• Herriman residents often express a desire for more and better internet options that serve the entire city.
  
• So far, private Internet Service Provider companies (ISPs) have not chosen to install fiber-optic connections in many areas of Herriman. Some areas have two or fewer options for internet access, and typically only the newest subdivisions have fiber-optic infrastructure. This is partly because it is generally more expensive for ISPs to install infrastructure in existing neighborhoods than in new ones as they are being built.
  
• A publicly-owned, citywide network provides an opportunity for 100% residents to have access to high-speed internet while allowing multiple ISPs to compete on the open market for residents’ subscriptions. Such models have been successful in many other cities in the U.S.
  
• The City can require a high level of service for any ISP wishing to use its fiber-optic network.
  
• This style of network and service helps avoid a monopoly for any one company while allowing every home and business to have an opportunity for quality internet access.
  
• ISP companies don’t need to worry about installing and owning the infrastructure themselves. Rather, they may simply buy in to an existing system where they can serve any Herriman home or business.
  
• The City government is interested in the ability to have its own secured network that reaches all its facilities and infrastructure. This would help manage traffic infrastructure, stormwater flow, and water usage, and upgrade connectivity for emergency first responders.
  
• Universal high-speed internet access helps enhance education, telehealth, an efficient and growing economy, and more.
  

A monthly utility fee estimated at about $15 will come with a basic level of internet access for no additional cost. Speeds at this basic level will be about 10 megabits per second (Mbps), or generally enough speed for basic internet browsing and email.

Users may upgrade to enhanced high-speed broadband (for example, 1 gigabit per second) through a private Internet Service Provider company (ISP). While prices for upgrade plans aren't yet known, projections show that even with the $15 utility fee, high-speed prices will meet or beat current market prices. The citywide network will be open for multiple ISPs to provide services to residents. For example, if you currently pay for high-speed internet access at $75 per month, it's expected that with the citywide municipal fiber network, the $15 utility fee combined with the price for a new high-speed internet access plan would cost about the same amount that you're currently paying.

No. Tax money will not be used for the construction or operation of the network. Financing the project will occur through a bond issued by an entity that is separate from the City. Therefore, City finances (taxpayer funds) will not be used to repay the bond. While the financial projections are still being finalized, the City Council will not proceed with the project if any tax money would have to be used in the business model.

The project will stand on its own and the bond will be repaid strictly by revenue generated from the utility fees and infrastructure buy-in from internet service provider companies. There is no difference in risk to taxpayers for this network versus traditional private networks built and operated by private companies.

Furthermore, residents may choose to opt out of the network entirely and no one will be forced to participate. However, those who opt out and later wish to opt in must pay the full cost for connection (likely a few thousand dollars).

No. While the City believes this project would greatly benefit our entire community, residents may choose to opt out of the network entirely and no one will be forced to participate. However, if you change your mind later and want to connect your home to the network, you will need to cover the full cost of connection—likely a few thousand dollars. Residents and businesses will be opted in by default, but anyone may opt out.

While exact prices from private companies are not yet known, projections show that even with the utility fee, prices for high-speed internet access will meet or even beat current market prices.

It is important to note this system would be financially self-supported and no tax money will be used to fund the construction of the network. The network will be financed through a public utility that is not tied to the City's taxpayer funds.

While it is true that a privately owned and operated fiber network (such as Google Fiber) would eliminate up-front costs by a public utility, subscribers to any private company cover both the costs of the company’s own installed network and the costs of providing internet access as part of their monthly subscription fee. A publicly-owned network’s monthly user fees would do the same, but would come with other advantages as well, including ensuring 100% of homes and businesses have access, allowing multiple companies to compete for customers, and improving City services.

The City will not move forward on the project if the users’ monthly fee is not competitive with current market prices. An citywide open-access network, as proposed, allows multiple internet service provider companies to serve end users. This will increase competition and allow residents more choices on which company to purchase internet service from. Current projections show that high-speed internet prices will meet or even beat current market prices. However, the latest estimates show that the total project cost, interest rates, and required subscription rates to make the network viable are significantly higher than earlier projections showed.

Right now, Herriman City and Strata Networks are working on a scope, high-level design, and business and financial models. Those items were presented to the City Council in November 2023. Project costs, bond interest rates, and required subscriptions to make the project viable are significantly higher than previous estimates showed. The City Council is not comfortable with the financial projects as they currently stand. The City will continue to evaluate the project and study the economy to ensure that it will not be approved unless the project is financially viable.

If the City approves the project, construction would begin within the next 12 calendar months and be completed within in phases in about three years.

The exact business model is still being worked on, and the exact financial method will depend on what the City Council chooses. The infrastructure cost is expected to be between 60 to 75 million dollars. Funding will likely include a bond that is paid back by monthly utility connection fees and private internet service provider company buy-in fees. The bond will be through a public utility that is separate from the City and its finances. Tax money will not be used to pay back the debt as the network will be self-sustaining.

Residents and businesses will pay a utility fee of about $15 that comes with basic internet access of up to 10 Mbps (megabits per second). However, those wishing to select increased speeds such as 1 Gbps (gigabit per second) may choose to do so for a monthly fee. Projected models show that the rates for increased speeds will be competitive and the service will be equal to or better than any currently offered in the city. However, overall project cost projections exceed previous estimates. The City will continue to evaluate the economy and viability of the project.

No. Herriman City is hiring Strata Networks to design (and build if it's approved) the network, but the City or public utility will own the system. The City or public utility will then allow Internet Service Provider (ISP) companies who meet qualifications to use the network and compete to provide internet service to residents. So, even though one company is building the network and the City or public utility owns it, it is still a free market for residents to choose the best option for them.