Cable TV, Three Municipalities and a Not-for-Profit

by Kathy Savolt and Cindy Goldstein -

In the last edition of The Mamaroneck Observer, we wrote an article prompted by the events at the April 13, 2026, meeting of the Village of Mamaroneck (VOM) Board of Trustees (BOT).  We included what we could piece together of the inception of LMC Media (LMC), the tri-municipal collaboration as well as providing information on how the funding flowed from the cable companies to LMC and the Villages of Larchmont (VOL) and Mamaroneck and Town of Mamaroneck (TOM).

The article (see HERE) recounted how the municipalities formed the separate Board of Control (BOC) to negotiate with the cable company and manage the franchise fee income. 

Our information was limited by time and availability.  We wanted to know more and further report about what happened to bring us to the BOT meeting on April 13^th when the courtroom was packed with LMC supporters describing the importance of LMC and asking the BOT to fund the organization at previous levels.  With time still not on our side (FOIL requests can take weeks), we managed to find a great deal of information in online public records. 

This is a story of good intentions, a changing industry, competing and conflicting priorities, internal changes and unheeded early warnings.  It’s a continuing story still unfolding as the VOM finalizes the 2026-27 budget and negotiates an agreement with LMC.

Cable Industry in Decline

Major changes have come to the telecommunications world, and many have predicted the death of cable television.  “Cord-cutting” was the term coined to describe the drop in cable subscriptions due to advances in streamlining technology.  Across the country, local governments, who for decades had looked to the franchise fees as a regular revenue stream for the use of having cable lines run on public property, watched as consumers cancelled their cable subscriptions and embraced broadband streaming services which were not subject to franchise fees.  At this time, franchise fees are still being paid directly to the three local municipalities by the two cable providers: Cablevision and Verizon.

Municipalities Feel Financial Pressure

Local municipalities are under a lot of pressure to keep property taxes as low as possible.  In our area, housing costs are very high, residents feel the pinch and municipalities look for non-tax revenue to cover ever-increasing costs to provide the services residents have come to expect.  Additionally, every municipality works hard to stay under the New York State tax cap.

Reportedly driven by the 2007-2009 fiscal crisis, the three municipalities and the BOC began discussions about getting a piece of the franchise fees to augment their budgets without raising taxes.

At that time, Verizon had come into the market and now there were two companies paying fees.  The BOC had built up a reserve and there was money available.

In fiscal year 2012-13, VOM’s Financial Statements show a payment of $169,608 recorded as BOC payment under “Miscellaneous Revenue.”  This was VOM’s share of $350,000 from the BOC franchise fee reserve fund.

These annual payments continued for ten years until FY 2021-22, which adds up to almost $1.7 million in revenue for VOM and a reduction of the BOC reserve fund of $3.5 million.

In November 2018, the late Assistant Village Manager, Dan Sarnoff, sent a memo to the VOM Board of Trustees (see HERE) warning them about the continued practice of withdrawing these monies.  He informed them that the Comptroller of the BOC was recommending a reduction in the payments to the municipalities and had proposed a phase out of said payments to allow the BOC to maintain a surplus to meet future anticipated expenses.

At the time, removal of the payment from the Mamaroneck Village budget would result in an approximately 1% property tax levy increase.  It seemed that none of the municipalities wanted to reduce their share of the franchise fees as the payments continued at the same level until 2022.

Additional Funds Available with PEG Fees

Besides the franchise fees explained above, the two cable companies were also paying PEG fees – which stands for Public, Educational and Government.  These fees were negotiated with the providers and not mandated by Federal law.  They were intended for capital projects and equipment purchases and kept separate from the franchise fees.  They appear to have been made available to LMC upon request to the BOC.

One of the capital purchases was the LMC van which was purchased in 2019.  However, this purchase was unlike any other.  To save money, then Mayor Tom Murphy proposed to buy the vehicle through a Westchester van contract (negotiated to give public entities discounts on products). The purchase would be made by VOM and LMC would reimburse them with PEG funds from the BOC, and the title would be transferred to LMC.  Going forward, the VOM would maintain the vehicle and the TOM would allow LMC access to their gas.  (See Resolution HERE.)

Village Manager Kathleen Gill recently discovered that the LMC van is still owned by the VOM, included in their fleet and covered by their insurance policy.  It is not known if the VOM ever received reimbursement from the PEG fund. 

In March 2021, the VOL contacted then-Administrator of the BOC, Village Manager Jerry Barberio, and requested a proportional withdrawal of $100,000 from the PEG funds to pay for an upgrade to their facilities in Village Hall.  (See emails HERE.) This appears to be the beginning of a major shift in the relationship between the BOC and the three municipalities. (See legal memo HERE.)

