Bug Tussel bond vote postponed

By Kevin O’Brien

Marathon County supervisors voted unanimously on Tuesday to postpone a vote on a $12 million bonding request from Bug Tussel, which says it needs the money to complete a major broadband internet expansion by the end of the year.

The 35-0 vote, with three absences, came after supervisor John Robinson acknowledged that a motion to authorize the borrowing would likely not garner the three-fourths majority needed to pass a final resolution.

In June, the board voted 22-11 to pass an initial resolution that allowed county officials to begin bond negotations with Bug Tussel, but since then, questions have been raised by supervisors who are concerned about signing off on a 30-year debt repayment.

The bond would provide $5 million to complete a countywide fiber optic cable loop project approved in 2021, plus $3 million for a project in the Kronenwetter (Leathercamp) area and $4 million for debt reserves, capitalized interest and debt issuance costs.

In 2021, the board approved a $25 million bond for Bug Tussel to put up 16 towers and install 190 miles of fiber, but the project ran to into cost overruns and remains unfinished.

Robinson, chair of the county’s broadband task force, said he spoke to Bug Tussel representatives just before Tuesday’s meeting about a possible alternative financing plan

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that would involve the county using some of its reserve funds.

The goals would be to decrease the amount of money that needs to be borrowed and also shorten the payback period on the Leathercamp project, Robinson said.

As stated in his motion to postpone, county officials will have until the board’s October meeting to come up with a new proposal.

Acting as a conduit borrower, the county would not be responsible for making the annual debt payments, but if Bug Tussel and its parent company defaulted, the county would take on the liability and also gain ownership of all the cable and towers installed in the county.

At the board’s Aug. 15 educational meeting, three members of the public spoke in favor of the bond and one was opposed.

Mary Hartwig, a certified public accountant, raised doubts about Bug Tussel’s ability to pay off its debt with revenue from customers.

“I am not opposed to the broadband infrastructure, but I am opposed to a loan to a private entity LLC,” she said.

Chet Strebe, vice-president of business and technology at Northcentral Technical College, said broadband is critically important for both education and agriculture.

“In our increasingly connected world, reliable and high-speed internet is no longer a luxury,” he said. “It is a necessity for economic growth, educational opportunity and the sustainability of our agricultural sector.”

Two town chairmen, Ron Zimmerman from Harrison and Milton Olson of Weston, also spoke in favor of the new Bug Tussel bond request, citing frustrations from their residents about unreliable internet and cell phone service.

Bill Millhausen, chief deputy of the county sheriff’s department, also spoke about the importance of having Bug Tussel’s new towers available to improve emergency communications.

Scott Feldt, director of public affairs for Bug Tussel, told supervisors last week that the countywide fiber loop would be “delayed significantly” without more funding.

“We have made mistakes,” he said. “We want to rectify them, and we don’t want to walk away. We want to finish what we’ve started.”