City Manager Bill Gamble admits he's posing more questions than giving answers when he considers the possibility of decreasing cable franchise fee funding to PEGASYS by 50 percent over the next five years.
However, based on the last five years, the franchise fee from Cox Communications that goes to PEGASYS has increased about 27 percent, and he wonders "just how big PEGASYS should be."
The issue came up for discussion July 24 during a special Enid City Commission study session.
PEGASYS is Enid's public access television station that has received funds from the franchise for cable television since 1995. According to Gamble, the fund has grown from $280,000 in 1998 to $350,000 in 2003.
The fund has the potential to get another dramatic increase because there is national litigation about whether Internet fees Cox collects should also go to that franchise agreement. Currently, those Internet fees are not included in the franchise agreement.
As the city looks at finding ways to fund economic development initiatives in Enid, city officials are asking whether some of that money in the future can be dedicated toward economic development.
The initial thought of losing 50 percent of the franchise fee over five years is daunting to Wendy Quarles, director of PEGASYS. Yet, she is in the process of trying to determine just what the five-year needs of PEGASYS are going to be so she can better inform the city commission about the impact of the station, which is one of only two public access stations in the state of Oklahoma.
Gamble has suggested during the five years in which city funding to PEGASYS would be reduced, the station could develop partnerships with the private sector or educational institutions to add to its revenue coffers.
Quarles is skeptical the station will be able to raise funds this way.
"We have an online access forum, and I've been asking centers all across the country, what do you suggest for funding opportunities?" Quarles said. "The response has been that others have not been successful at fund raising as far as grants or partnerships. They are really tough because everyone is strapped for funding."
The idea of receiving more money from educational institutions isn't realistic either, at least not at this time, she said. Funding for education is being cut at all levels.
Already, PEGASYS has had its funding for foreign language programs from Enid Public Schools cut by more than half.
She does believe the station can grow its membership base, but memberships fees are only $18 per year for individuals.
The idea of reducing franchise funding doesn't necessarily mean funding for PEGASYS would be half what it is today, Gamble points out. Since franchise fees are growing - along with the potential impact if Internet fees become a part of funding - PEGASYS' budget still could grow.
"What I proposed is not to abandon PEGASYS," Gamble said. "But the franchise fee has grown well ahead of inflation. How big should PEGASYS be? It's like any organization, you're going to spend the money that comes to you. To me, it's a public policy issue."
Quarles said PEGASYS wants to be fair to the community.
"We believe in economic development, but we want to maintain services," she said. "We're really happy with what we've got."
Quarles points out the annual budget for PEGASYS is conservative. The station does not spend all the money it gets from the franchise agreement. Money brought in but not spent is put into the general fund and accrues interest.
That accrual came in handy a couple of years ago when the station upgraded to a digital system. The money that had been accrued paid for the $250,000 comprehensive upgrade to digital tape technology.
The PEGASYS board will meet at noon Tuesday, and Quarles said the topic will be an item for discussion. Also, PEGASYS is planning to do a survey to find out the viewership of the station as it prepares to present information to the city commission in the future.
PEGASYS 2003-04 BUDGETED INCOME
Cox Communications franchise fee $318,500
Tape dubbing 700
Memberships 4,000
School revenue 5,000
Tapes 500
Fund raising 1,250
Interest earnings 6,000
Miscellaneous utilities 600
Miscellaneous 300
TOTAL REVENUE $336,850