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0478 Y ORDINANCE NO. i 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 re- ferred 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 electric 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 Jack- sonville, Arkansas pursuant to said franchise agreement, 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 Com- pany that the obligation for payments under said franchise agreement shall immediately terminate; and WHEREAS, the City requires additional revenues for pay- ment 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 Commis- sion and the Arkansas Supreme Court requiring that the charges for service by a utility to customers in the City be adjusted to adequately refelct any additional amounts of taxes imposed by the City in excess of a standard level paid in other munici- palities 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, trans- mission and distribution 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 1978 the Power Company shall pay the sum of $175,285.24 said sum representing the standard 4 7o franchise tax on 1977 residential and commercial revenues plus the sum of $40,000.00 representing a special privilege tax, for a total payment of $215,258.24 payable in approxi- mately equal installments beginning in January, 1978. Said payments shall be in lieu of the payments otherwise called for in 1978, 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 or 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 Com- pany from the obligation of the payments provided for in Sec- tion 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 re- pealed, 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 is declared to exist, and this ordi- nance being necessary for the preservation and advancement of Page Three the public peace, health and safety, shall be in full force and effect from and after the date of its approval APPROVED AND ADOPTED this 2nd day of February 1978, CITY OF JACKSONVILLE, ARKANSAS BY May ATTEST: i City Clerk APPROVED AS TO FORMA Porlale. C. Mills, Oily Attorney