Clearwater County Financial Research Report compiled by Perplexity AI

 Clearwater County Broadband Project 

Financial Research Report 

April 24, 2026 

This report compiles publicly available financial information on the Clearwater County Open Access Network (CAN) broadband project, drawing from federal grant records, county budget documents, audited financial statements, council meeting agendas, and procurement records.

Section 1: Project Overview 

The project is a county-owned open-access fibre-to-the-home (FTTH) network serving rural Clearwater County, Alberta. Originally scoped at approximately $20 million in 2020, it has grown to a total gross program cost of approximately $140 million, with roughly $88 million covered by federal and provincial grants, leaving a net county cost of approximately $52 million. Construction is targeted for completion by March 31, 2027. The network covers 4,399 homes across 7,227 total county residences — representing 61% of all residences in the county. 

Section 2: Total Program Cost Summary 

The following tables summarize the total program cost broken down by component and by spending period. 

Program Component	Gross Cost	Grant Funding	Net Cost to County
Core Backbone	$18,261,203	($4,438,213)	$13,822,990
Fibre-to-the-Home (FTTH)	$121,565,411	($83,361,311)	$38,204,100
Grand Total	~$140,000,000	~($88,000,000)	~$52,000,000

Note: The widely reported $85.1M figure refers only to the remaining FTTH costs to complete, not the total program cost. 

Spending Timeline 

Period	Gross Spent/Forecast	Net to County
Spent to end of 2025	$54,664,641	$33,990,260
2026 forecast	$74,938,250	$15,480,899
2027 forecast	$10,223,723	$2,555,931
Total to Complete	$85,161,973	$18,036,830

Section 3: Federal & Provincial Grant Funding 

Clearwater County secured seven grants through the federal Universal Broadband Fund (UBF), administered by Innovation, Science and Economic Development (ISED) Canada, with matching support from the Government of Alberta. Grants cover up to 75% of eligible project costs. Source: ISED Selected UBF Projects page.

Grant ID	Communities Served	HH	Combined Grant  Amount
RRS-02668	Nordegg	242	$3,781,303
UBF-03250	Martins Trailer Court, Ferrier Acres, Ullin, Crimson Lake	337	$2,332,741
UBF-07119	Chedderville, Burnstick Lake, Butte, Caroline, Crammond	873	$32,332,828
UBF-07121	Codner	315	$13,861,734
UBF-07122	Carlos	160	$9,256,528
UBF-07123	Nordegg, Saunders, Horburg	299	$4,944,592
UBFP-99263	Alhambra, Stauffer, Dovercourt, Chedderville, Burnstick Lake, Crammond, James River Bridge, Echo Valley, Bingley, Bearberry	630	$20,567,888
TOTAL		2,856	~$87,077,614

Note: Grant amounts shown are combined federal + provincial totals as listed on the ISED website. The confirmed federal-only agreement value for UBF-07119 (via the Open Government portal) is $16,166,414, indicating approximately a 50/50 federal/provincial split. The 2024 audited financial statements confirm the broadband restricted fund grew from $240,822 (2023) to $20,727,140 (2024), confirming grant tranches are actively flowing.

Section 4: Committed Construction Contracts 

Source: February 13, 2026 Broadband Committee Strategic Options Review (Arcadis/Pardal Ventures). 

Project	Homes  Passable	Prime Contractor Value	Inventory
UBF-03250	442	$5,768,778	—
UBF-07119 (Caroline corridor)	1,379	$28,953,112	—
UBF-07121	530	$9,216,047	—
UBF-07122	318	$11,085,870	$6,626,200
UBF-07123	454	$4,728,336	—
Rocky East (no grant)	284	$5,457,459	—
UBFP-99263	992	$0 (not yet tendered)	—
TOTAL	4,399	$65,209,602	$6,626,200

Note: $71,835,802 total committed (84% of FTTH completion cost) as of end of 2025. 

County Net Cost per Home by Area 

Project Area	County Net Cost	Per Home
UBF-03250	$1,415,312	$3,202
UBF-07119 (Caroline corridor)	$13,080,163	$9,485
UBF-07121	$5,608,505	$10,582
UBF-07122	$3,639,543	$11,445
UBF-07123	$2,114,131	$4,657
Rocky East	$5,184,234	$18,254
UBFP-99263	$7,162,212	$7,220
Average		$8,685/home

Section 5: Revenue Projections & Break-Even Analysis

Revenue is generated through ISP access fees paid by retail providers using the open-access network infrastructure. 

