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Communications committee warns franchise fee decline threatens department operations
Summary
The communications committee reported a projected revenue shortfall that would leave the department with roughly $5,000 for operations next year under current funding sources; committee members urged the council and staff to identify sustainable funding alternatives.
The city’s communications committee warned the Common Council on Tuesday that declining cable franchise fees are leaving the department with an unsustainable budget model and urged the council to consider additional funding sources.
Evan Dayton, chairman of the communications committee, told council that franchise fees from cable companies (Spectrum and TDS) are the department’s primary revenue source and are shrinking as residents move to streaming services that do not pay franchise fees under current state law. “Franchise fees are the primary source of revenue for, the communications department and are rapidly declining as residents move away from cable TV,” Dayton said.
Committee figures presented to council showed projected 2025 revenue of about $206,000 from franchise fees and state aid, but actual receipts year‑to‑date were roughly $133,000. Dayton said that, after wages and benefits for two staff members, the department faces an estimated operations budget for 2026 of about $5,000 unless new revenue is found. The committee reported program cuts this year, including shifting school coverage to existing staff, reducing professional production time and cancelling a low‑power FM radio project.
Why it matters: communications provides public information, meeting coverage and marketing that the city’s strategy and transparency rely on. Staff and committee members said a shortfall will diminish services unless the council allocates general fund support or the department secures sponsorships and alternate revenue.
Council next steps: council members and staff discussed a short‑term plan that could include a limited general fund contribution in the 2026 budget and a longer public discussion during strategic planning about the department’s scope and sustainable financing.
The committee said it will continue seeking sponsor support and other one‑time revenues while staff and council review longer‑term budget options.
