I know that $40 per event is typical, and so is the membership fee, but where did this $9 per ISI level come from?
To compete in ISI competitions, you have to be a registered member (annual fee - sign up for multiple years and save some money) and all of your tests have to be registered with ISI Headquarters.
For Learn-to-Skate programs, the rink just keeps track of your class levels as you move up, but to keep the competitions fair, the ISI requires that all the test forms be registered.
You only have to register each test once. Most ISI skaters take only 1-2 tests per year, so it's not an overwhelming investment. Even if your membership expires, you can still reactivate the tests once you renew.
The intent is to keep skaters and coaches honest about test/competition levels since you can then compete at any ISI event. The central registration lets competition directors verify eligibility easily, rather than having to call every skater's rink to ensure they're registered for the correct level.
However, the ISI's site says the test registrations (below level 7) are free, which is a change from when I skated; we paid a minimal fee, like $5/test.
The $9 charge might be for the coach/director's time in testing, completing the form and submitting it. Rinks often include a test patch/badge, which you could probably decline to save a little money if you don't want one for each test.
Yes, this competition will cost you $96, but another one this membership year will only cost you an entry fee if you're still skating at Delta level. Next year, you pay your membership fee and entry fee. If you pass FS1, you pay the $9 for the test once.
Ask if there's any way to save some money on the testing fees. Sometimes, if you're taking multiple tests at once or you don't want the badge, they'll waive some/all of the cost.
Just as an aside, you should also budget coaching fees if you expect the coach to be with you at the competition.
ETA: You don't have the new skates yet, so I don't think a one-month break in period is realistic. Either skate in your current skates or wait for the November competition.
If you need more support in your current skates, you can use packing or duct tape temporarily.