By Matt de Simone
The Botetourt County Board of Supervisors held a public hearing about an amendment to the FY24 budget for the second Virginia Telecommunications Initiative (VATI) county/Lumos broadband project during the December meeting in Daleville last Tuesday. For the last couple of years, the county and Lumos have partnered to bring residents the fastest fiber optic internet to hard-to-reach homes and small businesses.
The board approved the proposed amendment to the FY24 county budget for an appropriation from the County Undesignated General Fund Balance in the amount of $1,965,206.70 to Economic Development Authority (EDA) Transfers.
Lumos Senior Director of Market Development John Spielman, along with engineering team members Dan McCallister and Shandie Bradshaw, gave a presentation highlighting “internet built for the future.”
Spielman shared photos of Lumos leadership with county leadership from previous meetings and activities throughout the year. He commended County Communications Director Tiffany Bradbury for creating a library of stakeholder engagement tools that better educate residents about the fiber projects and what it will do for the area.
“(The library tools) really help keep residents informed,” Spielman noted. “Everyone wants broadband built yesterday, but the more we’re able to communicate on the status of projects, the more we cut down on some of those inquiries. We’ve noticed a dropped in inquiries so we know these tools are working.”
Lumos worked with the county to leverage the Alternative Connect America Cost Model (ACAM) and VATI funding over the last few years. The service provider has brought fiber to 1,239 grant-funded homes with a remaining 2,173 homes to reach as the projects still progress.
In 2021, the county received the first portion of VATI funding thanks to more than $29.6 million in grants. That grant funding supported five projects that will connect more than 11,700 households, businesses, and anchor institutions to broadband service once completed, and leveraged over $34 million in private and local investments.
According to the county, per an agreement dated Nov. 1, 2022, between the Virginia Department of Housing and Development (DHCD) and Botetourt County (Grantee), the county was awarded by the DHCD a grant amount of $3,084,796.00 through the Virginia Telecommunications Initiative (VATI) within the American Rescue Plan Act of 2021. As part of the agreement, Botetourt will partner with Lumos Networks for a broadband construction project to provide access to broadband services to expand and improve these services to citizens. In particular, internet provided to 1,901 serviceable units including 43 businesses in the towns of Buchanan, Fincastle, and Troutville as well as areas within the county.
Last Tuesday’s meeting agenda item pertained to the third invoice received from Lumos totaling $3,332,721.00. Based on the budgeted allocation of product costs pertaining to this invoice, $854,637.30 would be provided by the VATI grant and $1,110,569.40 would be provided by the county contribution (both figures exclude a 10% retainage factor). Since both the VATI grant and the county contribution will be passed through from the county to the EDA and then to Lumos, this required an amendment to the FY2023-2024 county budget in the amount of $1,965,206.70.
It should be noted that the entire amount of the county contribution ($2,602,514.00) for this broadband project will be completely covered by the utilization of Federal American Rescue Plan Act (ARPA) grant funds received by the county.
Board Chair Mac Scothorn thanked Spielman and his team’s efforts while they continue working on complete the county’s broadband expansion.
For more from last week’s Board of Supervisors meeting, visit the county’s YouTube page at www.youtube.com/watch?v=ZQi3_qjpMS4.