ITEM: 12.3 ADMINISTRATION- Clark Arneson, City Manager
Title
APPROVAL OF THE 2013 NORTH METRO TELECOMMUNICATIONS BUDGET
Background
Each year the Cable Commission presents its budget to the member cities for their consideration and approval. The budget must be acted on by October 15th of each year by the member Cities. If no action is taken, the budgets are automatically deemed approved.
The proposed budget for 2013 is $1,066,443. This represents an $11,396 (1.08%) increase over last year's operating budget. The increase is due to a 2% increase for North Metro TV staff, and an increase in benefits to reflect the benefits paid by the Member Cities to their employees for 2012. The remainder of the budget remains at the 2012 levels.
Budgeted capital costs for 2013 are higher than in 2012. Several systems need to be upgraded. The major purchases include switching/routing equipment, studio pedestal tripods, field camera equipment, encoder, and lighting control replacements for the studio. All equipment purchases will maintain the integrity and safety of the current equipment systems while moving the Commission toward the goal of a tapeless and HD environment. The capital budget also includes routine computer/software upgrades, a new fleet vehicle, and the building bond payment. The capital equipment budget totals $446,493. Much of the equipment and vehicle costs will be paid for by drawing upon reserves.
Franchise fees paid to the cities are budgeted at $285,000, which is the same as last year's franchise fee payment. The Commission is recommending that the PEG fee be increased by the allowable amount of ten cents, to $3.16. PEG fee increases are tied to the previous year's consumer price index average, which was 3.2%.
Recommendation
By motion, approve the North Metro Telecommunications budget