Westford CAT Public, Educational, Government Programming Special - PowerPoint PPT Presentation

Westford CAT Public, Educational, Government Programming Special Meeting February 12, 2020 President’s Report 1

Special Meeting Agenda • Open and Welcome • Staff Utilization • Finance and Fundraising • News • Public Comment Period – 60 minutes+ 2

2015-24 Financial Projection Westford CAT 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Revenue 348 520 529 486 515 493 514 523 535 573 Expense 394 496 528 551 536 546 567 592 618 644 Income/Loss (46) 24 1 (65) (21) (53) (53) (69) (82) (71) Cash & Investments 396 445 452 409 445 404 321 238 139 57 Fixed Assets 198 131 128 100 90 140 170 200 203 233 700 Westford CAT 2015 - 2024 Financial Projection 600 500 400 Revenue Expense 300 Cash & Investments Chart Assumptions : • 3% Subscriber Revenue decline • Fundraising 20% of Revenue by 2022 200 • No changes to Staff model • No occupancy changes 100 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 3

Missed Signals Signal #1 Flat revenue and growing expenses should have been a red flag in 2016. Signal #2 After trying and failing with News Director on first attempt, WCAT determined to plow forward with its experiment in July 2016. Meanwhile, Concord Journal Lowell Sun, and Fitchburg Sentinel are making drastic cuts. Signal #3 129 Government channel programs produced in 2016. 2018 CAC proposes mandatory coverage of 40 more. 4

Staff Utilization and Budget Westford CAT 2019 Staff Utilization Study PEG programming ++ Public Educational Government Executive Director 5% Executive Director 5% Executive Director 5% Marketing Outreach Manager 20% Marketing Outreach Manager 10% Marketing Outreach Manager 0% News Director 5% News Director 5% News Director 20% Production Coordinator (PT) 40% Production Coordinator (PT) 5% Production Coordinator (PT) 0% Programming Technician 60% Programming Technician 0% Programming Technician 20% Technical Coordinator 30% Technical Coordinator 10% Technical Coordinator 25% Staff Usage 1.60 Staff Usage 0.35 Staff Usage 0.70 Public $ 86,874 Educational $ 22,143 Government $ 41,680 News Outreach/Engagement Other Executive Director 20% Executive Director 20% Executive Director 45% Marketing Outreach Manager 5% Marketing Outreach Manager 40% Marketing Outreach Manager 25% News Director 60% News Director 10% News Director 0% Production Coordinator (PT) 50% Production Coordinator (PT) 5% Production Coordinator (PT) 0% Programming Technician 20% Programming Technician 0% Programming Technician 0% Technical Coordinator 5% Technical Coordinator 0% Technical Coordinator 30% Staff Usage 1.60 Staff Usage 0.75 Staff Usage 1.00 News $ 97,004 Outreach/Engagement $ 51,401 Other $ 67,014 All figures provided by Executive Director 5

2020 Budgeting Frame *Summer/Fall/Winter 2019 • 2020: WCAT Revenue Forecast $471K; 8% decline from ’19 – Declining Subscriber Revenue, Caution re Investments – 91% of ‘19 income: Cable Subscriber fee revenues. Fundraising 5%. – 2020 Level Total Compensation Expense Budget would yield $50K+ LOSS • 2018-19 Board approved deficit spending – $64K loss in 2018, another significant loss in 2019 projected • WCAT is lean. Non-personnel expenses low. Staff did their part. 2019: 70% Total Compensation, 12% Occupancy, 18% Operational Expenses • Principal 2020 decision was between – Do nothing; BOD considered and rejected – Cut all staff to Part-Time proposed; BOD considered and rejected – Cut Technical staff providing core service; BOD considered and rejected – News Division w/Full-Time professional journalist. Created 2015; not in MOU • News to remain important in PEG programming. Creativity needed. 6

Catastrophic: ‘As is’ 5 Year Forecast Westford CAT - 2020 Budget Level Expenses w No staff changes 5 Year Forecast w 3% Subscriber Revenue Decline Best Case Scenario No Staffing Change/Fundraising 20% of Revenue by 2022 Change/Yr Actual Budget Forecast ----------------------------------> REVENUE 2019 2020 2021 2022 2023 2024 MOU in 2024 Subscriber - Verizon/Comcast 459 445 432 419 406 394 3% decline yr Member Dues-Business 12 15 15 15 15 15 grow to 20K Member Dues-Individual 1 6 6 6 6 6 grow to 6K Production/Media Copies 2 3 3 3 3 3 Sponsors and Donations 4 5 10 15 20 25 grow to 25K Events 3 3 8 10 15 20 Gala proposal Investment Gains/Interest 19 1 0 0 0 0 Market Boom Grants 5 5 30 45 60 100 $5K Incr/yr Other 10 10 10 10 10 10 Verizon Capital Total Revenue 515 493 514 523 535 573 EXPENSES payroll freeze 2019 Salary/Payroll Expense 376 376 387 399 411 423 3% incr/yr Occupancy 62 64 66 68 70 72 3% incr/yr Operational 98 106 114 125 137 149 2% incr/yr +Depn Total Expenses 536 546 567 592 618 644 Income/Loss (21) (53) (53) (69) (82) (71) Cash* 332 311 258 205 136 54 Fixed Assets were $198K in 2015 Capital Investment-Equipment 113 93 63 33 3 3 Current Fixed Assets $90K Less Equipment Purchases (20) (30) (30) (30) Min Purchases to return to 2015 levels Change in Cash & Investments (1) (83) (83) (99) (82) 7

