Providence's fiber network made money but its cash fell by $983,223

Providence's fiber internet fund earned more than it spent to operate in fiscal 2025. Spending on construction and debt reduced its cash by nearly $1 million, according to the city's audit. ^[1]

Operating results

The fiber network fund reported $840,193 in charges for service and $463,282 in operating expenses, including $141,941 in depreciation, for operating income of $376,911. ^[1]

After $43,878 in interest income and $178,387 in interest on debt, net position rose by $242,402 to $1,382,987. The unrestricted portion was $593,300. ^[1]

The audit lists the fund's expenses as $213,365 in the prior year. Its capital asset table shows a fiber system of $8,186,392 at June 30, 2025, and none a year earlier. ^[1]

Cash

Operating activities provided $555,903 in cash. The fund paid $1,162,929 for capital assets, $240,000 in bond principal and $180,075 in interest. ^[1]

Cash fell by $983,223, from $1,647,157 to $663,934. ^[1]

The bonds

The audit's debt note lists 2021 franchise and sales tax revenue bonds with an original principal of $7,750,000 at 3.00%, maturing March 1, 2048. The balance was $7,510,000 at June 30, 2025. ^[1]

The fund's balance sheet lists $240,000 of the bonds as the current portion and $7,270,000 as long-term. The debt note lists $245,000 due within one year. ^[1]

The audit says all loans are secured by their applicable revenue stream or franchise and sales tax revenues. ^[1]

What city officials have said

At the Dec. 17, 2025 meeting, auditor Mike Miles said the fiber fund was now cash-flow positive after construction of the network. City Manager Ryan Snow reported a record 1,890 fiber connections. ^[2]

At the May 20, 2026 meeting, a resident asked about cost increases in the fiber full cost accounting report. Snow said they came from the full buildout being placed in service, which triggered full depreciation, from the allocation of billing costs and from a new backhaul circuit added for redundancy. ^[4]

On Aug. 19, 2026, Snow said the network would reach its 2,000th customer that week, about 75% of the expected serviceable addresses in the city. ^[3]