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1 <br /> RESOLUTION NO. 91-4-2 <br /> A RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK TO ENTER INTO AN AGREE- <br /> MENT WITH INDEPENDENCE COUNTY FOR IMPROVEMENTS TO THE WATER SYSTEM AND FOR <br /> OTHER PURPOSES. <br /> WHEREAS, The City is the County seat of the County, the largest munici- <br /> pality in the county and located in the central portion of the County; and <br /> WHEREAS, the City operates its waterworks system (the "System") , which <br /> provides treated water to approximately 21,632 consumers, approximately 12,445 <br /> of whom live outside the City, or connect to the System at points outside the <br /> 'City; and <br /> WHEREAS, Recent proposed improvements to the System have made necessary <br /> increases in the rates charged for services of the System, and the necessity <br /> for further improvements, including new treatment facilities (the "Improve- <br /> ments") , will result in further rate increases if such Improvements are financed <br /> on the basis of System revenues; and <br /> • WHEREAS, The construction of the Improvements is essential to the continu- <br /> ed provision of treated water to consumers who rely upon the System, both with- <br /> in and without the City, ; and <br /> WHEREAS, The County and the City desire to avoid or minimize further rate <br /> increases for the System, for comsumers within and without the City, and if <br /> possible, to reduce System rates. <br /> BE IT THEREFORE RESOLVED: That the City will ask the County to propose to <br /> , the electors of the County the issuance of the County' s bonds, under Arkansas <br /> code of 1987 Annotated, Title 14, Chapter 164, Subchapter 3, secured by a <br /> pledge of the collections of a County sales and use tax levied at the rate of <br /> of 1% per annum, for the purpose of financing the construction of the Improve- <br /> ments. <br /> Subject to approval by the electors of the County, and to favorable econo- <br /> mic conditions, the County would sell and issue the Bonds and apply the proceeds <br /> to the construction of the Improvements, under the control of the City and the <br /> officials charged with management of the System., appropriate <br /> IThe City agrees to own and operate and maintain the Improvements, as a part <br /> of the System, to operate the System for the use and benefit of the consumers <br /> who rely upon it, both within and without the City, and to charge rates for the <br />