January 21, 1999

To:	Municipal Officials, Towns of Standish, Buxton, Waterboro, Hollis, Limerick and Limington.
Subj:	Regional Public Access Center Operating Budget
Note:	The following information is provided for town budget preparation purposes only, and as such, reflects only a portion of the documentation required to establish such a facility. The committee recognizes the need for establishing ordinances, contracts, rules of operation, and an acceptable location for a regional Public Access Center. This recommended appropriation is based on receiving an agreement from all six towns to fiscally support a regional public access center beginning in June of 2000. This agreement will be submitted for approval by the towns through their normal voting process. Funding for this regional center may not be utilized until all of the towns have approved the necessary documentation and facility location.

Dear Municipal Officials;

The Saco River Cable Committee at it's November 24th meeting, established a Budget Subcommittee to investigate the requirements for operating a Regional Public Access Television Center to service your town. The results shown below represent a first year budget based on input from the towns of South Portland, Scarborough, Cape Elizabeth, Freeport and Biddeford, all of whom operate such a facility. Adjustments were made to actualize the number of residents being serviced, and to estimate as closely as possible the expected costs for each category listed, assuming a location central to all six towns.

Building Expense (Lease)	$18,000
Wages & Benefits	37,500*
Utilities
Phone	850
Heat	1,200
Power (Includes Air Conditioning)	2,000
Insurance	5,000
Legal/Accounting/Consulting	3,000
Misc. Services (outside labor)	1,500
Music Licensing	400
Office Supplies	800
Mileage	1,000
Postage	300
Internet Service Provider	240
Printing	600
Training	800
Public Access Production Supplies	2,000
Dues & subscriptions	175
Equipment Repair	3,000
Capital Reserve	1,000+
	$79,365

*Assumes 2 persons, 1 @ 20 hrs/wk, $12,000./yr and 1 @ 30 hrs/wk, $18,000./yr
+Additional Capital Reserve for equipment replacement to be accumulated from bi-annual grants from the cable company.

 

The following is a breakdown of the estimated income from each town's Franchise Fee Revenue based on FrontierVision gross revenue estimate of $32.00 average per subscriber per month.*

Town	Number of Subscribers	Estimated Annual Franchise Fee (5% of Gross Revenue)
Standish	1916	$36,787.20
Buxton	1701	32,659.20
Waterboro	1174	22,540.80
Hollis	724	13,900.80
Limerick	326	6,259.20
Limington	273	5,241.60

*Source: FrontierVision Proforma Income and Cash Flow Statement dated March 12, 1998.

 

Annual Communities Contribution from their Franchise Fee Revenue:

Standish	@ 31% =	$24,603.15
Buxton	@ 28% =	22,222.20
Waterboro	@ 20% =	15,873.00
Hollis	@ 12% =	9,523.80
Limerick	@ 05% =	3,968.25
Limington	@ 04% =	3,174.60
		$79,365.00

These figures are based on the percentage of subscribers in each town as compared to all towns combined, and since the cable company uses a similar method to pay each town the franchise fee, this method reflects an equitable method of allocating costs.

The recommendation of the committee to the towns is that this should be treated as an ongoing department expense to support an organization by contract on an annual basis.

The initial capital expense for purchasing equipment and performing any building improvements that may be necessary are part of the capital grant funds that are being held in escrow. A complete capital budget will be developed and submitted for approval as the building location and studio design are finalized. The committee will be working toward this end throughout the coming year. Your comments and suggestions are welcome and appreciated.

Sincerely,

Tony Vigue, Chairman
Saco River Cable Committee

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