A bit of unexpected news Friday morning has put PEGASYS officials on the defensive.
Wendy Quarles, director of Enid's public access television system, said she thought the Enid City Commission already had approved PEGASYS' 2003-04 budget, but she learned differently Friday morning from City Manager Bill Gamble.
Gamble told her commissioners would consider implementing a series of cuts to reduce PEGASYS' share of franchise fees paid by Cox Communications.
'I just feel we're having the rug pulled out from under us,' Quarles said. 'It came as a shock to me.'
Mayor Irv Honigsberg insists the discussion isn't intended to harm PEGASYS, only to determine if the community's money is necessary to operate the television system.
'We're not going to hurt PEGASYS,' Honigsberg said. 'This is strictly a financial deal.'
Gamble said commissioners have been looking for ways to lure new businesses and new jobs to Enid, but none of them bear any ill will toward PEGASYS.
'The commission has asked, 'What can we do to find additional resources for economic development?'' Gamble said. 'This is just one of the sources that is out there.'
Gamble said the city's franchise fees generated more than $350,000 last year for PEGASYS, which also has a fund balance of about $430,000.
The commissioners want to figure out how much money really is needed to operate PEGASYS, which broadcasts to Enid residents on three channels.
Commissioner John Hodgden said he supports PEGASYS - which airs meetings of the city commission and Enid Board of Education - but he wonders why it takes so much money to operate it.
He said other city entities have endured belt-tightening in the past few years as Enid dealt with its money woes, but Enid's PEGASYS seems to have been immune.
Commissioner Jerry Erwin, a member of the PEGASYS board, said he doesn't know much about the proposal to cut the television system's income stream.
'Nothing really has been discussed at length,' he said. 'That matter has just been put on the table for consideration.'
Honigsberg said the issue has been blown out of proportion since it came to light last month.
He said city officials are only talking about siphoning off some 'surplus money' from the PEGASYS budget to bolster economic development efforts.
Honigsberg said the discussion is part of the commission's efforts to find the best way to use the taxpayers' money.
Gamble has suggested cutting PEGASYS' share of the franchise fees in half, to 50 percent, to create additional revenue for economic development.
Jon Blankenship, head of the Enid Economic Development Authority, said additional money is needed to put the city in a stronger position for business expansion and job growth by improving its incentive program.
'Incentives are the name of the game these days,' he said. 'Right now, we're not funding local incentives adequately.'
Still, Blankenship stopped short of endorsing any plan to secure additional economic development funds. He said he is just glad the city commission is exploring its options in that regard.
'I think that has to be a top priority,' Blankenship said.
Quarles said she understands the need to fund economic development, but she is concerned the current proposal would make it impossible for PEGASYS to continue operating.
Quarles said the plan to cut PEGASYS' share of the franchise fees over the next five years took into account the possibility that those fees could increase because of Cox's Internet services, but that will not happen. She said the Federal Communications Commission blocked that notion last March.
She said it was the understanding of PEGASYS officials that any cuts would not come for another year, giving them time to find alternate funding sources.
Quarles said she plans to present her arguments against cutting PEGASYS' funding at Tuesday night's study session. She also urged residents to attend that meeting to express their opinions on the issue.
The study session is slated for 5 p.m. Tuesday in the city manager's conference room at the Martin Luther King Jr. Municipal Complex.