Cut in city funding has PEGASYS eyeing its budget

April 28, 2008 11:44 pm

— PEGASYS historically has been one of the city’s most self-sufficient agencies, at least until it fell victim to city budget cuts this fiscal year.
Last June, the city of Enid cut $100,000 from the PEGASYS budget as it slashed a number of city agencies. City officials made $1.15 million in budget cuts to help make up money from the general fund that was spent to rebuild the bridge on West Ran-dolph that collapsed last year. They also were concerned the general fund balance had been falling in recent years to a balance of $7.5 million, which includes a $6 million emergency fund.
Officials with PEGASYS, the city’s public-access television station, were criticized for having $400,000 in reserve and investing some of those funds through an agency account with Enid Community Foundation. City officials said PEGASYS should use its reserve to make up the difference in the amount the city cut.
Executive Director Wendy Quarles said, though, the reserve fund showed PEGASYS is fiscally responsible by preserving its funds so it does not have to continually go to the city for additional money.
PEGASYS officials intended for the surplus to be used to make a series of equipment updates, Quarles said, and for emergencies to replace costly equipment. During last spring’s city budget hearings, PEGASYS learned it would have to use up its savings, then come to the city for assistance if funding was needed.
“We’re probably going to be $60,000 to $80,000 in the red as far as using up our savings,” Quarles said. “We have three months to go, and it’s hard to predict how much operations and capital expenditures will eat into our savings.”
The biggest capital expense has been a series of planned upgrades mostly to make it easier for PEGASYS community producers to use the equipment.
“We’re going ahead with those, we have equipment that’s getting outdated and needing upgraded. It will be for the community producers, mostly for their use, to repair and replace outdated equipment,” she said.
Quarles said she has no idea about what will happen in the future. All upgrades PEGASYS staff makes will be high definition-compatible when that becomes mandatory for television broadcasts in February 2009. She said it is the most cost-effective and wisest use of money.
“We’re also being very cautious and responsible about the purchases we make,” he said.
PEGASYS staff and board members have stated they would rather maintain their finances as they go and not burden the city. If they were allowed to maintain their surplus they would not have to do that, but Quarles said she is willing to work with the city.
“At this rate we could be looking at being in the red in a couple of years. It will take two or three years to run out and be at zero savings. We could be asking for money in two or three years at this rate,” she said. “You never know what equipment needs will be or if we will have some emergency.”
City Manager Eric Benson said Monday the budget cycle is coming up again this spring. He said PEGASYS officials probably will come to the city like other agencies to plead their case for funding, and the city commission will make the final determination.
“We’ll be taking up the budget again in the next 30 days, and we’re now formulating the budget for council consideration,” he said.