Year	Projected Annual Revenue
2024	$26,117
2025	$106,627
2026	$528,867
2027	$1,116,175
2028	$1,933,840
2029	$2,288,822

Key Metrics 

• Operating break-even: 2,562 homes (58% take-up rate), targeted 2029–2030 • Current sales close ratio: 73% 

• Homes signed up as of Feb 13, 2026: 572 (exceeding 2.5-month forecast by 500+) 

• Fibre Connect installation fee: $399 for first 100m + $14/additional metre (introductory); $1,500 after construction 

• Operating deficit 2026: $1,690,308 (~$37.62/property/year) 

• Forecast operating surplus 2030: $122,200 (~$2.05/property/year) 

• Estimated property value uplift from fibre: ~$11,748/home (~3%)Section 6: Strategic Options Review (Feb 13, 2026) 

Section 6: Strategic Options Review (Feb 13, 2026)

The Arcadis/Pardal Ventures review presented five options plus a baseline. Council voted 6-1 to continue (Option Base) on February 24, 2026, approving a $72 million budget adjustment funded by grant revenue and restricted surplus transfers. 

Option	Description	Additional Capital	Key Risk	Outcome
Base	Finish current program	$18M net	Low	Most stable; break-even  ~2029
1	Full countywide buildout (no grants)	$18M + $88M	Medium	EBITDA positive 2030; ~200 yr payback
2	Pause construction	$21M–$64M penalty	Very High	Triggers grant default; worse later
3	High-density areas only	$8.6M + $76M grant loss	High	Never breaks even
4	Sell existing  infrastructure	Loss on existing  investment	Medium	Market value $8.1M–$16M (2027–2032)
5	Stop UBFP-99263 only	$8M over 7 yrs +  $20.6M grant loss	Medium/Hig  h	Never breaks even
Stop  entirely	Cancel whole program	—	Very High	$21.8M–$64.8M termination cost

Termination Cost Breakdown (if stopped entirely) 

Item	Cost
Termination — Construction & Operations Contracts	$24M to over $60M
Additional Termination Liability & Litigation	$4.2M to $7.7M
Less: Potential Sale Value of Infrastructure	($2.9M to $6.4M)
Net Termination Cost	$21.8M to over $64.8M

Section 7: Budget History

Budget Year	Broadband Capital Allocation	Notes
2025 approved (Dec 2024)	$43,675,676	Major FTTH construction ramp-up
2026 initial (Dec 2025)	$2,828,601	Frozen pending project decision
2026 revised (Feb 2026)	~$72,000,000	Budget adjustment approved Feb 24, 2026

2026 Overall County Budget Context

Item	Amount
Total operating revenues	$76,861,516
Total operating expenses (excl. amortization)	$58,866,409
Capital revenues	$8,572,521
Capital expenditures	$40,311,347
Expected tax increase	~5%

Section 8: Audited Financial Statements — Broadband Figures 

Source: 2024 Clearwater County Audited Financial Statements (Metrix Group LLP, opinion date April 22, 2025). 

Broadband Restricted Fund 

Year	Broadband Restricted Fund Balance
2023	$240,822
2024	$20,727,140
Change	+$20,486,318

This ~$20.5M increase in one year reflects federal/provincial grant tranches received and ring-fenced. Broadband is the single largest restricted surplus fund in the county as of year-end 2024. 

Overall County Financial Health (2024 Audited) 

Item	2024	2023
Cash & equivalents	$55,733,623	$52,563,032
Investments	$50,032,550	$51,979,710
Net financial assets	$95,912,740	$92,316,214
Tangible capital assets	$392,229,299	$391,152,180
Accumulated surplus	$494,576,316	$490,153,507
Total revenues	$68,205,181	$64,020,027
Total expenses	$69,943,210	$63,617,461

Section 9: Procurement Records 

Source: Clearwater County Tenders & Contracts page.

RFP	Scope	Awarded To
IT-02/2024	Backbone Construction — Rocky East Route	Canadian Fiber Optics Corporation
BB01-2024	FTTH Design & Civil Construction (UBF-03250 + UBF-07123 East)	ROHL Global Networks Inc.
BB02-2024	FTTH Design & Civil Construction (UBF-07123 West)	ROHL Global Networks Inc.

