Page 53 - 2021 Annual Reportprint

Communications Union District Annual Report for 2021
We are excited to share the progress we’ve made towards bringing high-speed Who We Are:
internet to the 50 member towns of NEK Broadband. Our pilot project in Concord, A Communications Union
Waterford and Lunenburg will offer 100 Mbps symmetrical service or higher to 342 District (CUD) is a municipal
addresses in late 2021 and early 2022. We’ve received additional state and federal entity made up of multiple
grant funding and are finalizing plans for a full-length construction season beginning towns. Our district is building
the spring of 2022. fiber-optic based internet
access that has a capacity far
The organization has matured with the addition of three key partners. The National beyond most current services
Rural Telecommunications Cooperative (NRTC) is experienced in design, available. Each town appoints
construction management, and materials procurement. Waitsfield Champlain Valley at least one representative to
Telecom (WCVT) will be our network operator and internet service provider. WCVT our Governing Board, which
brings over a century of experience in telecommunications and provides all the has chosen to develop a
modern services customers expect. Mission Broadband serves as an advisor and publicly-owned network.
adjunct staff.
Member Towns: All but these five towns in the Northeast Kingdom (Caledonia, Essex and Orleans counties) have joined
the district: Granby, Jay, Lemington, Norton, Victory. Wolcott in Lamoille county is also a member.
Project Plans: The overall project will require roughly $140 million and take at least five years to complete. Funding will
be through grants and municipal revenue bonds, as well as income from subscribers. The team is establishing technical
standards as well as analysis of all locations and their current internet access. Utility pole surveys are in progress, fiber
optic cable has been ordered, and we will be ready to continue construction in the spring of 2022.
Grants Received: NEK Broadband has received three different federal grants totalling $1,045,000 for the
Concord-Lunenburg-Waterford project, which began construction in November, 2021. We have been awarded almost $7
million for designing the entire network, hiring additional staff and preparing for the 2022 construction season. Smaller
grants were received from Vermont Community Foundation, Northeastern Vermont Development Association, Northern
Community Investment Corporation, and Northern Enterprises.
Obligations: Community National Bank Letter of Credit ($3.5 million); Northern Enterprises loan ($80,000)
Respectfully, Residents can sign up to receive regular general updates
and, in the future, information about when service will be
available at specific locations at:
Evan Carlson, Board Chair, Sutton Representative get.nekbroadband.org
NEK Broadband
Budget Summary
2021 Budget to Actual (Projected) 2022 Proposed Budget
Budget Actual Projected Surplus from 2021 $788,835
Total Income $93,700 $3,087,767 Grants $25,000,000
Total Expenses $90,350 $1,353,932 Net Operations Revenue -$52,900
Total Capital Investment $5,360,000 $945,000 Total Income $25,735,935
Annual Net Cash Flow $788,835 Administrative Costs $495,000
(Pre) Construction Costs $25,000,000
Total Spending $25,495,000

2021 Annual Report 53