KCTS rebounds, turns in a surplus

Seattle's public-television station this week ended its fiscal year in the black for the first time in five years, with credit being given to a substantial loan, strong member support and better management.

KCTS, which last year laid off more than 24 staff members and as recently as March was mired in more than $7 million of debt, now shows a budget surplus between $200,000 and $500,000, said President and Chief Executive Bill Mohler.

"Now we have some history that we can do this, and that needs to continue in our future," said Mohler, who Monday sent an e-mail to supporters expressing his "delight" with the station's progress. "Probably the greatest accomplishment is establishing some level of predictability. We can put together a plan and predict where we should end up, and get there."

Mohler credits the turnaround to "a great staff and a very committed board," a $7 million loan from an unnamed local source and member donations, which are up 12 to 14 percent this year.

Others are quick to praise Mohler, who came out of retirement about a year ago to lead the beleaguered station after the hasty exit of longtime President Burnill "Burnie" Clark. Mohler's interim presidency became permanent in December.

"This didn't just happen. It needed the catalyst to make it happen, and I think Bill was it," said Jim Costello, chairman of the station's finance committee. "I think morale at the station has significantly improved, and the response from the community has just been outstanding, as evidenced by the dramatic increase in our subscription revenue."

Mohler had also rejuvenated the struggling KBTC-TV in Tacoma in the 1990s while president of Bates Technical College.

KCTS' approximately $7.2 million of debt — about half of which was owed to PBS in back dues — had mounted over a decade of operating losses. Clark retired from the station in April 2003, one day before The Seattle Times reported the station's financial woes.

Mohler at one time had seriously considered selling the station's Seattle Center headquarters to manage its debt. He instead helped negotiate a substantial loan from a longtime KCTS supporter in April.

Now, the station is preparing to celebrate its 50th year on the air in December. "Without the $7 million loan, I don't know that we'd even be in business," Mohler said.

Pamela Sitt: 206-464-2376 or psitt@seattletimes.com