Fiscal year is from January 1st to December 31st of each year. There have been substantial investments by Fair Family members in time, energy, and donations, up to the present time (Summer-Fall 2014), to bring this project forward. Our next funding requirement is an application to Lane County for an antenna permit. This permit cost will be $2,260.00 and it may take up to 6 months for it to be approved after submission. Donations have already been collected to cover this cost.
REVENUE ANALYSIS:
Membership revenue Census data for the Fern Ridge Communities shows that a conservative estimate of possible listeners within our projected transmission range of 10 miles is a population of at least 9 thousand residents. This is a population that is already familiar with the Oregon Country Fair and many of whom have received the benefit of grant donations and ancillary business opportunities generated by the annual event. This familiarity and goodwill is likely to positively impact the percentage of the local population who will become members and supporters of KOCF radio. Our projected membership levels are at $20, $40, and $100 per year. This is an average of approximately $55 per membership. If we have the support of one percent of the population, that would yield 4,950.00 in individual membership revenue. We used a smaller number in the table above because we are being conservative. Page 1 of 7 Last Edit: 9/17/2014 REVENUE REVENUE 2014 2015 2016 Membership revenue $0.00 $2,250.00 $3,500.00 Underwriting revenue $0.00 $1,500.00 $3,600.00 Grant revenue $0.00 $3,000.00 $4,500.00 Major Donors $3,579.56 $2,500.00 $2,500.00 Directed Donations on Hand $3,325.00 $0.00 $0.00 Fundraising revenue $150.00 $500.00 $3,500.00 Crowdsourcing revenue $0.00 $10,000.00 $4,000.00 Total Revenues >> Total Revenues >> $7,054.56 $19,750.00 $21,600.00 Underwriting revenue There are 92 business members of the Fern Ridge Chamber of Commerce. In looking over the membership list it becomes clear that there are very many local businesses that are not members of the Chamber. Radio spots will be offered for $5 each. Five business underwriters each purchasing 15 spots a month at $5 each would yield $375 per month, or $4,500.00 a year. Or if 30 businesses purchase two spots a month at $5 each, that would yield $300 per month or $3,600.00 a year. These hypotheticals illustrate that business support of KOCF would be both affordable for the businesses and generate significant funds for the station. Grant revenue Because KOCF is owned by the Oregon Country Fair which is a 501(c)(3), there are many grant opportunities to be pursued. We will apply for full or partial funding for the Emergency Alert System (EAS). Major Donors As previously mentioned, we have already had major donors who have contributed to the LPFM Radio project. We have also been able to raise well over $2,000 for the antenna permit application. Once we have been issued the antennae permit we will then be able to conduct our Capital Project campaign. Part of this campaign will include soliciting support from a diverse array of potential donors within the local community as well as the Fair Family. We would only need 8 persons or businesses from the surrounding communities to contribute $250 each to reach a goal of $2,000. We also have a pledge from one Fair Family member of a $1,000 once the project is guaranteed to be tax deductible. Directed Donations On Hand This line item represents directed donations received to date by the Oregon Country Fair for the LPFM project. Fundraising revenue We have exhibited at two events at the time of this report: The Triton Yacht Club Boat Show on August 9 th and the first annual Fern Ridge Kiwanis Motorcycle Show and Shine, August 17th, at the Domaine Meriwether Winery. Funds were raised by selling Kettle Corn. At each event we also exhibited an informational display that helped us to attract attention and establish some important community connections. The equipment use and volunteer time was donated. Other fundraising events being considered are a Barn Dance, auctions and raffles, as well as events that would appeal to the students and the active library community of the Fern Ridge area. Page 2 of 7 Last Edit: 9/17/2014 We have 1,000 I Support KOCF Radio donated bumper stickers, which will also be sold for fundraising. Crowdsourcing revenue The process of soliciting and obtaining contributions from the online community has been shown to be a successful fundraising tool. Fortunately, we have a volunteer to help in our education and implementation of a crowdsourcing campaign. Advertising There will be fees for events, promotional product costs, newspaper/flyer expenses, and other costs associated with the promotion of KOCF. For calendar year 2014, we have purchased banners and bumper stickers which can also be used in ensuing years. Page 3 of 7 Last Edit: 9/17/2014 EXPENSES EXPENSES 2014 2015 2016 Advertising $1,201.56 $500.00 $1,000.00 Capital Equipment $0.00 $9,949.00 $0.00 Content Licenses $0.00 $450.00 $450.00 County Permits $0.00 $3,000.00 $0.00 Depreciation expense $0.00 unknown unknown Office Equipment $0.00 $0.00 $0.00 Insurance $0.00 unknown unknown Maintenance and Repairs $0.00 $200.00 $300.00 Office Supplies $0.00 $150.00 $175.00 Postage $0.00 $150.00 $250.00 Rent $0.00 $0.00 $0.00 Software $0.00 $500.00 $200.00 Engineering Expense $300.00 $3,500.00 $1,500.00 Telephone/Internet/Utilities $0.00 $1,200.00 $1,200.00 Web Hosting/Domains $35.00 $35.00 $35.00 Transmitter Closet $493.10 $0.00 $0.00 Other - (Legal) $2,018.00 $50.00 $50.00 