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As Emmetsburg Plans to Vote on Muni Network, Mediacom Misinforms

| Written by Lisa Gonzalez | No Comments | Updated on Nov 4, 2013 The content that follows was originally published on the Institute for Local Self-Reliance website at https://ilsr.org/as-emmetsburg-plans-to-vote-on-muni-network-mediacom-misinforms/

The Iowa community of 4,000 will take up Public Measure D on November 5th. Voters will decided whether to approve a $3.5 million bond issue to cover approximately half the cost to build a FTTH system. Incumbent Mediacom is distributing flyers throughout the community urging a “no” vote. Community leaders are doing their best to combat Mediacom’s propaganda by educating the voters.

We reported about the community’s 1998 vote to establish a municipal cable communications or television system. The city did not act on the vote at the time because the project was cost prohibitive. The estimated cost of the project is now about $3 million less than it was in the late 1990s. Emmetsburg wants to seize the opportunity by joining The Community Agency (TCA), a coalition of municipalities in the region that collectively own a hybrid fiber coaxial cable network. Emmetsburg would join with a full fiber network.

The town currently provides natural gas, water and wastewater services through its municipal utility.

In a flyer [pdf] aimed at convincing locals to vote no, Mediacom brags that “Customers in Emmetsburg get the same services as those in larger cities…” Unfortunately, Mediacom’s service in larger cities is also awful and more suited to the late 1990’s than the modern digital economy. Consumer Reports has rated Mediacom among the absolute worst Internet providers in the United States.

Public Question D reads:

“Shall the City of Emmetsburg, Iowa issue its notes in an amount not to exceed $3,500,000 for the purpose of paying costs of constructing and equipping all or part of the Emmetsburg Municipal Communications Utility, including the acquisition, construction and installation of a fiber to the premise broadband communications system and related equipment and distribution facilities, and including all or a portion of the costs associated with connecting the Emmetsburg Municipal Communications Utility fiber system with the system of the Community Cable Television Agency of O’Brien County a cooperative undertaking among the cities of Hartley, Paullina, Primghar and Sanborn pursuant to the provisions of Chapter 28E, Code of Iowa?” 

In addition to $3.5 million in General Obligation bonds, the Emmetsburg Municipal Utilities would issue $2.63 million in Revenue bonds.

Emmetsburg Utilities

A recent Reporter/Democrat article covered an October 29th information session in Emmetsburg. Representatives from the Emmetsburg Municipal Utility Board of Trustees hosted the meeting to educate voters. A panel of technical experts and community leaders answered residents’ questions. 

Curtis Dean [Broadband Services Coordinator from the Iowa Municipal Utilities Association] cited “a real world example: “I was in Spencer for the first decade of the Century, 2000 to 2010. People in Spencer saved over $10 million total on what they paid for their telecommunication vs comparable cities served by the same providers nearby. By the way, when we calculated those numbers in Spencer, we were using Emmetsburg as the comparison.” 

If the referendum does not pass, the project will not move forward. If the community approves the measure, public officials estimate construction as early as next spring.

Community leaders urge voters to vote yes. The Mayor and five City Council members published an “Open Letter To Citizens Of The Emmetsburg Community” encouraging a positive vote:

We encourage each and every eligible voter in Emmetsburg to take the time to cast your respective vote on November 5th. This is a very important decision and is one that we should make as a community. Together, we’ve accomplished many great things in the past. We look forward to continuing to do more of the same in the future. 

A recent letter in the Reporter/Democrat from the Emmetsburg Municipal Utilities Board of Trustees summed up the critical situation that faces many small towns with little or no telecommunications competition:

Progress needs to be supported. If we are not trying to grow we are dying. Many small county seat towns in Iowa are suffering economically and shrinking in terms of population and their ability to be viable for their citizens. This initiative to bring local telecommunications ownership back to Emmetsburg is critical in these efforts to maintain and grow our small community.