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<br /> <br /> <br /> <br /> <br /> <br /> (1) For purposes of establishing expenses at the <br /> franchise level, cable operators shall allocate expenses <br /> and revenues aggregated at higher levels to the fran- <br /> chise level based on the ratio ot the total number of <br /> subscribers served at the franchise level to the total <br /> number of subscribers served at the higher level. <br /> (2) Except to the extent indicated below, all <br /> categories af costs allocated to, or identified at, the <br /> franchise level shall be allocated ta the basic service <br /> tier based on the ratio of channels in the basic tier to <br /> the total number of channels offered in the franchise <br /> area, including nonregulated and leased commercial <br /> access channels. These costs shall be allocated to each <br /> tier of cable programming services based on the ratio of <br /> channels in that tier to the total number of channels <br /> offered in the franchise area. <br /> (3) Ccsts of programming and retransmission <br /> consent fees, however, shall be allocated only to the <br /> tier on which the programming or broadcast signal at <br /> issue is offered. <br /> (4) Costs of franchise fees shall be allocated <br /> among equipment and installations, program service tiers <br /> and subscribers in a manner that is most consistent with <br /> the methodology of assessment of franchise fees by CITY. <br /> (5) Costs of public, educational, and governmental <br /> access channels carried on the basic tier shall be <br /> directly assigned to the basic tier where possible. <br /> (f) Common costs. Expenses which cannot be assigned to <br /> ariy single expense or service category shall be described as <br /> common costs. Common costs will be allocated to expense <br /> categories as follows: <br /> (1) Wherever possible, common costs are to be <br /> allocated to service cost categories based on direct <br /> analysis of the origin of the costs themselves. <br /> <br /> (2) When direct analysis is not possible, common <br /> costs shall, if possib]_e, be allocated to service cost <br /> categories based on indirect, cost-causative linkage to <br /> other costs directly assigned or allocated to the <br /> service cost category. <br /> (3) When neither direct nor indirect measures of <br /> cost allocation can be found, common costs shall be <br /> allocated to each service cost category based on the <br /> ratio of all costs directly assigned and attributed to a <br /> service cost category over total costs directly assign- <br /> able and attributable. <br /> (g) Unrelated expenses and revenues. Cable operators <br /> shall exclude from cost categories used to develop rates for <br /> the provision of basic service tier and equipment, any direct <br /> or indirect expenses and revenues not related to the provi- <br /> sion of such services. Common costs of providing basic <br /> service tier and equipment, and unrelated activities shall be <br /> allocated between them in accordance with paragraph (f) of <br /> this section. <br /> (h) Part-time channels, In situations where a single <br /> channel is divided ori a part-time basis and is used to <br /> deliver service associated with different tiers or with pay <br /> per channel or pay per view service, a reasonable and docu- <br /> mented allocation of that channel between services shall be <br /> required along with the associated revenues and costs. <br /> <br /> Page 9 <br />