 

RFP	Scope	Awarded To
BB04-2024	FTTH Design & Civil Construction (UBF-07119)	ROHL Global Networks Inc.
BB05-2024	FTTH Cable Installation, Splicing & Testing  (UBF-03250 + UBF-07123)	TRAP Specialized Services
BB06-2025	FTTH Design & Civil Construction (UBF-07121)	Canadian Fiber Optics Corporation
BB07-2025	FTTH Design & Civil Construction (UBF-07122)	Canadian Western Infrastructure Corp.
BB08-2025	Fibre Drop Installation	ATI Telecom International
BB09-2025	FTTH Cable Installation, Splicing & Testing  (UBF-07119)	TRAP Specialized Services
BB10-2025	FTTH Cable Installation, Splicing & Testing  (UBF-07121 + UBF-07122)	TRAP Specialized Services
BB11-2025	Open-Access Network Operations & Support Services	No Award

Notable: BB11-2025 returned no award. Under the UBF grant conditions, the county must own and operate the network for at least 5 years post-construction (until ~2032) before any sale is possible. No confirmed operator contract is in place for the expanded FTTH network as of April 2026.

Section 10: Key Observations & Flags 

1. True program cost is ~$140M, not $85.1M. The $85.1M figure reported in media and council discussions refers only to the remaining FTTH construction cost. The full program including backbone is ~$140M gross ($52M net to the county after grants). 

2. Grants are real and flowing. The broadband restricted fund in the 2024 audited financial statements jumped from $240K to $20.7M — confirming active grant disbursement, not just announcements. 

3. UBF-07119 is the largest single contract and covers the Caroline/Burnstick Lake/Crammond corridor — 1,379 homes at $28.9M in committed construction contracts and $13.1M net to the county ($9,485/home). 

4. Cancellation is more expensive than completion under every modeled scenario. Net termination cost ranges from $21.8M to over $64.8M — versus $18M to complete. 

5. No network operator contract is in place. BB11-2025 (Open-Access Network Operations) returned no award. The county will be required to self-operate until at least 2032 under UBF grant conditions. 

6. Revenue uptake is early but tracking above forecast. 572 homes signed up after 2.5 months, exceeding forecast by 500+. The 73% close ratio is strong, but 2,562 homes must be connected to break even operationally. 

7. Transparency concerns persist. No publicly available document breaks down the $140M program by line item. The tenders page and the Feb 13 strategic options review are the closest available to a granular financial record.

Sources 

1. ISED Canada — Selected Universal Broadband Fund Projects https://ised-isde.canada.ca/site/high-speed-inter net-canada/en/universal-broadband-fund/selected-universal-broadband-fund-projects 

2. Clearwater County — Budget Page https://www.clearwatercounty.ca/p/budget 

3. Clearwater County — Tenders & Contracts https://www.clearwatercounty.ca/p/tenders-contracts 

4. Clearwater County — Broadband Project Background 

https://www.clearwatercounty.ca/p/broadband-background 

5. Clearwater County — Dec 19, 2025 Budget News Release https://www.clearwatercounty.ca/p/news-releases 

6. Broadband Committee Meeting — Feb 13, 2026 (Agenda PDF, CivicWeb) https://clearwatercounty.civicweb.ne t/filepro/documents/66090?handle=CFA16849BD104DA9AFCB7B93AD4B1C97 

7. Broadband Committee Meeting — Feb 13, 2026 (YouTube) https://www.youtube.com/watch?v=kiYNXZzUGCk 

8. 94.5 Rewind Radio — Feb 17, 2026 

https://945rewindradio.ca/2026/02/17/clearwater-county-to-continue-broadband-project-despite-opposition/ 

9. 94.5 Rewind Radio — Feb 25, 2026 https://945rewindradio.ca/2026/02/25/clearwater-county-formalizes-broa dband-go-ahead-councillors-express-displeasure/ 

10. CBC — Rural Broadband Alberta https://www.cbc.ca/news/canada/edmonton/federal-provincial-rural-broadb and-expansion-rolling-out-slowly-in-alberta-1.7317901 

