Somerville will vote on its municipal budget and on whether to continue its pursuit of a municipal broadband network during the town meeting by referendum Tuesday, July 14.
The ballot includes 19 questions.
Question 8 asks voters to authorize the town to accept and use more than $1.4 million in federal and state funds to set up a town-owned broadband network, if the town wins a grant from the U.S. Department of Agriculture.
The town has applied for $1,226,737 from the U.S. Department of Agriculture and $210,000 from a ConnectMaine Authority grant. It would borrow $214,170 to match those grants.
If the town borrows those funds at an interest rate of 3%, the total cost over the 10-year term of the bond would be $249,508.
During a March 7 special town meeting, voters approved an application to the U.S. Department of Agriculture’s ReConnect Rural Broadband program to finance 75% of the cost of the network.
According to First Selectman Chris Johnson, the question on the July 14 ballot would also allow the town to accept any other monetary or in-kind donations or grants related to the project.
If the town receives the grants, it plans to partner with Axiom Technologies LLC, of Machias, to build and manage the network.
The cost of internet service through the system would range from $69.99 to $109.99 monthly, according to Mark Ouellette, president and CEO of Axiom, who spoke at the special town meeting.
Ouellette said that if the town gets the grants, installation would likely take place in the summer of 2021, with homes receiving service in the fall of 2021.
The town’s bond payments would be covered by revenue from customers of the service. The estimated payments would represent 54% or less of the estimated revenue, according to Johnson.
A fiscal note on the ballot explains that, if voters approve the question and the town wins the grants, the bond would be issued in spring 2021 and the first payment would be due in the 2021-2022 fiscal year.
The town estimates that a payment of $27,842 will be due in the 2021-2022 fiscal year, with estimated revenue coming in at $51,507.
The average annual bond payment, including principal and interest, is estimated at $24,951, paid from an estimated annual revenue of $57,173.
Polls will be open from 8 a.m. to 8 p.m. in the gymnasium at Somerville School.
Budget
Somerville’s 2020-2021 municipal budget totals $554,766, a decrease of $10,509 or 1.89%.
The decrease is attributed, in part, to the refinancing of roadwork debt through the Maine Municipal Bond Bank earlier this year.
Another decrease comes from the town budgeting $3,100 for discounts for taxpayers who pay early, down from $10,000.
The replacement of an old printer with a new device, along with lower costs for supplies, and a switch to a postage meter service to reduce the per-item cost of mailings, resulted in savings in the administration budget. That budget totals $27,408, a decrease of $7,277 or 21%.
Municipal elections
Voters will also elect three officials. Three incumbents are seeking reelection, with no contested races. Third Selectman Jarad Greeley and RSU 12 Board of Directors member Russell Gates are running for three-year terms, while Road Commissioner Willard Pierpont is running for a one-year term.
