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<br /> <br /> <br />North Central has not provided supporting documentation <br />showing the terms and conditions of its financing avail- <br />able to meet the franchise requirements and operational <br />plans. For the purpose of reviewing its overall finan- <br />cial plan, confirmation of the terms and conditions of <br />financing are necessary. Moreover, North Central has <br />not provided supporting documentation of the terms and' <br />conditions of its financing for the purpose of reviewing <br />~ts impact on the operational plans of the system. <br /> <br />24. The cablesystem has experienced short-term operating <br />expense shortfalls in the recent preceding years. While <br />it is assumed by the Commission that any tra~feree of <br />the system would attempt to remediate such shortfalls, <br />North Central has failed to demonstrate that it could <br />financially withstand such short-term deficits. <br /> <br />25. Th~ information which has been supplied by North Central <br />represents in large part financial information for six <br />cable systems in Minnesota. The Commission represents <br />one of those six systems.; . The Commission finds it <br />.impossible to analyze the financial ability of North <br />Central relative to this system without system specific <br />financial information. <br /> <br />26. North Central has established as its financial goals a <br />'minimum operating margin of 40%, subscriber penetrations <br />from 43% to 55%, and a minimum rate of return on invest- <br />ment of 15%. North Central has not supplied sufficient <br />financial information and documentation for the Commis- <br />sion to determine whether its financial plans will <br />achieve the aforementioned goals. As a result of exist- <br />ing experience in the system, the Commission determines <br />these goalS and projections are unreasonable. <br /> <br />27. Absent sufficient financial information from North <br />Central, the Commission determines that the financial <br />ability of North Central to meet existing and future <br />obligations is inadequate. The Commission also notes <br />for the record that the existence of sufficient finan- <br />cial information would not in and of itself have led to <br />a finding of adequa~e financial ability. The existence <br />of such information would have served only as a basis <br />for the Commission to perform a complete financial <br />analysis which mayor may not have resulted in a deter- <br />mination that North Central was financially able to <br />fulfill existing and future obligations. <br /> <br />28. The Commission determines the financial qualifications <br />of North Central are unsatisfactory and unacceptable. <br /> <br />- 5 <br /> <br />"~- _ .~_-.~ -..- . '"':-"':9": <------",..-.~ .:~," <br />