reply to battleop
Re: Where is the savings? Because they have to recoup the cost of building the fiber out. If someone wants to pay $15-$20, the DSL company, who has paid for their telephone lines many times over, can have 'em.
the thing is though. by IRS code they're NOT allowed to turn a profit. They're a city- which means they're NOT For Profit. Meaning they can never turn that profit to fully pay for it and they are lucky if they're allowed to break even at any time. Any money that they profit on will be a red flag for the IRS at the end of the year unless that city cooks their books like every other ones that thing they run the show.
·Verizon Online DSL
For tax purposes, infrastructure is amortized over X years. That amortization goes onto the tax books. Guessing the fiber assets are amortized according to a 15-year schedule. Interest on debt is deducted an expense as well.
Also, with all that money the city is supposed to be not making as a profit, they can invest in infrastructure. Or they can pay their workers a decent wage, giving back to the economy. Or they can donate to charity, or whatever. Lots of ways to spend profits and pay back infrastructure without being in the hole or cooking the books.