PUD Board meeting Monday, September 7, 2026 · 3:00 PM. Public comment is open — attend in person or join by Zoom →

Sources & uses · follow the money

Where every telecom dollar actually goes.

This is the question a decades-long observer of the county's broadband put to us directly: if you look at the money in and the money out of the telecom fund, is it just flat? So we rebuilt it — from the District's own budget workbooks, line by line, reconciled to the dollar. The answer is yes, it's flat on top — and that's exactly what hides the real story underneath.

The shape of it

Flat on top. Hollowed out underneath.

Across five years the telecom business took in a steady ~$3.25 million a year and spent a steady ~$3.0 million. Nothing about the totals looks alarming. But watch what happens inside that flat envelope: the investment slice shrinks while the overhead slice grows — and a surplus is set aside every single year.

~$3.25M
revenue per year — essentially flat 2021–2025
~$3.0M
total spending per year — also flat
+41%
rise in operating / overhead ($1.43M → $2.01M)
−51%
cut in capital investment ($1.37M → $0.67M)

How each year's revenue was used

Operating / overhead Capital (investment) Debt service Surplus (set aside)
2021
$1,426K
$1,369K
2022
$1,732K
$1,081K
$449K
2023
$1,977K
$1,065K
2024
$1,956K
$756K
$300K
2025
$2,015K
$667K
$329K

Bars scaled to the highest year's revenue (~$3.5M); each segment is labelled in $thousands. Source: the District's Wholesale Telecom Proposed Budget workbooks (FOI/PRA). Each year's segments sum exactly to that year's Revenue Estimate. These are budgeted figures — see the caveats below.

Both directions

Every dollar in, every dollar out — one picture.

Two of the FOI documents, drawn as one flow. The left half is who actually paid the District — its own monthly billing reports, actuals to the dollar. The right half is where the District's own 2025 budget sent the money. Follow the rust band: rural wireless carried $1.14 million in — and the budget sent $84,000 back.

Who paid — 2025, billed actuals Where it went — 2025 budgetCarrier fiber & transport → telecom revenue: $1,488,973 (billed, 2025)Rural wireless — the paused line → telecom revenue: $1,139,466 (billed, 2025)Local business & home fiber → telecom revenue: $473,028 (billed, 2025)Wholesale internet bandwidth → telecom revenue: $193,275 (billed, 2025)One-time builds & fees · $66,672 → telecom revenue: $66,672 (billed, 2025)telecom revenue → Wages & benefits: $1,186,139 (2025 budget)telecom revenue → All other operating: $828,562 (2025 budget)telecom revenue → Debt service — ARRA loan: $238,525 (2025 budget)telecom revenue → Fiber capital: $267,200 (2025 budget)telecom revenue → Core network & IT capital: $316,400 (2025 budget)telecom revenue → Wireless reinvestment · $83,750: $83,750 (2025 budget)telecom revenue → Budgeted surplus: $329,424 (2025 budget) Carrier fiber & transport $1,488,973 NoaNet, Zayo, Lumen, Charter — dark fiber, wavelengths, colocation Rural wireless — the paused line $1,139,466 via the 7 local providers: Highland $381K · NCI Datacom $269K CommunityNET $220K · Methownet $109K Will Connect $104K · PC Telecom $40K BHPcom $16K Local business & home fiber $473,028 retail fiber connections Wholesale internet bandwidth $193,275 One-time builds & fees · $66,672 Wages & benefits $1,186,139 one shared crew runs fiber and wireless All other operating $828,562 contracts, maintenance, software, leases Debt service — ARRA loan $238,525 Fiber capital $267,200 Core network & IT capital $316,400 nodes, power, servers, test gear Wireless reinvestment · $83,750 ← 7¢ per $1 the wireless line brought in Budgeted surplus $329,424 into the District's single combined fund TELECOM REVENUE · ~$3.3M / YR

The same flow, year by year: of every $1 the wireless line brought in, its budget put back…

31¢
2021
28¢
2022
19¢
2023
16¢
2024
2025
2026

Wireless revenue: billed actuals from the monthly billing reports (2026 annualized from Jan–May). Wireless capital: the budgets' categorized wireless lines — the same figures as the ledger below.

