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Council hears limits on PEG and child-safety funds; staff says budget items removed can’t be covered
Summary
At an Aug. 4 workshop, staff explained legal restrictions on Public, Educational and Governmental (PEG) cable funds and child-safety funds and told council those accounts cannot be used to restore several items removed from the proposed budget.
Hewitt — City staff told the City Council on Aug. 4 that two restricted revenue accounts — PEG (public, educational and governmental) cable franchise funds and child-safety funds — must be kept in separate accounts and may be spent only for narrowly defined purposes, and therefore cannot be used to replace items recently removed from the proposed fiscal 2025–26 budget.
Assistant City Manager Jim Devlin summarized the rules in a short presentation and repeated multiple times the legal constraints on allowable uses. “They can’t be used for any operational cost of the PEG channel,” Devlin said, and added that PEG revenues are limited to capital costs for PEG facilities, equipment and channel capacity. He described…
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