Title
Cox Communications' Annual FCC Filing and Rate Adjustments (B)
Explanation
Cox Communications' annual FCC 1240, 1235, and 1205 filing forms for the projected period June 1, 2002 through May 31, 2003 have been reviewed and all technical and accounting matters have been resolved. FCC Forms 1240, 1235, and 1205 establish the maximum permitted Tier One basic cable service rate, hourly service charge rates, and rates charged for various cable equipment rentals in accordance with Federal Communications Commission (FCC) regulations. Per FCC Form 1240, Cox Communications' maximum permitted basic cable service retail rate increased from $8.58 per month to $9.80 per month due to past and projected subscriber levels, expenses related to franchise requirements, and inflation. Also, due to extensive network upgrades and per FCC form 1235, Cox Communications' has added $1.80 to its maximum permitted rate for these capital costs. This additional rate may be charged only to Cox customers who are actually receiving the upgraded service. Although the new total maximum permissible monthly rate for basic cable service could be as much as $11.60, Cox is only increasing the actual rate to $11.10. Per FCC Form 1205, maximum permitted hourly service rates and equipment rental rates have also changed as specified on the Proposed Rate Structure Form. Copies of the forms are available in the City Clerk's Office.
Fiscal Note
City revenue is now received from the State Department of Revenue in the form of a monthly Communications Services Tax payment. Unknown factors such as cable subscriber levels and service selection prevent the exact determination of the specific fiscal impact of Cox's rate changes.
Recommendation
The City Commission approve Cox Communications' Tier One rate change, hourly service charge rates, and related service and equipment rental rate changes as filed on FCC Forms 1240, 1235, and 1205 for the projected period of June 01, 2002 through May 31, 2003.