What's certain: the left half is billed actuals from the District's monthly billing reports — cross-checked across three report cuts, to the dollar (pass-through taxes excluded). The right half reconciles exactly to the 2025 budget workbook's own total.

What's honest: the two halves come from two documents on two bases — $3.36M billed vs. a $3.25M budget estimate, about 3% apart — so each half is drawn to its own scale. The split of budgeted dollars is the District's own line items, not our allocation.

Where tracing ends: past the surplus, dollars enter the District's single combined electric-and-telecom fund. We don't claim to follow them further — no one can; that's how the District reports. What's knowable ends exactly where this picture does.

The investment slice

Network investment was cut in half — and the wireless part nearly to zero.

Here's only the capital slice from above, broken into what it was actually spent on. The total shrinks year over year — and the wireless lines (the radios and systems serving the rural majority) fall fastest, from $330K to $84K while fiber and core IT held up.

Wireless (radios, augmentation) EOL hardware replacement Fiber builds & optics Core IT, power, tools
2021
$330K
$191K
$642K
$207K
2022
$315K
$204K
$350K
$212K
2023
$218K
$227K
$448K
$173K
2024
$183K
$367K
$182K
2025
$267K
$274K

Bars scaled to 2021 capital (~$1.37M), so the shrinking total is visible. The wireless/fiber/core split is a line-item classification of the budget descriptions (campaign reading; account totals are exact). The dedicated wireless lines fall $330K → $84K (2021–2025) and to $25.6K in the 2026 budget — a ~92% cut.

The same cut, as a fairness ratio: share of the money in vs. share of the investment back

Every year, wireless brought in about a third of the telecom revenue — steady as a metronome. Watch what happened to its share of the capital budget:

2021
30.2% of revenue in
24.1% of capital back
2022
32.2% of revenue
29.1% of capital
2023
33.3% of revenue
20.4% of capital
2024
34.5% of revenue
24.1% of capital
2025
33.9% of revenue
12.5% of capital
2026
32.2% of revenue
4.4% of capital

Revenue share: wireless billing ÷ telecom operating revenue (ex tax), from the District's own monthly billing reports — actuals (2026 = Jan–May). Capital share: the categorized wireless lines ÷ the telco-funded capital budget. 2026's denominator excludes the $10.3M in grant-funded fiber builds to be fair — include them and wireless's share of 2026 capital is 0.2%.

The clearest single line: “Wireless/Wifi System Augmentation” was budgeted at $150,000 in 2021, $55,000 in 2022–2023, $15,000 in 2024, and $0 in 2025. A reader doesn't need an accounting degree to ask the District: why did the line that keeps the rural network current go to zero — while revenue never fell?

Starved, then switched off — the whole sequence on one page

The bars are the District's own budgets. The numbered diamonds are dated events from its own minutes and resolutions. Revenue held near $1.1M every single year while this happened.

1 2 3 4 5 $330K 2021 $315K 2022 $218K 2023 $183K 2024 $83.8K 2025 $25.7K 2026 THE RECORD, IN ORDER
1Feb 2022 — Res 1768 waives conversion fees to move customers onto the wireless platform
22025 budget — $0 for the network itself; the only wireless dollars left are customer radios
3Oct 27, 2025 — first “surplus broadband equipment” resolution (Res 1845)
4May 4, 2026 — the no-further-investment letter; the minutes record no motion and no vote
5Jul 7, 2026 — the public surplus auction for the new-in-box upgrade radios closes

Bars: the categorized wireless capital lines in the District's Wholesale Telecom Proposed Budget workbooks (FOI/PRA) — the same series as the charts above. Events: Res 1768 (Feb 2022) Exhibit B; Res 1845 (Oct 27, 2025 minutes); May 4 and May 18, 2026 minutes; Public Surplus auction #4029679 (closed Jul 7, 2026). The surplus resolutions are one-sentence entries — the minutes never itemize what was surplused; the auction's contents are documented by the listing itself.