11. Clearwater County 2025 Budget News Release (PDF) https://www.clearwatercounty.ca/Home/DownloadDocu ment?docId=794cb8a8-4976-4508-a87f-bbd24445f474 

12. Clearwater County 2024 Audited Financial Statements (PDF) 

https://www.clearwatercounty.ca/Home/DownloadDocument?docId=6ed85dfe-860d-4bdb-808d-13c5c6a7669e 

13. Arcadis — Woven Selected for Clearwater County Broadband 

https://www.arcadis.com/en/news/global/2024/7/woven-selected-to-design-broadband-network

14. CWCBB Marketplace About https://market.cwcbb.ca/cwcbb/Show/About

Page 11 — Clearwater County Broadband Financial Report

IN THE NEWS

By Marianne Cole

MDP Review   A review of Section 10, Subdivision of Land is currently underway.   

At their February 24, 2026 meeting, County Council granted First Reading to amend specific clauses in this section of the Municipal Development Plan and proceed to a Public Hearing.  The most concerning clauses deal with:

• Clause 10.2.2, the number of residential subdivisions off a quarter.   The proposed new clause states, “Clearwater County may approve one additional subdivision in a quarter section for a residential parcel from the largest agricultural parcel within a previously subdivided quarter section that does not already contain a residential subdivision.” (Underlining for emphasis, not part of the clause.)  
• Clause 10.2.3 re fragmented parcel. This clause re-instates the option of allowing an additional subdivision on a fragmented parcel.  It was taken out of the 2023 MDP.
• Deletion of Clause 10.2.8, re small agricultural operations on residential parcels.   The current clause allows for small agricultural holdings as a discretionary use in Country Residential Agriculture (CRA) districts.  Its removal brings up a concern that such activities may not be allowed.

For more information and a complete comparison of current and proposed clauses you can google Clearwater County Taxpayers’ Association, go on the County’s website, or call the county’s Planning Department to request a copy of the current clauses and their proposed changes.

Above all, it is absolutely crucial that the voice of the people is heard on this matter.  We encourage you to attend the Public Hearing on April 14, 2026 at 10:00AM at Council Chambers in Rocky.

Area Structure Plan Reviews  

•   As you may, or may not, have seen in last week’s Western Star, the ASP’s for the Alexo-Saunders and Whitegoat Lakes (Lake Abraham) areas are again being reviewed.  These documents were recently reviewed and adopted in July of 2025 by our previous council.

Concern has since arisen regarding a lack of public engagement during that review.  People are particularly concerned about the possible increase in proposed/potential “facility cells”.  These are “land areas suitable for commercial recreation development in the form of fixed roof accommodations and campgrounds as well as related commercial facilities and public services.”

People are concerned that this could result in a significant increase in tourist traffic and its resulting impact on public services such as waste/garbage disposal, fire protection, first responder attendance, and policing.  Above all, they are concerned about environmental impacts along with their ability to enjoy a pristine mountain area.

As per information in last week’s Western Star, public engagement meetings are planned for:  

Caroline Hub, Tuesday, March 31; Condor Community Hall,Wednesday, April 1; Rocky Rec. Center, Subway Room, April 7 and Nordegg Community Hall, April 10.  All meetings are at 3:00 – 5:00PM and 6:00-8:00PM at each location.  There is also a virtual meeting on Wednesday, April 8 at 6:00-8:00PM with pre-registration required.

Once again, special kudos to our current Council for their desire to hear from their residents and address their concerns. 

We encourage you to contact them with your opinions and above all, attend one of the above meetings on this matter.  

April Guest Speakers   

• Mark Dorin, a lawyer from Red Deer and a strong advocate for landowner rights, along with MLA Jason Nixon, will be guest speakers at the monthly CCTA meeting on Wednesday, April 8, 2026 at 7:30PM at the Leslieville Elks Hall.  They will be addressing Alberta’s Mature Asset Strategy along with other matters related to the oil/gas industry that impact landowner rights. Please come to hear their information, ask questions, and express your opinion.

Up-coming Meetings: 

Wednesday, April 8, 2026 and Wednesday, May 13, 2026.  Both meetings at 7:30 PM at the Leslieville Elks Hall.

 “If you see a rabbit laying little brown eggs, don’t eat them.  They aren’t chocolate.”  Unknown.

“Easter is the only time of the year it’s safe to put all your eggs in one basket.”  Evan Esar