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Box Elder officials weigh roughly $870,000 in local match to finish broadband buildout
Summary
County staff told commissioners the state broadband grant has left a funding gap because of inflation; county and contractor representatives urged using economic-development reserves as a 25% match so the project can finish as scoped and keep communities eligible for future federal grants.
Box Elder County officials heard an update on the county's broadband grant and were asked to commit additional local matching funds to complete the build-out as originally planned.
Brian Carver, community development director for Bear River, said the county originally received about $5.6 million from a state broadband access grant, and that the state later reallocated roughly $1.6 million more, bringing the award to about $7.4 million. Work completed so far has passed about 1,000 of an estimated 2,800 homes and businesses in the project area. Carver told the commission that rising labor and materials costs mean the county faces a shortfall: "We're looking at, yeah, $650,000 in order to match the $2.6 million that's on the table, but we're also looking for an additional $220,000 to be used to match the work that's already been done over the last couple of months," he said, later summarizing the gap as "about, $870,000." (Brian Carver.)
Greg Stevens of Beehive Engineering Group, the project's contractor, said the grant funded middle-mile lines along main streets but that drops to individual homes average about $2,400 each. He said Beehive has contributed roughly $484,000 in in-kind materials and labor and has been offering free hookup during construction windows to reduce costs for residents.
Commissioners pressed staff on how the county might cover the gap without a general tax increase. Commissioner Summers pointed to an existing economic-development fund, noting there is about $3.7 million available in RDAs and suggested a budget amendment could supply the needed match without raising county-wide taxes. County staff and the Bear River Association of Governments said the state needs a commitment within weeks to avoid losing eligibility for additional federal broadband funding that could be announced later this year.
No final funding motion was taken during the commission meeting. Commissioners voted to take the information under advisement and to schedule the necessary RDA meeting or an interim action before the commission's next regular meeting so the county can respond to the state's timing requirements.
