(a) The franchisee may request approval from the village of a rate increase in the basic cable rate not more than once each year. However, no change in the basic cable rates shall occur without the approval of the village, and approval will not be granted unless a detailed, written petition for rate increase is filed with the Village Administrator, Clerk, and highest elected official, as appropriate, at least 90 days prior to the proposed effective date. A separate written notice advising that a petition for rate increase has been filed shall be mailed to the Village President and to each of the Village Trustees within five days of the filing of the said petition.
(b) The Village Board retains the right to act upon such request for an increase in basic rates and no rate increase shall be granted except after a public hearing. The petition for rate increase filed with the village shall include a list of the other municipalities being served by the grantee and the rates in effect in each one and the following reports which shall reflect the operations of the village system only:
(1) Balance sheet;
(2) Income statement;
(3) Cash flow statement;
(4) Statement of sources and application of funds;
(5) Detailed supporting schedules of expenses, income, assets, and other items as maybe required;
(6) Statement of current and projected subscribers and penetration; and
(7) Other reasonable information requested by the Village Board which may relate to the necessity for the rate increase. Any documentation requested by the village shall include sufficient detail as may be necessary to provide the village with the information needed to make an accurate determination concerning the financial condition of the grantee. All financial statements shall be certified as accurate by an officer of the grantee.
(c) The criteria for the Village Board’s decision concerning rate increases shall be the establishment of rates which are “fair and reasonable” to both the grantee and its subscribers and said rates may be generally defined as the minimum rates necessary to meet all applicable costs of service, including fair return on all invested capital, assuming efficient and economical management. In the event the Village Board takes no action approving, denying, or adjusting the proposed rate increase within 90 days of the submission to the village of the petition for a rate increase and notice thereof, the proposed rate increase will go into effect automatically and shall remain in effect as if the Village Board had approved the rate increase. Any petition for rate increase and the notice to the Village President and Trustees shall note in capital letters that the rate increase will be automatically effective if no further action is taken by the Village Board.
(Prior Code, § 9-3-9)