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BASIC TIER 2000 MAXIMUM AND 2001 MAXIMUM AND PERCENT CHANGE <br /> ACUAL RATE (without ACTUAL RATE (without 2000-2001 <br /> franchise fee) franchise fee) <br />1240 Rate $5.64 $5.96 +6% <br />1235 Rate $.73 $.71 -$5.3% <br />TOTAL RATE $6.37 $6.67 +4.7% <br /> <br />Time Warner is allowed to charge subscribers in 2001 as much as $6.67 for the 13 Basic channels, <br />which is the rate they have chosen. This is an actual rate increase of $.60 over last year's rates <br />(excluding the franchise fee). A total of $.71 is attributable to the network system upgrades, and $5.62 <br />includes the costs for programming, copyright fees, a 7.5% profit, and projected inflation. <br /> <br />Centralina Council of Governments concludes that Time Warner has set its rate at the maximum <br />allowable rate as set in the Social Contract with the FCC. The Franchise Authority should approve the -- <br />Basic Rate of $6.67 per month for the 2001 calendar year. <br /> <br />SUMMARY APPROVED BY: Sandra Montgomery, AICP <br />TITLE: Cable Telecommunications Administrator <br /> <br /> <br />