Title
Communication from the Mayor relative to establishing a separate revenue account for PEG Access and Cable Related Funds and order relative to adoption of MGL Chapter 44 Section 53F3/4
Body
Ordered: That the City adopt Massachusetts General Laws Chapter 44 Section 53F3/4 relative to establishment of a separate revenue fund for PEG Access and Cable Related Funds.
To: Malden City Council
From: Mayor Gary Christenson
Date: August 28, 2015
Re: PEG Access and Cable Related Fund
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The City presently accounts for public, educational and governmental (“PEG”) access fees in a receipts reserved for appropriation fund. Recently, the Massachusetts Department of Revenue’s legal division determined that this was not an appropriate way to account for the franchise fee portion of this arrangement as these revenues are required to be reported in the City’s general fund.
Massachusetts General Laws, c. 44, §53F ¾, effective January 15, 2015, allows municipalities who accept this section to establish a separate revenue account to be known as the PEG Access and Cable Related Fund, into which may be deposited funds received in connection with a municipality’s franchise agreement with a cable operator. Otherwise, as stated in the 2014 Fiscal Year Management Letter from Roselli, Clark & Associates, the City will be forced to transfer those funds related to franchise fees into the general fund and account for the franchise fee portion of the PEG access activity in that fund.
We are requesting that the City Council consider formally accepting MGL c. 44, § 53F ¾ as a local option. The relevant section of the statute is attached.