*Approve the Mt. Hood Cable Regulatory Commission FY 2025-26 Fund Budget​

​​The City of Portland is a party to an intergovernmental agreement with Multnomah County and the cities of Gresham, Fairview, Troutdale, and Wood Village, dated December 24, 1992, as modified by subsequent amendments, creating the Mt. Hood Cable Regulatory Commission (“MHCRC”) for the purposes of:Advocating for and protecting the public interest in the regulation and development of communications systems;Monitoring and helping resolve subscribers' concerns; andFacilitating the planning and implementation of community uses of communications technologies.The MHCRC contracts for staff and other support services through a separate services agreement with the City of Portland. The MHCRC funds an equivalent of 4.35 full-time equivalent (FTE) staff positions in the City’s Bureau of Planning and Sustainability, plus related materials, services, financial and administrative costs.The Intergovernmental Agreement (“IGA”) establishes the responsibilities and powers of the MHCRC, including the process for member jurisdictions’ approval of the MHCRC’s annual budget. Under the terms of the IGA:The MHCRC transmits its adopted fiscal year budget to the jurisdictions for approval; andEach jurisdiction annually contributes funding to the operations of the MHCRC as determined during the annual budget process through a cost allocation methodology.The MHCRC adopted the FY 2025-26 Fund Budget, FY 2025-26 Goals and Objectives (respectively document Exhibit A) at its May 19, 2025, Regular Meeting. About 35% of the MHCRC operating budget is funded by the jurisdictions’ allocations and the remaining by other MHCRC resources. The City of Portland cost allocation for the FY 2025-26 operating budget is $355,622, which is the MHCRC Special Appropriation amount contained in the City of Portland Council FY 2025-26 budget. The City’s cost allocation represents 65% of the total jurisdictional allocations to the budget with 35% provided by the East County jurisdictions.Nearly all the MHCRC’s resources are funds collected from the cable companies in the form of franchise fees from revenue earned within the MHCRC member jurisdiction areas and public benefit fees (referred to as “PEG/I-Net fees” in the franchise) county-wide. The expenditures are disbursements, governed by the IGA and restricted for certain purposes under the cable services franchise agreements, to:East County Jurisdictions (franchise fee balance);Community media providers (MetroEast Community Media for both operating and capital funds; and Open Signal for capital funds);Community Technology Grants to support nonprofits’, schools’, library’s, and local governments’ video production technology needsFor more detail on the MHCRC budget, see document Exhibit A: Proposed MHCRC FY 2025-26 Fund Budget.

The MHCRC is a quasi-governmental body, created by Intergovernmental Agreement, to develop and regulate cable television franchise agreements and manage associated public benefit resources and assets. The MHCRC reports to the City Councils of Portland, Gresham, Troutdale, Wood Village and Fairview, and the Multnomah County Commission. The commission is staffed by the City of Portland through BPS. The IGA stipulates that each participating jurisdiction approve the Commission's recommended budget. The MHCRC FY 2025-26 Budget was recommended for adoption by the Commission at the May 19, 2025, MHCRC General Meeting. The adoption of the MHCRC FY 2025-26 budget by each of the jurisdictions must be completed by July 1 to avoid disruption to MHCRC operations. The MHCRC is a quasi-governmental body, created by Intergovernmental Agreement, to develop and regulate cable television franchise agreements and manage associated public benefit resources and assets. The MHCRC reports to the City Councils of Portland, Gresham, Troutdale, Wood Village and Fairview, and the Multnomah County Commission. The commission is staffed by the City of Portland through BPS. The IGA stipulates that each participating jurisdiction approve the Commission's recommended budget. The MHCRC FY 2025-26 Budget was recommended for adoption by the Commission at the May 19 MHCRC General Meeting. The adoption of the MHCRC FY 2025-26 budget by each of the jurisdictions must be completed by July 1 to avoid disruption to MHCRC operations.Franchise fees from cable franchises, a portion of which goes to each participating jurisdiction. The City’s share of that amounts to approximately $4M annually, which goes to the General Fund, and is already incorporated into the City's budget. The participating jurisdictions allocate some funds back to the MHCRC to support its operations (in the FY 2025-26 budget the Portland contribution is about $318k through a special appropriation). Second, franchisees pay a PEG (Public Education and Government) fee to the MHCRC, which support capital investments in local community media centers (Metro East and Open Signal), and a grant program administered by the MHCRC. PEG fees are managed by the MHCRC and do not come to the City. The MHCRC held a public meeting on May 19 with an opportunity for the public to review the commissions budget. Stakeholders included the MHCRC Commissioners, members of the general public and staff from the community media centers (CMC) MetroEast and Open Signal, who receive MHCRC funding. No new business or business development projects will be impacted from this budget. Some small businesses and community-based organizations have received funding from the small grant program managed by the MHCRC with PEG funds. The MHCRC oversees cable television franchises, which indirectly impacts some businesses and households who choose to subscribe to those services. With the passage of the Comcast franchise agreement, the PEG percentage will drop .5% which is included in the budget forecast as presented in this ordinance. The MHCRC plays a watchdog and customer service role in that oversight, helping to mediate complaints related to cable subscriptions, and making sure cable companies offer services that are in the public interest. The Commission also helps ensure government meetings are broadcast to the public through the CMCs. The MHCRC does not otherwise have a role overseeing business or real estate development in the City.

The MHCRC has a Finance Committee, which developed the draft FY 2025-26 budget at their May 1 meeting, and the full MHCRC adopted the budget at its May 19, 2025, regular meeting. Each member jurisdiction considers budget approval at a city council or County Commission meeting.

The City of Portland’s cost allocation to the MHCRC FY 2025-26 budget, as outlined in this ordinance, is included in the Council FY 2025-26 budget as a Special Appropriation. No additional resource is anticipated.

Not applicable