MEMORANDUM
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TO: |
Roger L. Stancil, Town Manager |
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FROM: |
Kenneth C. Pennoyer, Business Management Director |
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SUBJECT: |
Budget Ordinance Amendment to Appropriate PEG Funds for Distribution |
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DATE: |
November 24, 2008 |
PURPOSE
The purpose of this memorandum is to recommend enactment of a budget ordinance amendment to appropriate PEG Funds for distribution to The Peoples Channel and the Government Channel.
BACKGROUND AND DISCUSSION
On October 15, 2008 the Council authorized the Town Manager to execute a revised performance agreement with The Peoples Channel that among other things, stipulated that the total amount of PEG Subscriber Fee Revenue collected after July 2008 would be allocated to The Peoples Channel. In addition the Council authorized the Town Manager to distribute Supplemental PEG Support and the PEG Subscriber Fees, accumulated prior to the clarifying legislation, on an equal split between the PEG channels currently supported through cable taxes. This would amount to $109,962 in one-time funding to The Peoples Channel, and $109,962 to the Chapel Hill Government Channel. The funds to be distributed are described in the following table:
|
Distribution of Accumulated PEG Funds |
|
Gov. Channel |
TPC |
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Peg Subscriber Fees collected prior to July 2008 |
$ 179,613 |
|
|
|
Supplemental PEG collected prior to July 2008 |
40,311 |
|
|
|
Total Amount for Distribution: |
219,924 |
|
|
|
Gross Distribution Share |
|
109,662 |
109,662 |
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Less Prior Distributions* |
|
(12,500) |
- |
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Net Distribution Share |
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$ 97,162 |
$ 109,662 |
The Town used $12,500 of Supplemental PEG funds for a grant match to replace video equipment in Council Chambers. By using these funds the Town was able to leverage $37,500 ($12,500 from the Orange Water and Sewer Authority and the Chapel Hill-Carrboro City Schools to match $25,000 in grants from the e-NC Authority).
Chapel Hill TV 18, the government access channel, intends to use the additional funds to broaden its programming to better serve the community. Currently, the channel provides live and rebroadcast meetings of the Chapel Hill Town Council, Orange Water and Sewer Authority and the Chapel Hill-Carrboro City Schools Board of Education. The Communications and Public Affairs Department intends to purchase necessary television equipment and work closely with the faculty and students of the UNC-Chapel Hill School of Journalism to expand programming. Some of the areas of interest include public service announcements about the programs and services of the Town, news and information about issues affecting the community, opportunities for volunteerism and service on Town boards and commissions, coverage of community special events related to local government, and emergency announcements.
A description of the intended use of the additional PEG funds by The Peoples Channel is provided in the attached letter from the Executive Director of The Peoples Channel.
FISCAL NOTE
The PEG Subscriber Fees and Supplemental PEG funds received by the Town must be used to support the certified PEG channels in accordance with the clarifying legislation passed in July of 2008. These funds have been reserved for that purpose in the Town’s fund balance since their receipt.
RECOMMENDATION
That Council enact the attached budget ordinance amendment allowing for the distribution of PEG Funds consistent with allocation plan approved by Council October 15, 2008.
ATTACHMENTS