6265 RESOLUTION NO. 6,265
A RESOLUTION URGING THE ARKANSAS PUBLIC SERVICE COMMISSION
TO ESTABLISH A UNIFORM MUNICIPAL FRANCHISE CHARGE OF 4% ON
GROSS REVENUES; AND FOR OTHER PURPOSES.
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 PSC 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 PSC to establish a Uniform Municipal 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 PSC to adopt the 4%
Uniform Charge for all utilities in Arkansas.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY
OF LITTLE ROCK, 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.
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 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.
ADOPTED: January 2, 1980
ATTEST: (;„,er APPROVED:
City Clerk Mayor