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