0528 ORDINANCE NO. 5 2 8
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 electric power and energy in the City of
Jacksonville, Arkansas (hereinafter referred to as "City "), to the
II C 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,
i
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 Company that the obligation 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.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF JACKSONVILLE, ARKANSAS, THAT:
Page Two
Section 1. The manufacture, sale, furnishing, transmission 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 1979 the Power Company shall
pay the sum of $207,000.00 , said sum representing the standard
4 franchise tax on 1978 residential and commercial revenues plus the
sum of $40,000.00 representing a special privilege tax, for a total
payment of $247,000.00 payable in approximately equal install-
ments beginning in January 1979. Said payments shall be in lieu of the
payments otherwise called for in 1979, 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 Company from the obligation of the 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 Ordinances
No. 305, No. 367, and No. 478.
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 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 AND ADOPTED THIS 14th day of December , 19 78 .
A TAY"
ATTEST:
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CI CLERK
APPROVED AS TO FORM:
RON MILLS, CITY ATTORNEY