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Boa .43 PAGE 276 <br />The cost index for the Cable Television industry can only be discussed by itemizing the <br />day - to - day expense for materials and services. Some expenses are the same for all <br />consumer/businesses, such as utility cost, office supplies, etc. Other expenses such as <br />cable cost, amplifiers, etc., apply only to the cable television industry. Itemized <br />below are some of the most common expenditures in cablevision; indicating item cost in <br />1973, cost for the same item in 1980, and the percentage of cost increase, or decrease, <br />within that seven year period since Florida Cablevision's last rate increase in 1973. <br />ITEM <br />Gasoline----------------------------- <br />Oil----------------------------- <br />Tires ( Recaps ) -------------------------- <br />BusinessTelephone -----------------------= <br />Electrical Service 1 KWH (City VB Power) -- <br />Insurance ( 1974 - 1979 ) --------- <br />Postage ( 1st Class ) ------------------ <br />CableFeeder ----------------------------- <br />CableTrunk ----------------------------- <br />Connectors - Feeder pins ------------------ <br />Connectors - Feeder splices --------------- <br />Connectors - Trunk pins ------------------ <br />Connectors - Trunk splices ---------------- <br />Ground Rod- w/clamp ----------------------- <br />Transformers----------------------------- <br />Wall Plate w/fitting --------------------- <br />Pedestal•- Tap ----------------------- :____ <br />- Amplifier -------------- I <br />Splitter w/fitting----------------- <br />Amplifier - Trunk/Bridger w/AGC--------- :. <br />Amplifier - Distribution Bridger ---------- <br />Amplifier - Line Extender ----------------- <br />Amplifier - Line Extender w/AGC---------- <br />Florida Cablevision -Avg. Salary (1974-1979) <br />Drop Cable Outdoor ------------------------- <br />Drop Cable Indoor ------------------------ <br />High Strength Strand ---------------------- <br />Trenching & Laying Cable ------------------ <br />COST <br />COST <br />Index <br />1973 <br />1980 <br />PERCENTAGE <br />40C/gal --- <br />1.12/gal ------ <br />1807. <br />85C/qt --- <br />1.25/qt ------ <br />477. <br />10.95 ea --- <br />17.95 ea ------ <br />647. <br />14.00 ea --- <br />23.55 ea ------ <br />687 <br />61,/KWH --- <br />9.3C/WH ------ <br />55% <br />21,104 --- <br />54,042 ------ <br />156% <br />13C --- <br />15C ' ------ <br />.157. <br />89.50/M --- <br />188.93/M ------ <br />1117. <br />225.00/M --- <br />375.38/M ------ <br />677. <br />1.69 ea --- <br />2.45 ea ------ <br />45% <br />3.60 ea --- <br />5.50 ea ------ <br />537. <br />4.86 ea --- <br />ea ------ <br />14% <br />6.49 ea r-- <br />,5.55 <br />9.45 ea ------ <br />467 <br />1.00 ea _-- <br />1.85 ea ------ <br />857 <br />49C ea --- <br />35C ea ------ <br />(297.) <br />39C ea --- <br />42C ea ------ <br />87 <br />8.93 ea --- <br />14.31 ea ------ <br />607 <br />39.95 ea --- <br />91.24 ea ------ <br />128% <br />28.00 ea --- <br />32.62 ea ------ <br />177. <br />363.00ea --- <br />921.00ea ------ <br />154% <br />239.00ea --- <br />720.00ea ------ <br />201% <br />85.00 ea --- <br />171.00ea ------ <br />1017 <br />143.00ea --- <br />225.00ea ------ <br />577. <br />8031/yr --- <br />12�667-yr ------ <br />63% <br />36.50/M --- <br />45.20/M ------ <br />24% <br />26.00/M --- <br />35.70/M ------ <br />37% <br />28.50/M --- <br />58.50/M ------ <br />1167. <br />21C/ft --- <br />40C/ft ------ <br />90% <br />The accumulative average percentage increase for the *28 items listed above is 74.7%. <br />The rate increase proposed for May 1, 1980 is a very modest increase•'of 11.5% and will <br />only offset the operational expenses that have been incurred by itie -inflationary costs <br />of our day-to-day operation over the past seven years- We have always made every effort <br />to keep our service rates at the lowest possible operating minimum, and we will continue <br />to do so in -the future. The small rate lncrease= z t we have proRra med is necessary for <br />the continuing operational standards of Florida Cablevision. <br />Over the past three years Florida Cablevision has constructed 90 miles of cable system tc <br />serve new areas. New construction is a continuous operation for Florida Cablevision. <br />These projects are becoming more and more expensive. This rate increase will also help <br />off set the.:inflationary rates on new construction. <br />APPrUDIX III <br />�•`� Consumer Price Index and Inflation <br />The following table shows you the equivalent to a $5.00 monthly subscriber <br />rate set in 1966 and how this rate should rise based on the rate of inflation <br />determined by the consumer price index. <br />Year Consumer Price <br />Index <br />Rate of Inflation <br />Ecuivalent <br />1967 <br />100.0 <br />-- <br />5.00 <br />1968 <br />104.2 <br />4.2% <br />5.21 <br />1969 <br />109.8 <br />5_377 <br />5.49 <br />1970 <br />116.3 <br />5.92 <br />5.82 <br />1971 <br />121.3 <br />4.30 <br />6.07 <br />1972 <br />125.3 <br />3.30 <br />6.27 <br />1973 <br />133.1 <br />6.23 <br />6.66 <br />1974 <br />147.7 <br />10.97 <br />7.39 <br />1975 <br />161.2 <br />9.14 <br />8.07 <br />1976 <br />170_5 <br />5.77 <br />8.54 <br />1977 <br />181_5 <br />6.45 <br />9.09 <br />1978 <br />195.4 <br />7.66 <br />9.79 <br />1979 <br />218.5* <br />11.80* <br />10.95 <br />i1980 <br />236.3** <br />8.15** <br />11.84 <br />Projected based <br />on figures <br />available for <br />first 8 months of 1979 <br />**Projection based <br />on previous five year's <br />average rate of inflation <br />