HomeMy WebLinkAboutAgenda Statement 1981/07/07 Item 5r 4
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Meeting Date
Resolution /~`~ 3i~ Approving Rate Increases for Cox Cable San Diego
SUBMITTED BY: Director of Finance
(4/5ths Vote: Yes No X )
€ At the public hearing on June 16, 1981, the City Council directed staff
' to bring back a resoluti a roving a basic subscriber rate increase of
$10.00 instead of the 10.50 s proposed by Mission Cable TV, Inc. and to
adjust other rates appropriately. Therefore, it is my
RECOMMENDATION:
That Council approve Resolution for rate increases for Mission
Cable TV, Inc.
BOARD AND COMMISSION RECOMMENDATION: Not Applicable
DISCUSSION:
On March 31, 1981 Mission Cable TV, Inc. filed a letter of request with
the City Manager to increase the basic subscriber rates in the City. At
the public hearing on June 2, 1981, the City Council requested additional
financial information to justify a rate increase and continued the public
hearing to June 16, 1981.
Mission Cable TV, Inc. provided the additional financial information as
requested and at the public hearing on June 16, 1981, the City Council
approved an increase in basic subscriber rates from $9.60 to $10.00 instead
of $10.50 requested by the Company. Non-transient commercial subscriber
rates are 60% of the basic rates and therefore, would increase from $5.75
to $6.00 instead of the .30 requested.
The new rates, as approved by the City Council, will become effec
September 1, 1981.
FINANCIAL IMPACT: Not Applicable
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Chula Vista, California
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COUNCIL AGENDA STATEMENT
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Form A-113 (Rev. 11/79)
Cox Cable San Diego, Inc.
t , 6225 Federal Boulevard
- San Diego, California 92114 A Subsidiary of
Telephone 714/263-9251 Cox Broadcasting Corporation
Cox Cable
San Diego
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June 9, 1981
Gordon K. Grant
Director of Finance
City of Chula Vista
276 Fourth Avenue
Chula Vista, California 92010
Dear Gordon:
Attached is the financial statement requested by the Council.
- I believe I have complied with the requirements of your letter
of May 27, 1981.
The only exception is items 3 and 4. These items are prepared
in Atlanta and are not available to me locally. Hopefully,
I have given enough information for you to formulate an opinion.
For the most part, my allocations are based on the ratio of
Chula Vista subscribers to the subscribers in the entire system.
- Our policy is to not release information like this to the press.
_ We have provided this information because the Council asked for
it as it is their right to do so. I am sure that you, the staff
- of the City of Chula Vista, the mayor and City Council will
respect our right of confidentiality concerning the items contained
in this income statement.
If you have further questions or comments, please do not hesitate
to ask.
Sincerely,
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James H. Smith, III
Vice-President/General Manager
JHS:ggb
Attachment
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SCHEDULE A
Mission Cable TV, Inc.
Cable TV Income Statement
For the years ended March 31, 1981 and 1980
(City of Chula Vista portion only)
Revenues
CATV Service
CATV Connection & Copyright
Local Origination
Total
Increase over Prior Year
Expenses
Technical
Salaries & Benefits
Truck Operating
Power-Amps & Headend
Repair & Maintenance
Microwave & Transmission
Other
Total
Local Origination
Salaries & Benefits
Program Rights
Other
To to 1
March 31 March 31
1981 1980
2,061,597 1,732,235
113,595 103,176
63,632 53,277
2,238,824 1,888,688
18.5%
321, 046
32,561
20,501
44,361
22,543
14,614
271,669
32,463
14,364
39,311
10,332
59,466
455,626 427,605
31,760 27,000
36,568 10,563
20,284 23,406
88,612 60,969
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GOXGOble
} San Diego
• City of Chula Vista
276 Fourth Avenue
Chula Vista, CA 92010
Cox Cable San Diego
6225 Federal Boulevard
San Diego, California 92114
Telephone 714/263-9251
A Subsidiary of
Cox Broadcasting Corporation
March 31, 1981
The Honorable Mayor, City Council and City Manager:
Cox Cable San Diego has been granted a rate increase in the
basic service rates in the City and County of San Diego from
$9.60 to $10.50 per month.
At this time, we are requesting that the city council approve a
rate adjustment in the basic subscriber rates from $9.60 to
$10.50 per month effective July 1, 1981. No other charges will
be changed at this time. If approved, we will notify our
subscribers on June 1, 1981.
If we can be of any assistance, please feel free to call.
Sincerely,
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Jam- es H. Smith, III
Vice President $ General
Manager
JHS/dmk
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Mission Cable TV, Inc.
March 31 March 31
1981 1980
' General & Administrative
Salaries & Benefits 401,236 335,669
Data Processing 137,870 92,634
Utilities 9,190 5,761
Telephone 13,756 11,450
Postage & Office Supplies 34,783 28,155
Property Taxes 23,572 30,593
Insurance 13,980 13,085
Bad Debt 68,464 44,497
Copyright Fees 43,891 27,291
Franchise Taxes 51,444 53,538
Other 55,695 51,881
Total 853,881 694,554
Marketing
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Salaries & Benefits ~' 67,932 69,548
Advertising 8,733 13,105
Other 6,796 1,714
w Total 83,461 84,367
Depreciation & Amortization 528,482 459,686
TOTAL EXPENSE 2,010,062 1,727,181
Increase over Prior Year 16.4%
Income Before Taxes 228,762 161,507
Federal Income Taxes 80,209 61,683
State Income Taxes 20,503 12,090
Total 100,712 73,773
Net Income 128,050 87,734
of Net Profit after Taxes 5.7% 4.6%
Net Assets 4,083,477 2,861,462
Return on Net Assets 3.1% 3.1%
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