Problematic: 5 Year Forecast w ‘RIF’ Westford CAT - 2020 Budget Effect w Cut to Salaries 5 Year Forecast w Continuing 3% Subscriber Revenue Decline Best Case Scenario No News Director/Fundraising 20% of Revenue by 2022 Change/Yr Actual Budget Forecast ----------------------------------> REVENUE 2019 2020 2021 2022 2023 2024 < MOU in 2024 Subscriber - Verizon/Comcast 459 445 432 419 406 394 3% decline yr Member Dues-Business 12 15 15 15 15 15 grow to 15K Member Dues-Individual 1 6 6 6 6 6 grow to 6K Production/Media Copies 2 3 3 3 3 3 Sponsors and Donations 4 5 10 15 20 25 grow to 25K Events 3 3 8 10 15 20 Gala proposal Investment Gains/Interest 19 1 0 0 0 0 Market Boom Grants 5 5 30 45 60 100 grow to 100K Other 10 10 10 10 10 10 Verizon Capital Total Revenue 515 493 514 523 535 573 EXPENSES payroll freeze 2019 Salary/Payroll Expense 376 320 330 340 350 361 3% incr/yr Occupancy 62 64 66 68 70 72 3% incr/yr Operational 98 106 117 131 146 164 2% incr/yr +Depn Total Expenses 536 490 513 539 566 596 Income/Loss (21) 3 1 (16) (31) (23) Cash* 332 311 314 315 299 269 Fixed Assets were $198K in 2015 Capital Investment Fund-Equipment 113 93 63 33 3 3 Current Fixed Assets $90K Less Equipment Purchases (20) (30) (30) (30) Min Purchases to return to 2015 levels 8 Change in Cash & Investments (1) (27) (29) (46) (31)

“Make it W ork” Westford CAT - 2020 Forecast w Cut to Salaries & Continuing Decline in Subscriber Based Revenue 5 Year Forecast w 3% Subscriber Revenue Decline -5.6% -4.8% Make It WorkScenario $65K Salary cut/Fundraise 20% of Revenue by 2022 Change/Yr Actual Forecast ----------------------------------------------> REVENUE 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 < MOU in 2024 Subscriber - Verizon/Comcast 343 509 511 482 459 445 432 419 406 394 3% yr decline Member Dues-Business 12 15 15 15 15 15 grow to 15K Member Dues-Individual 1 6 6 6 6 6 grow to 6K Production/Media Copies 2 3 3 3 3 3 Sponsors and Donations 4 5 10 15 20 25 grow to 25K Events 3 3 8 10 15 20 Gala proposal Investment Gains/Interest 19 1 0 0 0 0 Grants 5 5 30 45 60 100 grow to 100K Other 5 11 18 4 10 10 10 10 10 10 Verizon Capital Total Revenue 348 520 529 486 515 493 514 523 535 573 EXPENSES Salary/Payroll Expense 254 327 352 378 376 320 330 340 350 361 65K cut, then 3% yr Occupancy 44 54 61 63 62 64 13 13 14 14 Find Donated Space Operational 96 115 115 110 98 106 117 131 146 164 2% incr/yr +Depn Total Expenses 394 496 528 551 536 490 460 485 510 539 Income/Loss (46) 24 1 (65) (21) 3 54 38 25 34 Cash* 350 395 347 312 332 311 314 368 406 402 Capital Investment Fund-Equipment 46 50 105 97 113 93 63 33 3 0 Less Equipment Purchases (20) (30) (30) (30) (3) (30) 9 Change in Cash & Investments (1) (27) 24 8 22 4

Let’s Talk About the News 10,300 Average visits Population of Westford: 24,194 Graph Source: former Executive Director Board of Selectmen packet 1/28 10

WCAT News Trendline WCAT 2016 Annual Report 2017 Annual Report 2018 Annual Report News Programming Total Stories 1048 922 760 Stories, Produced 554 526 480 Stories, Submitted 494 396 280 News Programs 31 45 44 Website total visits Error in tag 126,507 108,030 Website Page Views Error in tag 337,355 292,047 Social Media Followers Facebook WCAT News 1764 1,924 1,985 Twitter WCAT News 561 654 711 Facebook WCAT 491 557 645 Twitter WCAT 316 404 463 News and Email Tagline Initiated in 2019: “ As our funding from cable subscriptions decrease, we need to turn to our viewers and readers for help, especially those who don't subscribe to cable TV. Please consider contributing to WestfordCAT. Support Local TV. ” 11

The $100,000 question 12