The actual ledger

Every capital line, straight from the budget.

No paraphrasing. These are the literal capital line items in the District's budget workbooks, by year, with the wireless lines shaded. Open a year and read exactly what the District planned to build — and what it stopped building.

2025 capital total $667,350
wirelessWireless Subscriber Units$83,750
EOLCapitalizable Network Upgrades & Capitalizable Replacement of EOL Network Hardware$42,500
fiberFiber Build - Conconully Hwy to Berney$30,000
fiberFiber Build - Brewster to Pateros Aerial$30,000
fiberFiber Distribution Builds$200,000
fiberCapitalizableOptics$7,200
coreBroadband Node Rework$50,000
coreBroadband Tools$33,400
core3 ESX Hosts for VMWare Environment$45,000
coreNet Elastic and associated network hardware$42,500
coreDelta/Eltek/Valere DC Power system$37,500
coreReplacement HVAC units for Broadband Nodes$25,500
coreNetwork Expansion$40,000
Capital total, 2025$667,350
2024 capital total $756,200
wirelessWireless/Wifi System Augmentation$15,000
wirelessWireless Subscriber Units$167,500
EOLCapitalizable Network Upgrades & Capitalizable Replacement of EOL Network Hardware$25,000
fiberFiber Build - Berney to Sit-N-Bull$135,000
fiberFiber Build - Brewster to Pateros Aerial$30,000
fiberFiber Distribution Builds$200,000
fiberCapitalizableOptics$2,200
coreBroadband Node Rework$50,000
coreBroadband Tools$1,300
coreNetApp Replacement$56,700
coreReplacement HVAC units for Broadband Nodes$25,500
coreNetwork Expansion$45,000
coreBroadband Test Equipment$3,000
Capital total, 2024$756,200
2023 capital total $1,064,950
wirelessWireless/Wifi System Augmentation$55,000
wirelessWireless Subscriber Units$162,500
EOLCapitalizable Network Upgrades & Capitalizable Replacement of EOL Network Hardware$227,250
fiberFiber Build - Berney to Sit-N-Bull$125,000
fiberFiber Distribution Builds$200,000
fiberCapitalizableOptics$122,600
coreBroadband Node Rework$50,000
coreBroadband Tools$1,400
coreBroadband Test Equipment$2,400
coreCisco Nexus 3542 Switches for VM environment$28,000
coreNetAppDR in Oroville$21,000
coreReplacement HVAC units for Broadband Nodes$21,000
coreNetwork Expansion$45,000
coreBroadband Test Equipment$3,800
Capital total, 2023$1,064,950
2022 capital total $1,080,650
wirelessWireless/Wifi System Augmentation$55,000
wirelessWireless Subscriber Units$260,000
EOLCapitalizable Network Upgrades & Capitalizable Replacement of EOL Network Hardware$204,000
fiberFiber Build - Berney to Sit-N-Bull$50,000
fiberFiber Distribution Builds$300,000
coreBroadband Node Rework$100,000
coreVEEAM Server$8,000
coreReplacement HVAC units for Broadband Nodes$20,400
coreNetwork Expansion$45,000
coreBroadband Tools$23,850
coreBroadband Test Equipment$14,400
Capital total, 2022$1,080,650
2021 capital total $1,369,100
wirelessWireless/Wifi System Augmentation$150,000
wirelessWireless Subscriber Units$180,000
EOLNetwork Upgrades & Replacement of EOL Network Hardware$190,500
fiberNetwork Expansion - Mini-OTN$20,000
fiberNetwork Expansion - OTN$45,000
fiber100G WDM Upgrade$180,000
fiberFiber Build - Berney to Sit-N-Bull$50,000
fiberOptics$46,550
fiberFiber Distribution Builds$300,000
coreBroadband Node Rework$100,000
coreNetwork Expansion - Pole Mount Mini Node$30,000
coreASA Firewall/VPN concentrator replacement$12,000
coreRectifier Upgrades$25,000
coreReplacement HVAC units for Broadband Nodes$20,000
coreBroadband Tools$5,000
coreBroadband Test Equipment$15,000
Capital total, 2021$1,369,100

Amounts are the budgeted (extended) figure for each line. Lines summing to each year's capital subtotal, which in turn ties to the workbook's stated total. Reproducible: sources/analysis/sources_and_uses.py.

