0734} ~
RESOLUTIOfd ~~ / ~ /
4JHEREAS, 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
`~ ~ '~JHEREAS, the Arkansas Public Service Commission has the right
ar,d duty to prohibit discrimination between utility ratepayers and
between municipalities, and
WHEREAS, in recognition of this problem, the PSC on March 2,
1979, did in docket U-3013 set this matter for public hearing and
such public hearing vas 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 PSC to establish a UniforrriP~1unicipal-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
~Ilr WHEREAS, at the 45th Annual Convention of the Arkansas Municipal
League held in Hot Springs on TJovember ~, 1979, the official delegates
from cities and towns all over Arkansas did unanimously urge the PSC
to adopt the 4% Uniform Charge for all utilities in Arkansas.
PJOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
WEST MEP~IPHIS, 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. uJe sincerely believe that anything other than a
percentage is inequitable and any percentage less than 4% is
inedequate for municipal needs.
~r 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
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private corporation and would discriminate against all other
businesses, individual taxpayers and against P4unicipal Governments.
Section 4. That vie further urge the PSC 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.
hr.~ PASSED AVD APPROVED thi s ~ day of ~i~J/~'ty d
1980.
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