RES NO 02-05-1980 2- S -V1Yo
CITY OF VAN BUREN, ARKANSAS
RESOLUTION NO. -1980
WHEREAS, the Public Service Commission has ruled against the
City of Van Buren, Arkansas, and the City of Ft. Smith,
Arkansas, and
WHEREAS, they have ruled that the cities of Arkansas may levy a
franchise tax, but no part of it will be charged against
the base rate, and
WHEREAS, they stated in their order that their current practice
followed by our regulated utilities is to include in the
customer's base rate a maximum amount equal to four per
cent (4%) of gross receipts which is not followed in the
orders now in effect, and
WHEREAS, why would we have petitioned for four per cent (4 if
we already had such authority, and
WHEREAS, Acts of 1935, No. 324 codified as 73 -208a, gives cities
the right "to determine the quality and character of each
kind of product or service to be furnished or rendered by
any public utility within said city or town, and all other
terms and conditions upon which such public utility may be
,permitted to occupy the streets, highways or other public
places within the municipality, and such ordinance or res-
olution shall be deemed prima facie reasonable and
WHEREAS, Act March 9, 1975, No. 1, Paragraph 14 as amended and cod-
ified as 19 -2139 "may grant to such person, persons, or
company for a time which may be agreed on for the privilege,
exclusive or otherwise, of using the street, alleys, and
such public grounds of such Municipality for such purpose,
on such rates, charges and terms as may be agreed upon, and
WHEREAS, in contervention of state statutes, the Public Service
Order reads, "we define a municipal utility franchise tax
or fee levied on a public utility which is not levied on
all businesses within the taxing authority's jurisdiction
on equal basis with tax imposed on public utility companies,
and
WHEREAS, in it's order U -3013, Order No. 4, "it was established during
the hearing that revenues from industrial customers were
sometimes excluded when determining the utility's annual
assessment. If such is the language of a municipal ordinance
establishing an assessment, then such fees shall only be
collected from those customer classes as referenced in the
supporting ordinance. and
A
d
WHEREAS, at the hearing held before the Commission in U -1763, dated
July 26, 1976, in approving a Standard Calculation of Mu-
nicipal Occupation Taxes and Other Relief stated, "This
discrimination can be eliminated by authorizing and directing
the Company to pass back to domestic and commercial customers
within a municipality any amount of municipal taxes in excess
of a uniform and reasonable level, and
WHEREAS, that the end result is that the cities of Arkansas will
receive nothing for the right of way furnished to utilities
unless said charge is included in the Base Rate, and
WHEREAS, that there will still be included in said Base Rate the
charges which the utilities are forced to pay for right of
way which the utilities have to purchase, and
WHEREAS, the people of Van Buren, Arkansas, should not be required
to pay some right of way charges and receive no consideration
for the right of way furnished by the City of Van Buren, AR.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VAN BUREN,
ARKANSAS,
That the City Attorney of the City of Van Buren, Arkansas,
is authorized and directed to request a rehearing on the
order issued and /or appeal said order to the court.
PASSED AND APPROVED THIS 18th DAY OF February 19 80
44
MAYOR
ATTESTED:
0 C TY CLERK-TRE7SURER