Internal Changes and Pressing Priorities

While the BOC was chugging along, all three municipalities and LMC were each facing major internal challenges and changes.

All three municipalities had new personnel and professional management teams.  In the case of the VOM, there were multiple changes.  The people with history and knowledge were gone.  All three municipalities were facing increased financial pressures and the normal day-to-day problems that sometimes rose to crisis level, including flooding.

LMC was not immune to change either.  Besides a change in leadership, LMC had lost their long-standing studio at Mamaroneck High School and was using makeshift space while looking for a new space and subsequently, dealing with construction and finances when they eventually landed on Mamaroneck Avenue.

Larchmont Pulls Out of the BOC

After what appears to be a lot of discussion within and among the three municipalities that began with the VOL requesting the PEG funds in early 2021 (see emails HERE), Larchmont gave their required one-year notice to leave the BOC.

A press release from the VOL in November 2021 (see HERE) outlines the rationale for their withdrawal. They cited the lack of written agreements and clear parameters about the use of the franchise funds and the fact that those funds were dwindling.  No aspersions were cast on LMC but rather they expressed frustration with what boils down to the lack of a plan to properly address the interests of the BOC and their constituents. 

After the required one-year notice period expired, the VOL withdrew in November 2022 and entered into a Consultant Agreement for Professional Services with LMC (see HERE). Under that agreement they are paying LMC approximately 80% of their franchise fees for services provided and retaining the other 20%.

In an email to the community dated November 8, 2021, former Mayor Tom Murphy – the VOM member on the BOC with a long history of the arrangement - described the 40-year agreement, its purpose and the importance of LMC to the community.  He acknowledged the falling franchise fee revenue and that LMC and the municipalities would have to plan for the future.  (See email HERE.)

Did the Board of Control Cease to Exist?

There clearly was no agreement between the TOM and the VOM on whether the withdrawal of the VOL resulted in the dissolution of the BOC.  

There are a series of emails in 2023 between the VOM and the TOM discussing this.  (See emails Feb 2023 HERE.)  Meanwhile, the cable companies had ceased the PEG payments.  

By reading the emails, there appears to be an effort by the TOM and the VOM to hold onto the BOC format.  These discussions were not productive, and both municipalities decided to go it alone.  The emails mention the distribution of the remaining franchise fees and PEG funds to the municipalities. (See Sept emails HERE.)

LMC Studio on the Avenue

As the municipalities parted ways, both agreed to use a portion of the remaining PEG funds for the construction and outfitting of LMC’s Studio on the Avenue.

At the September 26, 2023, BOT meeting, a payment of $413,493.77 for their share of design and construction using the VOM PEG funds was approved.  The Village cites their share of the PEG fund of $750,000 at that time.  (See Resolution HERE.)

VOM Receives Franchise Fees Directly

The 2026-27 Tentative Budget shows that VOM received $172,339 in FY 2023-24 and $574,658 in FY 2024-25.  This document also shows the same amounts as expenses paid to LMC, which is controversial because there was no legal agreement between the parties to justify these payments.  These two payments were the entire amounts received by the VOM with nothing retained which was contrary to the previous practice.

VOM Attempts to Segregate Franchise Funds

At the December 23, 2023, BOT meeting, a unanimous vote established an internal trust account for the franchise fees now directly received by the VOM.  The resolution (see HERE) states that VOM wishes to continue the practice of using the fees for the operation of public access programming.  Subsequently the VOM was informed by their auditors that such a trust fund could not be created. 

What Now?

LMC has now executed agreements for professional services with two out of the three original BOC members with the VOM contract waiting in the wings (see HERE). There seems to be a stalemate and LMC requested to negotiate with the BOT directly rather than with Village staff whose job it is to run the day-to-day operations of the Village.  Currently, there are no ongoing negotiations, and the BOT is poised to approve their budget on Monday, April 27^th.  That budget includes $250,000 for payment to LMC for services, however, if no contract terms are reached, that money won’t be disbursed.

Partnerships are always difficult, especially when money is involved.  One of the foremost priorities for municipalities is always careful stewardship of taxpayer dollars.  LMC’s mission, as reported on their 2024 990 tax form, is “connect, create and inform the community through the use the digital media” and they need funding to fulfill that mission.  LMC’s viewers and volunteers are passionate in their support of the organization as shown by their participation at the April 13^th BOT meeting.

LMC has found common ground with both Larchmont and the Town of Mamaroneck.  We’ll have to wait to see what happens between the Village and LMC.

Editor’s Note: TMO reached out to LMC officials prior to publication of this article.