2013-07-10 CC Packet - Laserfiche WebLink

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• The Capital equipment fund has traditionally been used as a savings account for major equipment system upgrades. However, the cost to upgrade all of our major equipment systems to HD will need to be accomplished at one time, could cost between 1.5 and 2.5 million dollars, and will require bonding. As such, the capital equipment fund has been spent down, and is now intended for emergency replacement of unplanned equipment failures. • The truck replacement fund is to replace the production truck. The current truck is twelve years old. It may need to be replaced in the next few years. The cost of replacement is 175,000- 185,000. • The building repair fund is to cover major costs related to the building such as windows, roof, furnace, AC replacement and painting, carpet replacement etc. o The bond reserve is an amount required by our bond resolution, intended to be the final payment of the bond. o The franchise renewal fund is a reserve fund for the NMTC's upcoming franchise renewal process. Franchise renewal can be very expensive, with the informal negotiation process costing approximately $200,000 across a three year period. Moving to a formal negotiation process is more expensive. These costs include needs assessments, consulting, and legal fees. Budget ■ The recommended operating budget for the organization totals $1,104,001. This number represents a $37,558 (3.5 %) increase over last year's operating budget. The increase can be attributed to salary and benefit increases, the addition of a part-time public access assistant, increased funding for conference attendance, and a website upgrade. There is no increase to any other part of the operating budget. ■ Budgeted equipment purchases for 2014 are $6,855 less than in 2013. The major purchases include motion graphics and replay equipment for the truck, energy efficient LED lights for the studio, HD camera equipment for staff and public departments, master control CG and server upgrades, and a ULive remote video transmission system that can be used to go live over our channels from any location. All equipment purchases will maintain the integrity and safety of our current equipment systems, while moving us toward our goal of a tapeless and HD environment. The capital budget also includes routine computer /software upgrades, parking lot repairs, and the building bond payment of $185,638. The capital equipment budget totals $439,638. A little over half of the equipment will be paid for by drawing upon reserves. ■ Franchise fees paid to the cities are budgeted at $320,000. This is a $35,000 (12.3 %) increase over last year's franchise fee payment. P. 2 11