Total Expenses >> Total Expenses >> $4,047.66 $19,684.00 $5,160.00 Capital Equipment Major items in this category include the EAS (Emergency Alert System) at approximately $3,000, the transmitter ($2,880.00), the computer ($1,254.00) and the antenna ($1,000.00). For detailed listing, see appendix I. Content Licenses There will be a yearly expense for content licensing. The two largest are BMI (Broadcast Music Inc.) and ASCAP (American Society of Composers, Authors and Publishers). County Permits The antenna permit cost is $2,260. Seven hundred and forty dollars has been added as an estimate for additional costs related to the permit application. Depreciation Expense The Oregon Country Fair as the license holder will own the equipment, either donated or purchased. OCF accountants will determine if depreciation expense is applicable. Office Equipment Self-explanatory. Insurance Because the Oregon Country Fair will own all licensing, equipment, and property housing the assets of the broadcast station, this expense may already fall within current organizational expenses. Maintenance and Repairs This is our best prediction of what costs may be incurred. Office Supplies & Postage Self-explanatory. Rent We do not anticipate that the start-up radio station will be required to pay rent. However, if in the future KOCF-LP were to have a dedicated area/location within any new structures constructed by the parent organization, an allocation for rent might be appropriate. Page 4 of 7 Last Edit: 9/17/2014 Software Most computers come with an operating system and varied software. We will be buying automation software to transmit directly from the computer to the transmitter. We are also leaning toward the scenario where the computer is located within feet of the transmitter. A Linux solution would be the most cost effective option to meet our needs. Engineering Expenses We have spent $300 for engineering expenses directly related to the Filing of FCC Form 318. There will be start-up engineering costs of preparing the antenna, assembly of capital equipment, personnel training, and going live. Telephone/Internet/Utilities Self-explanatory. Web Hosting Domains Self-explanatory. Transmitter Closet The transmitter will need a secure space with environmental control and electrical power. Fair Family and local community members will donate the labor and materials needed to construct this space. Appendix II has a detailed estimate of materials. This component would take about 3 days to build.
Other To date this line item contains Legal Expenses that have been donated. In the future, it is more likely this expense would probably be tied to the Station Coordinator and other key volunteers. The execution of this line item will depend on what organizational structure is finally decided upon for the radio station. Some possibilities for this structure are: the OCF BOD creates a coordinator position, or elects to have the KOCF Broadcast Station managed similarly to Culture Jam or other projects. STAFF TIME: There has been concern that this project will divert staff time away from their important duties and responsibilities. We do not foresee or believe this to be the case. Fair staff will have to communicate with the station coordinator as they do with other Fair coordinators. There will be an established program committee to determine what the station broadcasts. The staff will not be involved in production, transfer, nor any basic operation of the station. Community involvement will be interfaced with organizational structure of the Radio Station established by the Board of Directors. Finances will have to be funneled through Fair staff until fiscal responsibility is authorized to a KOCF coordinator. Accounting will be handled by the OCF Controllers and we anticipate a positive cash flow. Page 5 of 7 Last Edit: 9/17/2014 In Summation: This project will be a positive addition for the Fair, its mission and goals, and it will further improve our relationship with the Fern Ridge Community. If for some reason this project results in an unforeseen drain upon the Oregon Country Fair staff and resources, it can be terminated and the FCC Franchise relinquished. Thank you for your attention. OCF - LPFM Task Force APPENDIX I - Capital Equipment and Equipment List Page 6 of 7 Last Edit: 9/17/2014 Row Quantity Description Price Notes 1 1 Antenna $1,000.00 2 1 Type n male plugs and grounding Kits $5.00 each 3 1 Transmitter $2,880.00 $250 Labor 4 1 Stereo compressor $300.00 5 1 Coaxial line protector $5.00 Dave Akins has item 6 1 EAS System (Sage 3644 recommended by Ichabod at $2,200) $3,000.00 Approximate - includes receivers and internet and keyboard below. 7 1 Internet connection and keyboard Part of EAS 8 2 AM/FM Receivers Part of EAS Range $110.00 - $500.00 9 1 Digital Decoder $55.00 10 1 24 inch Monitor $170.00 May or may not be needed for start-up 11 2 Mac Mini - Extra RAM $1,254.00 12 1 One TB Hard Drive $160.00 13 1 Remote XMTR Monitoring/Test/Control Equipment $1,120.00 Total >> $9,949.00 APPENDIX II- Transmitter Closet detail Row Quantity Description Unit Cost Sub Total 1 30 2 x 4 x 96 $3.00 $90.00 2 2 2 x 4 x 16 $12.00 $24.00 3 10 1/2 x 4 x 8 drywall $10.25 $102.50 4 1 Tub Drywall Compound $5.50 $5.50 5 1 Roll Drywall Tape $7.30 $7.30 6 1 3 lb Box #6 1 1/4 drywall screws $22.00 $22.00 7 4 Electrical Box $2.25 $9.00 8 4 Duplex Outlet $1.20 $4.80 9 1 100 indoor Romex 12-2 $48.00 $48.00 10 4 9-Pack R-19 Fiberglass Insulation (7 ft 9 in Length X 15 in Wide X 6 1/2 in Deep) $45.00 $180.00 Total >> $493.10 Page 7 of 7 Last Edit: 9/17/2014