Los Alamos Council authorizes up to $40 million in GRT bonds to finance county broadband buildout

The Los Alamos County Council voted unanimously on Nov. 18 to authorize the issuance of gross‑receipts tax (GRT) improvement revenue bonds of up to $40 million to finance a countywide fiber‑to‑the‑home broadband network.

County staff told the council the project is planned as an open‑access, community‑owned network that would be built in phases over three to four years and is intended to serve roughly 10,014 locations. Staff said the bonds would be repaid from existing pledged GRT revenue streams (not the recently adopted 5/8‑cent increment) and that the council would delegate pricing and final terms to the council chair and county manager at sale time.

“That's what the community broadband network is designed for,” Jerry Smith, the county’s broadband manager, said, adding that Bonfire — the vendor contracted to design and build the network — will operate it under a five‑year term with potential renewals. Smith said the project is intended to provide redundant internet feeds and reduce outages by adding a second fiber route — a new line built with San Ildefonso Pueblo — and that additional redundancy options (including fiber run alongside a planned LANL power‑line project) are being pursued.

Bond counsel Peter Franklin noted the ordinance delegates authority to the county manager to determine the sale method and to approve final bond terms, with the manager reporting sale results at a public meeting after pricing. Eric, the county’s municipal advisor on the call, said market conditions will determine the final interest cost and projected interest rate range.

Staff projected an initial aggregate debt service of roughly $5.2 million in year one as new bonds are wrapped with the county’s existing 2013 bonds, rising to about $6.2 million in years two and three before settling near $3.0 million for the remainder of a 25‑year schedule. Staff said that structure was intended to lower near‑term budget pressure and preserve long‑term affordability.

The council held a public hearing; one resident, Andrew Fraser, urged adoption, citing recent outages as evidence of the need for a county broadband solution. After questions about term length, optional redemption and the interaction with prior debt, Councilor Reiting moved adoption and the council approved the ordinance on a 7–0 roll call.

Next steps: staff will prepare a preliminary official statement and related documents, and the county expects to proceed to a bond sale and pricing in a February timeframe, with construction timed to follow the financing.