0650 RESOLUTION NO. 650 ( 4 - 2010)
A RESOLUTION SUPPORTING AMENDMENTS TO THE ARKANSAS
CONSTITUTION TO ELIMINATE INTEREST RATES LIMITS FOR GOVERNMENT
BONDS AND LOANS, REVISE INTEREST RATE LIMITS ON OTHER LOANS, AND
AUTHORIZE FINANCING OF ENERGY SAVINGS PROJECTS (ISSUE #2 ON THE
NOVEMBER 2010 GENERAL ELECTION BALLOT), AND MODIFY AND IMPROVE
FINANCING ALTERNATIVES AVALABLE TO ARKANSAS IN SUPPORT OF MAJOR
ECONOMIC DEVELOPMENT PROJECTS (ISSUE #3 ON THE NOVEMBER 2010
GENERAL ELECTION BALLOT); AND, FOR OTHER PURPOSES.
WHEREAS, provisions of the Arkansas Constitution that authorize bond financing
by Arkansas municipal governments, such as Amendment 62 for tax secured bonds and
Amendment 65 for revenue bonds, have interest rate limits substantially below market
requirements which severely restrict and, in many cases, have halted financing of
essential projects for Arkansas cities and towns;
WHEREAS, interest rate limits in Amendment 60 of the Arkansas Constitution
currently restrict options for consumer financing that may be offered by businesses
operating solely or primarily within the State of Arkansas. Such limits have been
preempted by Federal legislation for businesses conducting interstate operations,
creating circumstances that produce a significant disadvantage for Arkansas businesses,
limit the availability of affordable financing for their consumer customers, and having a
significant negative impact on the economic vitality on Arkansas cities and towns;
WHEREAS, expanded financing options should be available for projects that can
provide savings in energy costs for Arkansas municipal governments so as to improve
the possibilities of potential for such projects;
WHEREAS, financing authority for State support provided by Arkansas
Constitution, Amendment 82, for major economic development projects should also be
more flexible while maintaining existing restrictions on total State support which may be
committed in order to facilitate the financing of more projects over a wider area of the
State and enhancing economic benefit for more of the State and its citizens; and,
WHEREAS, the effectiveness of current Arkansas law on municipal and economic
development financing is unduly restrictive and in need of updating in order to
promulgate economic growth and to allow municipalities and the State to be better
stewards of taxpayer dollars and have greater options on capital improvement projects.
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Resolution No. 650 ( #12 -2010)
Page Two
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF JACKSONVILLE, ARKANSAS, THAT:
SECTION ONE: The City hereby expresses its support and
endorsement for Issues #2 and #3, referred to the voters of the State of Arkansas by
the 2009 Arkansas General Assembly as proposed Amendments to the Arkansas
Constitution, and strongly encourages voters to approve these proposals at the
November 2010 General Election. These proposed Amendments will help municipal
governments throughout Arkansas secure timely financing for important public capital
improvements in a cost effective manner, improve stewardship and save taxpayer
dollars, and stimulate and promote economic development throughout the State.
SECTION TWO: Additionally, following approval at the November 2010
General Election, the City Council of the City of Jacksonville, Arkansas, also supports
expeditious adoption by the Arkansas General Assembly in 2011 of the Arkansas
statutory revisions required to implement the approved Amendments.
SECTION THREE: Any and all Resolutions in conflict herewith are hereby
repealed to the extent of said conflict.
APPROVED AND ADOPTED THIS l6H' DAY OF SEPTEMBER, 2010.
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