0251 fig.
RESOLUTION NO. 2 5 1- 8 0
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF JACKSONVILLE,
ARKANSAS, URGING THE ARKANSAS PUBLIC SERVICE COMMISSION TO
ESTABLISH A UNIFORM MUNICIPAL FRANCHISE CHARGE OF 4% ON GROSS
REVENUES TO BE ROLLED INTO THE RATES OF ALL UTILITIES WHEN THE
UTILITIES APPLY FOR A RATE INCREASE IN THE FUTURE
WHEREAS, Cities and Towns in Arkansas have the right to
determine the terms and conditions upon which a public utility
may occupy the streets of the City or Town, including the
amount and rate of the Municipal Franchise Tax; and
WHEREAS, the Arkansas Public Service Commission has the
right and duty to prohibit discrimination between utility
ratepayers and between municipalities; and
WHEREAS, in recognition of this problem, the Public
Service Commission on March 2, 1979, did in Docket U -3013
set this matter for public hearing and such public hearing
was held on June 7, 1979; and
WHEREAS, at this hearing, many city officials appeared
personally, the Arkansas Municipal League filed written comments
and League staff members made personal appearances on behalf of
all cities and towns urging the Public Service Commission to
establish a Uniform Municipal Utility Franchise Charge of 4%
of gross revenues to be rolled into the rates of all utilities
at the time they apply for a rate increase in the future; and
WHEREAS, at the 45th Annual Convention of the Arkansas
Municipal League held in Hot Springs on November 6, 1979, the
official delegates from cities and towns all over Arkansas did
unanimously urge the Public Service Commission to adopt the 4%
Uniform Charge for all utilities in Arkansas.
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF JACKSONVILLE, ARKANSAS.
Section 1. That we urge the Arkansas Public Service
Commission to establish a Uniform Municipal Franchise Charge
of 4% on gross revenues to be rolled into the rates of all
utilities when the utilities apply for a rate increase in
the future.
Section 2. We sincerely believe that anything other
than a percentage is inequitable and any percentage less than
4% is inadequate for municipal needs.
PAGE TWO RESOLUTION NO. 5 1 - 8 0
Section 3. Any attempt to take all franchise taxes
out of the base rates would make the Public Utility itself
exempt from all municipal taxes and charges for the use of
Municipal Streets and would give the Public Utility preferred
status as a tax- exempt private corporation and would discriminate
against all other businesses, individual taxpayers and against
Municipal Governments.
Section 4. That we further urge the Public Service Com-
mission to resolve this question at the earliest possible time.
Section 5. The City Clerk is hereby directed to mail a
copy of this resolution to the Public Service Commission.
WITNESS OUR HANDS AND SEALS THIS 3rd DAY OF January ,
1980.
R
ATTEST:
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APPROVED AS TO FORM:
PAUL D. GROCE, CITY ATTORNEY
NOTE: PER SECTION 5. COPY OF RESOLUTION' FORWARD TO P.S.C. ON JANUARY 4, 1980.
(CITY CLERK GERREN)
NOTE: HEADING OF RESOLUTION PLACED HEREWITH AFTER COUNCIL MEETING AS
THE RESOLUTION PROVIDED THE CITY FRQI MUNY. LEAGUE OFFICES DID
NOT MEET THE FORM REQUIRED BY CITY OF JACICSONVITTF.
(City Clerk Gerren)