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c RESOLUTION NO.A010-10— 1—K 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 OTHER 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 (W 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, WTHEIF'71- AQ exp n,' a � 4;...,.. 1 1.1 1.. '1..1 1,. ' is th. provide .i,i.i. v, -iNuilueu i,r`.�:i.:aCl.L� vp LLViLJ .)LLv uAU L) UVaiLCL LV Lv1 �lrUJ L WaL can jJrV V1UG savings in energy cons for Arkansas municipal governments; 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 BATESVILLE: