(A) The grantee shall pay to the franchising authority a franchise fee equal to 5% of gross revenues received by the grantee from the operations of the cable system on an annual basis; provided, however, that the grantee may credit against any such payments:
(1) Any tax, fee, or assessment of any kind imposed by franchising authority or other governmental entity on a cable operator, or subscriber, or both, solely because of their status as such; and
(2) Tax, fee or assessment of general applicability which is unduly discriminatory against cable operators or subscribers (including any such tax, fee, or assessment imposed, both on utilities and cable operators and their services).
(B) For the purpose of this section, the 12-month period applicable under the franchise for the computation of the franchise fee shall be a calendar year, unless otherwise agreed to in writing by the franchising authority and grantee. The franchise fee payment shall be due and payable 90 days after the close of the preceding calendar year. Each payment shall be accompanied by a brief report from a representative of the grantee showing the basis for the computation.
(C) In the event the maximum allowable franchise fee is increased by law, the franchise authority may request an increase up to an amount equal to the maximum allowed by law. However, prior to the grantee having the obligation to pay that fee, the grantee must be notified in writing 90 days prior to that obligation occurring. The grantee has the right to pass through to the subscriber the franchise fee.
(Ord. 501, passed 4-19-93)