There are a variety of options for funding an infrastructure project like this, but we believe a Utilities User Tax may be most appropriate.
In 2004 our committee conducted a town-wide survey (performed by Godbe Research) and found that 40% of the town would support undergrounding at the $52M price tag, funded by a 40 year bond.
Since then we learned undergrounding could also be funded from a Utilities User Tax (UUT), a flat tax on local utility bills administered by the utilities. The UUT might prove advantageous over other funding methods since those who use the utilities the most (big energy, cable & phone bills) would pay more, and there are exclusions for low income residents. In our Godbe survey we found the highest opposition was from longer-term residents -- many of whom have low bills -- while the broadest support came from newer residents. Given the estimated cost above and our understanding of utility revenues we believe a 7.5% UUT could pay for town undergrounding in as little as 15 years. (For comparison, Palo Alto is 50 years into their undergrounding project, and has many years to go.)