emulate past League compromises (for example, enhanced notice for utility-fund transfers) without creating a statutory referendum requirement.
League staff said the broadband industry and municipal broadband cities are "up in the air" about the enhanced-notice alternative and will take it back to their stakeholders. Staff warned members to watch for action alerts if the bill moves toward a statutory voter-approval mandate; if the enhanced-notice approach does not gain traction the League could face a floor fight.
No final League position was recorded at the LPC meeting; staff said negotiations with sponsors and stakeholders are ongoing.
