§ 13-604  RATE CHANGES.
   (A)   Unless permitted by federal law, increases in the rates and charges for basic service as set forth by the franchisee may not be made without prior approval of the city. All such increases shall be subject to the procedures set forth below.
   (B)   (1)   The licensee may make application to the city for a revision of the rate schedules.
      (2)   No revisions shall be approved unless all of the standards and prerequisites of revision have been met and complied with and determinations have been made, all pursuant to this section, unless further review is deemed not necessary.
      (3)   The rate schedule will be deemed revised upon approval of a majority vote of the city.
   (C)   The standards for granting a revision, where review is deemed necessary, will include at least the following:
      (1)   The ability of the licensee to render the system services and to derive a reasonable profit therefrom under the existing rate schedule and proposed rate schedule;
      (2)   Cash flow derived from system services;
      (3)   Rate of return on the licensee’s equity as compared to businesses of equivalent risk. The rate of return shall be calculated on a cumulative basis for all system revenues and costs including services such as pay television that may be exempt from local rate regulation. Upon request of the city, the licensee shall promptly provide all information as shall be necessary to determine the system revenues and costs;
      (4)   A fair rate of return with respect to investments having similar risks to that of providing cable communication services;
      (5)   Capital expenditures by the licensee in providing updated technology and service to subscribers as compared to other systems of similar size and complexity;
      (6)   Prevailing rates for comparable services in other systems of similar size and complexity and similar material franchise requirements; and
      (7)   Such other factors as the city or the licensee may deem relevant.
   (D)   In any proceeding, the city may exclude from the accounts of the licensee any payment or compensation to any parent corporation or any affiliated interest for any services rendered or property or service furnished unless the licensee shall establish the legitimacy and reasonableness of such payment or compensation.
   (E)   The procedures to be followed in revising the rate schedule shall include at least the following:
      (1)   A proposal for rate change will be submitted to the city;
      (2)   The proposal shall be supported by statistical and other proof indicating that the existing rate or charge is inadequate and unreasonable and that the proposed changes are required and will enable the licensee to render service, to fulfill its obligations under the franchise and to derive a reasonable profit therefrom;
      (3)   The proposal shall include (or the licensee shall provide at the request of the city) current information and financial information with at least the following from the licensee concerning the cost of serving the city:
         (a)   Balance sheet;
         (b)   Income statement;
         (c)   Statement of sources and applications of funds;
         (d)   Detailed supporting schedules of expense, income, assets and other items as may reasonably be required by the city;
         (e)   Statement of current and projected subscribers; and
         (f)   A current list of rates and charges of the licensee applicable to other systems owned or operated by the licensee.
      (4)   The city and the franchisee will follow the procedure established by Neb. RS 18-2206.
(2005 Code, § 13-604)