According to Jim Boldt at Kitsap Connection
Q: How are the KPUD wireless broadband technology pilot programs funded?
A: No Kitsap Public Utility District water utility funds are used in the PUD’s telecommunications operations. Since 2000, KPUD has used a small property tax and federal funds to construct it’s broadband fiber-optic system. The backbone of over 150 miles of world-class, high-speed cable is used by, and connected to most public agencies in the county, and used as the trunk system for some of the area’s telecommunications companies, who in turn, retail services to their end users.