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<br />I)!J J I 1'1' <br /> <br />Weare currently at the maximum PEG fee allowed by our Memorandum of <br />Understanding. We are, however, allowed to increase that level annually to cover cost of <br />living increases. According to the Bureau of Labor Statistics, the average CPI for 2007 <br />was 2.8%. Increasing the current PEG fee by this amount results in an eight-cent <br />increase per subscriber, per month, to $2.90. <br /> <br />No one really knows what is going to happen to PEG fees. As long as they remain a <br />source of revenue for the organization, we should take advantage of our ability to collect <br />them, at the allowable rate. <br /> <br />r ('1" I) I' ,II <br /> <br />While it's not easy to remain unaffected by the turmoil surrounding franchising and PEG <br />funding issues, the NMTV staff continues to work very hard to provide the programming <br />and services our cities, schools, and the general public have come to expect. <br /> <br />It's difficult to predict which way the ruling on the FCC Order will go. It is also difficult <br />to know how statewide franchising legislation may impact us, not to mention any other <br />number of issues that may arise. As such, the budget for 2009 has been prepared based <br />on current funding circumstances. <br /> <br />It is understood that circumstances in 2009 may require that the budget be amended. <br /> <br />P.9 <br />