Wilmington CBT commissioners review CATV fund shortfall; staff to meet with DETV on alternatives

Michelle, a city staff member overseeing the CATV fund presentation, told the Wilmington Cable, Video & Telecommunications Commission on Feb. 18 that the commission faces a multi‑year shortfall and must consider options to preserve the fund balance.

“Right now, we have $2,300,000 in our savings fund for the CATV fund,” Michelle said, and then outlined projected five‑year figures presented to the commission: projected franchise fees of roughly $3.5 million over five years; expected WITN costs of about $5.6 million over five years; and current third‑party operator (TPO) costs and projections that create a funding gap the staff calculated as roughly $2.1 million over five years. Michelle said the current five‑year projections would require drawing on the $2.3 million reserve each year.

To reduce the projected draw on reserves, staff presented four scenarios: 1) eliminate city payments for the TPO (leaving only WITN costs), which staff said would reduce reserve use to approximately $1.3 million over five years; 2) continue a TPO arrangement but charge the TPO a usage fee (staff modeled $30,000 per year, which would reduce the five‑year reserve draw to about $1.24 million to $1.5 million depending on assumptions); 3) have the city pay 50% of the current lease but no utilities or equipment, which staff estimated would draw about $1.7 million; and 4) have the city pay 25% of the lease (no utilities or equipment), which staff estimated would draw about $1.6 million. Staff cautioned these are scenarios for discussion rather than final proposals.

Commissioners asked for details about timing and financial exposure. Commissioner Dan Walker clarified that the TPO agreement and a city lease expire at the end of March, and Michelle confirmed both agreements expire March 30–31, 2025, so short‑term decisions would shape the current fiscal year budget and reserve use. Walker and other commissioners pressed whether the city had discussed scenarios with the TPO and whether the TPO could afford any fee or arrangement; Michelle said staff had met with the TPO but had not discussed those specific scenarios and recommended follow‑up conversations.

April Johnson, director of operations for DETV, said DETV would need time to review the scenarios. “Two of the scenarios could fit for DETV, but I think that we would like an opportunity to discuss what this would look like for us and how it would impact us financially,” she said. Ivan Thomas, identified in the meeting as a DETV representative, described steps DETV has taken to diversify revenue, including creating a for‑profit arm called DTV Media Group and pursuing advertising and sponsored content to support ongoing operations.

Commissioners raised options discussed by DETV in the meeting, including the possibility that DETV could assume some operational responsibilities for WITN (the government channel) or repurpose staff, though commissioners and staff noted legal and regulatory constraints separating PEG (public, educational, government) channel obligations from commercial activities. Councilwoman/Commissioner Bracey asked commissioners to balance the value DETV provides to Wilmington residents—local programming in Spanish and other services—against the need for fiscal responsibility.

Michelle recommended scheduling a follow‑up meeting and a smaller staff‑TPO meeting within the next two to three weeks to refine options before lease and TPO expirations. Commissioners agreed to pursue that timeline; no formal action to adopt any scenario was taken at the Feb. 18 meeting.

Votes taken at the meeting were procedural: the commission adopted the Jan. 17 minutes by voice vote (all in favor) at the start of the session and later voted to adjourn.

Staff and DETV agreed to meet to evaluate which scenario(s) are feasible and to return to the CBT commission with recommendations.