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RESOLUTION 2010-8

A RESOLUTION SUPPORTING AMENDMENTS TO THE
CONSTITUTION OF THE STATE OF ARKANSAS: (1) TO
ELIMINATE CONSTITUTIONAL LIMITS ON INTEREST RATES
FOR GOVERNMENT BONDS AND LOANS, REVISE INTEREST
RATE LIMITS ON OTPIER LOANS, AND AUTHORIZE THE
FINANCING OF ENERGY SAVINGS PROJECTS - (ISSUE #2 AT
NOVEMBER 2010 GENERAL ELECTION); AND (2) TO MODIFY
AND IMPROVE THE FINANCING ALTERNATIVES AVAILABLE
TO THE STATE IN SUPPORT OF MAJOR ECONOMIC
DEVELOPMENT PROJECTS IN ARKANSAS (ISSUE #3 AT
NOVEMBER 2010 GENERAL ELECTION).
WHEREAS, provisions of the Arkansas Constitution that authorize bond financing by
Arkansas municipal governments, such as Amendment 62 for tax secured bonds and Amendment
65 for revenue bonds, have interest rate limits substantially below market requirements that
severely restrict and in many cases have halted the financing of essential projects to support the
public welfare of citizens of Arkansas cities and towns; and,
WHEREAS, the interest rate limits in Amendment 60 of the Arkansas Constitution
currently restrict options for consumer financing that may be offered by businesses operating
solely or primarily within the State of Arkansas, and that such limits have been preempted by
Federal legislation for businesses conducting interstate operations, and that such circumstances
produce a significant disadvantage for Arkansas businesses and limit the availability of
affordable financing for their consumer customers, which has a significant negative impact on
the economic vitality on Arkansas cities and towns where they operate; and,
WHEREAS, the financing authority for State support provided by Amendment 82 of the
Arkansas Constitution for major economic development projects should be more flexible, while
maintaining existing restrictions on the total State support that may be committed, in order to
facilitate the financing of more projects over a wider area of the State, thus enhancing the
economic benefit for the State and its citizens; and,
WHEREAS, the effectiveness of current state law on municipal and economic
development financing is unduly restrictive and in need of updating in order to promulgate
economic growth and to allow municipalities and the State to be better stewards of taxpayer
dollars.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF JOHNSON:
SECTION 1: That the Council does hereby express its support and endorsement for
Issues #2 and #3, which were referred by the 2009 Arkansas General Assembly as amendments
to the Arkansas Constitution, and strongly encourages voters to approve these proposals at the
November 2010 general election. These amendments will help city and town governments in

Arkansas secure timely financing for important public improvements in a cost effective manner,
improve stewardship and save taxpayer dollars, and stimulate and promote economic
development.
SECTION 2: Additionally, following approval at the November 2010 general election,
the Council also supports expeditious adoption by the Arkansas General Assembly in 2011 of
Arkansas statutory revisions required to implement the amendments.
SECTION 3: That this Resolution shall be in full force and effect from and after its
passage and approval.