§ 22-11. Franchise fee and financial reporting.

(a)

Franchise fee payment. As compensation for permission to use the streets and public ways of the village for the construction, operation, maintenance, modification and reconstruction of a cable system, and for the village's costs in establishing a regulatory program for a grantee, the grantee shall pay to the village each year an amount equal to five percent of the grantee's annual gross revenues.

(b)

Payment schedule; estimated payments; late payments.

(1)

The franchise fee shall be paid on a quarterly basis according to the following schedule: revenues for January through March shall be reflected in a May 15 payment; revenues for April through June shall be reflected in an August 15 payment; revenues for July through September shall be reflected in a November 15 payment; and revenues for October through December shall be reflected in a February 15 payment.

(2)

The grantee may make estimated payments for the first three-quarters of a calendar year, provided that no estimated quarterly payment is less than 25 percent of the previous year's total annual payment, and that any discrepancy between the estimated quarterly payments and the total owed for the calendar year is corrected by the February 15 payment.

(3)

Payments made after any due date shall be subject to a late payment fee in the amount of 25 percent for any portion of a month the payment is late, with a maximum of one late payment assessment in any one calendar month. Late payments owed in any second calendar month will be assessed the 25 percent charge based on the previous month's assessment, including that month's late payment assessment.

(4)

If the grantee agrees to charge a subscriber no more than actual costs the grantee incurs in collecting that subscriber's late payment, the grantee shall pay to the village a late payment fee of 1.5 percent per month or portion thereof for any late franchise fee payments.

(c)

Annual report. No later than April 15 of each year the grantee shall present to the village a report of system finances for the previous year, which shall include gross revenues from all sources and detail of the amount contributed by each revenue component within the franchise territory. In addition, upon request of the village, the grantee shall present to the village an audited, consolidated financial statement showing operating expenses, net income and an end-of-year balance sheet.

(d)

Acceptance not considered release. No acceptance of any payment by the village shall be construed as a release or as an accord and satisfaction of any claim the village may have for further or additional sums payable as a franchise fee or for the performance of any other obligation of the grantee.

(Ord. No. 96-4, § 22.17, 4-1-96)

State law reference

Authority, § 66.082(3)(c), Wis. Stats.