In fiscal year 2011-2012, the city created a Cable Public, Educational, and Government (PEG) Channel fund pursuant to Texas Senate Bill 1087 (SB 1087).  The city currently is collecting a fee, labeled a "State Franchise Fee" on customers' bills, equal to 1% of gross revenues, to fund capital expenditures associated with Public, Educational and Government ("PEG") access channel facilities.  The City has 3 channels, Comcast channels 16, 17, and 18.  The City uses channels 16 and 17 and Texas City Independent School District uses channel 18.

On November 19th, 2014, the City Commission approved Ordinance 14-33, reimbursing TCISD in the amount of $50,000 for capital expenditures in support of the PEG channels. In order to further facilitate the improvement of programming content for all three channels, the City would like to reimburse the school district for applicable capital purchases, not to exceed $55,000.00 per year for the next five years.

TCISD's purchasing policy is not in conflict with the city's purchasing policy requirements. To be reimbursed by the City, TCISD must follow the guidelines for equipment purchases set forth in SB 1087. TCISD must also generate content for Texas City's PEG channels and grant city staff access to TCISD's video production equipment and facilities.