1341RESOLUTION NO. I3
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST MEMPHIS,
ARBANSA3, OPPOSINGITY CONDEMNATION AUTHORITY AND FRANCHISINGT
STATE ELECTRIC UTIL
WHEREAS, the United States House of Representatives
Agriculture Committee recently reported out legislation that would
prohibit a municipality from acquiring a rural electric
cooperative's facilities in annexed territory, granting a franchise
to a competing utility for service in annexed areas, and collecting
franchise fees from a rural electric cooperative serving an annexed
area; and,
WHEREAS, exempting rural electric cooperatives from municipal
franchise fees would unduly grant to cooperatives a competitive
advantage for the attraction of industrial load and unfairly tax
investor-owned and municipally owned utility customers for lost
revenues associated with the discontinuance of franchise taxes
otherwise payable by rural electric cooperatives; and,
WHEREAS, preemption of state laws allowing municipalities to
acquire facilities of utilities after annexation serves the vital
function of allowing for comprehensive planning for provision of
electric service to local residents and prohibiting duplication of
facilities; and,
WHEREAS, Arkansas state law adequately protects the rights of
rural electric cooperatives in the event that a municipal
government should choose to acquire its territories and facilities
subsequent to annexation through a comprehensive property valuation
procedure which also serves to compensate the utility for lost
revenues;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF WEST MEMPHIS, ARKANSAS:
1. The City Council of West Memphis, Arkansas, hereby states
its opposition to proposed Federal legislation limiting
condemnation and franchising authority of municipalities over rural
electric cooperatives and requests that Mayor Ingram contact the
Arkansas Congressional delegation to oppose the bill.
2. This Resolution shall be in full force and effect from and
after its passage and approval.
PASSED AND APPROVED this -3RD day of ~uN~ ~
19~.
KITH M: INGRAM, M{~YOR
C ty of West Memphis, Arkansas
ATTEST:
DEPUTY city Cle k
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