WINDSOR – A favorable vote by the Bertie County Board of Commissioners will allow a broadband expansion project to gain funding to move forward without any financial obligation to the county.
eNCore Connects has requested the issuance of Project Revenue Bonds not to exceed $25 million to be used to finance or refinance the costs of acquiring, constructing, developing, furnishing, equipping, maintaining and installing fiber optic network cables, equipment and customer premises installations in the counties of Bertie, Halifax, Granville and Martin.
The Bertie Commissioners first learned of the project at their April 6 meeting where they were advised that their approval of a resolution was needed for the project to move forward. However, during discussion regarding the project, the commissioners opted to delay their decision on the matter in an effort to have additional time to study the proposal.
The board met again in a special meeting on Tuesday morning (April 28) where the proposal was again presented. At that meeting, Connor Crews, representing eNCore Connects, noted that eNCore Connects is the successor of Fybe and operating the broadband assets that were formally part of a subsidiary of Roanoke Electric Cooperative. He added that eNCore Connects is undertaking an expansion project of its broadband service in the previously mentioned four counties.
“They are doing that with two sources of money, federal grant dollars and tax-exempt bonds,” Crews explained. “As a 501 (c)(3) non-profit organization, eNCore Connects is eligible to borrow on a tax-exempt basis. It is proposing to do that through an entity known as the Public Finance Authority of Wisconsin.”
Crews went on to say that when those types of bonds are issued, the federal tax code requires an elected body with jurisdiction over the place where the finance assets are located approve the issuance of the bonds in principal following a public hearing.
As noted in the resolution, the county has no liability whatsoever for the payment of principal, premium or interest on the bonds. That burden falls on the borrower (eNCore Connects). Additionally, the bonds do not affect the county’s debt ratios or legal debt limit.
“Each of the other counties – Halifax, Granville and Martin – have approved these bonds in principal,” Crews said.
At a public hearing held as part of the April 28 meeting, no one spoke for or against the measure. Following brief remarks from the board, Commissioner Vivian Saunders motioned to approve the resolution. Commissioner Ron Roberson offered a second and the motion was approved without opposition.
As noted at the April 6 meeting, 3,000 service locations in Bertie County will be served by this broadband expansion project.