The overhead slice

As investment fell, the cost of running the operation rose.

The same flat envelope spent $588,000 more on operating costs in 2025 than in 2021. Most of it is people: wages and benefits together account for about 60% of the increase. These are legitimate costs — but they are the opposite of investing in the network.

Operating account20212025Change
Wages$578,900$812,439+$233,539
Benefits$251,200$373,700+$122,500
Materials & Supplies$84,200$157,200+$73,000
Maintenance Contracts$101,100$167,000+$65,900
Transportation$18,000$72,826+$54,826
Misc. Contractual$159,200$212,000+$52,800
Travel$12,000$24,000+$12,000
All operating accounts$1,426,400$2,014,701+$588,301

Top movers shown. Wages and benefits are allocated to the telecom budget; the crews are shared with the wider broadband operation.

Same six budgets, opposite directions

Index both lines to 2021 and the choice draws itself: the money didn't run out — it moved.

2021 = 100 2021 2022 2023 2024 2025 2026 payroll & benefits +66% $830K → $1.38M wireless reinvestment −92% $330K → $25.6K

Budgeted wages + benefits vs. the categorized wireless capital lines, from the same Wholesale Telecom Proposed Budget workbooks, indexed to 2021 = 100. Staffing a network is legitimate — the telecom roster grew as fiber expanded — and that's the point: the capacity to spend was there every year. Where it went was a choice.

The obvious question

So did expenses eat it all? No — the $1.2M is right here.

If overhead went up and revenue stayed flat, you'd think there'd be nothing left to invest. But the books say the opposite: the rising overhead was paid for by cutting investment — not by running dry. After covering every operating cost, every other capital project, and its debt, the segment still set money aside every single year. Here is where the upgrade money is.

$1.40M
budgeted surplus set aside, 2021–2025 — after every cost. More than the whole upgrade.
$808,166
audited operating surplus in 2024 alone — ~1.5 years equals the upgrade
−$702K
the cut to investment that funded a +$588K rise in overhead
~$1.2M
the wireless upgrade it declined to fund

So “we can't afford it” isn't what the books show. The money came in, a surplus was set aside, and capital kept flowing — just to fiber and overhead, not the wireless. The $1.2M isn't missing. It's the money the District chose not to point at the network the rural majority depends on. See how this fits the full case →

One honest clarification. The segment's audited net worth also more than doubled — $4,855,541 (2019) to $10,484,682 (2025) — which proves a healthy, growing business with the capacity to invest. But that net worth is mostly value tied up in the fiber network it built, not a pile of idle cash. The affordability case doesn't rest on a cash hoard — it rests on the annual surplus, which by itself covers the upgrade in about a year and a half.
How to read this honestly

What this is — and what it isn't.

Budgeted, not actual

These are the District's proposed budgets — what it planned to spend. Segment-level actuals live in the audited statements (and corroborate the picture: a profitable segment whose net worth doubled). Line-item actuals aren't separately audited.

2026 is set aside

We show 2021–2025 as the “telco-funded” years. The 2026 budget's capital jumps to ~$10.9M, but that's the grant- and loan-funded fiber build — not money netted from telecom — so it would distort the comparison.

One combined fund

Telecom is a segment inside the District's single enterprise fund, not a separate bank account. This maps the segment's budgeted sources and uses; it is not a trace of literal cash, which the District's accounting commingles.

The split is a reading

The Operating / Capital / Debt totals are exact and reconcile to the dollar. The wireless / fiber / core split within capital is our classification of the line descriptions — a careful, conservative reading you can check against the ledger above.

Method & reproducibility: sources/analysis/sources_and_uses.py parses the six budget workbooks and verifies that every year's accounts sum to the workbook's stated total. Underlying files are listed on Sources & Documents.