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14-234-114. Payments from water revenues in lieu of taxes.
Arkansas Code — all titles (historical 2020) · legal_authorities
14-234-114. Payments from water revenues in lieu of taxes.
(a) The operating authority of any municipal waterworks system which was constructed or acquired pursuant to the authority contained in subchapter 2 of chapter 234 of this title shall have discretion to make payments from water revenues to the general fund of the municipality, in lieu of taxes, in return for police, fire, and health protection and in return for administrative and other services furnished the waterworks system by the municipality.
(b) The payments, if made, shall be an operation and maintenance expense of the waterworks system.
(c) In any calendar year, the payments authorized by this section shall not exceed the total of the following:
(1) A sum equal to five percent (5%) of gross income from water sales during the preceding calendar year; plus
(2) A sum equal to the amounts the municipality would have received from the waterworks system as property taxes for the preceding calendar year if the waterworks system's property had been privately owned and subject to tax by the municipality. For the purpose of this computation, the waterworks property shall be deemed to have an assessed value equal to twenty percent (20%) of book value as reflected by the waterworks system's usual accounting procedures.
(d) The payments shall be discretionary with the operating authority of the waterworks system and shall not be mandatory.
(e) Nothing contained in this section shall be construed as authorizing payments in violation of any trust indenture executed by municipalities to secure waterworks revenue bondholders. It shall be permissible for such indentures to limit or prohibit the payments authorized in this section.
(f) The payments authorized in this section shall not be made unless the muni
Source: Arkansas Code — historical release 78 (November 6, 2020) · 14-234-114
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:14-234-114
Source file: gov.ar.code.title.14.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 6602756d726bcdf3b77db29f183936ff5f4807eac48785db936fc784d14820a4
Source location: content.xml paragraph 48150
Stored source content
14-234-114. Payments from water revenues in lieu of taxes.
(a) The operating authority of any municipal waterworks system which was constructed or acquired pursuant to the authority contained in subchapter 2 of chapter 234 of this title shall have discretion to make payments from water revenues to the general fund of the municipality, in lieu of taxes, in return for police, fire, and health protection and in return for administrative and other services furnished the waterworks system by the municipality.
(b) The payments, if made, shall be an operation and maintenance expense of the waterworks system.
(c) In any calendar year, the payments authorized by this section shall not exceed the total of the following:
(1) A sum equal to five percent (5%) of gross income from water sales during the preceding calendar year; plus
(2) A sum equal to the amounts the municipality would have received from the waterworks system as property taxes for the preceding calendar year if the waterworks system's property had been privately owned and subject to tax by the municipality. For the purpose of this computation, the waterworks property shall be deemed to have an assessed value equal to twenty percent (20%) of book value as reflected by the waterworks system's usual accounting procedures.
(d) The payments shall be discretionary with the operating authority of the waterworks system and shall not be mandatory.
(e) Nothing contained in this section shall be construed as authorizing payments in violation of any trust indenture executed by municipalities to secure waterworks revenue bondholders. It shall be permissible for such indentures to limit or prohibit the payments authorized in this section.
(f) The payments authorized in this section shall not be made unless the municipality maintains water rates sufficient to provide the operating authority's estimated cost of operating and maintaining the waterworks system and sufficient to pay all other items specified in § 14-234-214.
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Arkansas Code — all titles (historical 2020) · legal_authorities
14-234-214. Rates — Disposition of surplus funds.
(a) Rates for resident and nonresident consumers of a municipal waterworks system shall be fixed by the legislative body of the municipality.
(b) The rates to be charged by the municipality must be adequate to:
(1) Pay the principal of and interest on all revenue bonds and revenue promissory notes as they severally mature;
(2) Make such payments into a revenue bond sinking fund as may be required by ordinance or trust indenture;
(3) Provide an adequate depreciation fund and to provide the operating authority's estimated cost of operating and maintaining the waterworks system.
(c) Rates fixed prior to the issuance of revenue bonds or notes may be reduced if authorized by the trust indenture or ordinance pertaining to the issuance. The rates shall not be reduced below the standards prescribed in this subchapter.
(d) If a municipality subject to the provisions of this subchapter proposes to make additions to its system, which additions are to be financed by the issuance of revenue bonds or revenue promissory notes, within eighteen (18) months of the effective date of the rate, then the legislative body of the municipality shall fix a rate to be effective immediately, which will be sufficient, in addition to the above requirements, to amortize the revenue bonds or revenue promissory notes with interest as they severally mature.
(e)(1) If any surplus is accumulated in the operation and maintenance fund of the waterworks system which shall be in excess of the operating authority's estimated cost of maintaining and operating the plant during the remainder of the fiscal year then-current and the cost of maintaining and operating the plant during the fiscal year next ensuing, the excess may be by the operating aut
Source: Arkansas Code — historical release 78 (November 6, 2020) · 14-234-214
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 14-234-214. This identifies an authority to review, not proof of applicability.