0424 •
ORDINANCE NO. �� 7
AN ORDINANCE FIXING AND IMPOSING THE AGGREGATE AMOUNT OF FEES,
CHARGES AND SPECIAL TAXES TO BE PAID THE CITY OF JACKSONVILLE,
ARKANSAS BY ARKANSAS POWER & LIGHT COMPANY AND THE METHOD OF
PAYMENT THEREOF, AND FOR OTHER PURPOSES.
WHEREAS, Arkansas Power & Light Company (hereinafter referred to
as "Power Company ") is duly authorized by franchise agreement, heretofore
authorized and entered into by the City to construct, operate, maintain and
extend an electric system and to sell, furnish, transmit and distribute elec-
tric power and energy in the City of Jacksonville, Arkansas (hereinafter
referred to as "City "), to the City of Jacksonville, Arkansas and to the
citizens residing therein; and
WHEREAS, the Power Company is now providing electric service to
the City and its inhabitants and occupying the streets, alleys and other public
property of the City of Jacksonville, Arkansas pursuant to said franchise agree-
ment, which provides for certain payments in lieu of all other taxes, fees,
charges, impositions and licenses, except general taxes and further provides
that if any special taxes, fees, charges or licenses are assessed or imposed
upon or against the Power Company that the obligations for payments under
said franchise agreement shall immediately terminate; and
WHEREAS, the City requires additional revenues for payment of increased
salary requirements for City employees and other municipal functions and service
and desires to increase the payments of special taxes and charges paid by the
Power Company; and
WHEREAS, the City recognizes and accepts the purposes and results of
decisions of the Arkansas Public Service Commission and the Arkansas Supreme
Court requiring that the charges for service by a utility to customers in the city
be adjusted to adequately reflect any additional amounts of taxes imposed by
the City in excess of a standard level paid in other municipalities to avoid
discrimination among customers of the utility;
PAGE TWO
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF JACKSONVILLE, ARKANSAS, THAT:
Section 1. The manufacture, sale, furnishing, transmission and dis-
tribution of electric power and energy by the Power Company within the City
is hereby declared to be a special privilege and for such privilege the Power
Company shall pay to the City a special tax, charge or imposition as follows:
for the year 1977 the Power Company shall pay the sum of $142,761.89, said
sum representing the standard 4 1/4% franchise tax on 1976 residential and
commercial revenues plus the sum of $40,000.00 representing a special
privilege tax, for a total payment of $182,761.89, payable in approximately
equal installments beginning in January, 1977. Said payments shall be in
lieu of the payments otherwise called for in 1977, and thereafter in Section
9 of the Power Company's franchise agreement. Said Power Company shall
continue to pay said tax in succeeding years unless sooner modified.
Section 2. Nothing herein contained shall be construed as altering
or amending any of the rights of obligations of either the City or the Power
Company as provided in the existing franchise agreement between the City
and the Power Company, except insofar as the effect hereof will relieve the
Power Company from the obligation of hte payments provided for in Section 9
of said franchise agreement, so long as the provisions of this ordinance are
in effect.
Section 3. All ordinances and parts of ordinances in conflict with
the provisions of this ordinance are hereby repealed, including Ordinance No.
305 and Ordinance No. 367.
Section 4. It is hereby found by the City Council that there is an
urgent need for additional revenues for the City. Therefore, an emergency
PAGE THREE
is declared to exist, and this ordinance being necessary for the preservation
and advancement of the public peace, health and safety, shall be in full force
and effect from and after the date of its approval.
APPROVED this 40 day of January, 1977.
AYOR
ATTEST:
City Cle
APPROVED AS TO FORM:
'onald C. Mill Storney