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• WHEREAS, pursuant to an initiated petition of the citizens of the City, there was previously levied a one-eighth of one percent(0.125%) sales and use tax (the "Existing Tax") for the purpose of repairing and replacing fire fighting vehicles and equipment and building and furnishing a new fire station and repairing existing fire stations; and WHEREAS, Amendment 62 to the Constitution of the State of Arkansas ("Amendment 62") and Title 14, Chapter 164, Subchapter 3 of the Arkansas Code of 1987 Annotated (the "Local Government Bond Act") authorize the issuance of bonds by cities to finance capital improvements such as the Community Center Facilities and the Parks Facilities, which bonds may be secured by the pledge of the receipts of the citywide sales and use taxes prescribed by the 1981 City Sales and Use Tax Act and the 1975 City Sales and Use Tax Act; and WHEREAS, the City Council of the City has additionally determined that the completion of the Community Center Facilities and the Park Facilities will require an additional source of revenue to operate, maintain and improve said facilities and existing parks facilities; and WHEREAS, the American Recovery and Reinvestment Act of 2009 ("ARRA") authorizes the issuance of various new types of indebtedness by local governmental entities on or before December 31, 2010, including obligations commonly known as Build America Bonds, the interest component of which is subsidized by payments from the U.S. Treasury; and • WHEREAS, it has been determined that the use of Build America Bonds for the purpose of financing the Community Center Facilities and the Parks Facilities would be economically advantageous to the City and would help further the purposes of ARRA by stimulating the economy of the City; and WHEREAS, if approved by the electors of the City, a temporary one percent (1.000%) citywide sales and use tax will be levied under the authority of the 1975 City Sales and Use Tax Act (the "1.000% Sales and Use Tax"), all of the net receipts of which will be utilized by the City for the payment of debt service on the Community Center Bonds and Parks Bonds (defined below), such 1.000% Sales and Use Tax to terminate upon retirement of the Bonds; and WHEREAS, if approved by the electors of the City, a permanent one-quarter of one percent (0.250%) citywide sales and use tax will be levied under the authority of the 1981 City Sales and Use Tax Act(the "0.250% Sales and Use Tax"), all of the net receipts of which will be utilized by the City for the payment of debt service on the Community Center Bonds and Parks Bonds (defined below) and for payment of expenses associated with the operation, maintenance and improvement of the proposed Community Center Facilities and Parks Facilities and existing City parks; and WHEREAS, if approved by the electors of the City, the City has determined to issue (i) its capital improvement bonds in principal amount not to exceed $26,050,000 for the purpose of financing the acquisition, construction, equipping and furnishing of the Community Center • Facilities (the "Community Center Bonds") and (ii) its capital improvement bonds in principal amount not to exceed $18,950,000 for the purpose of financing the acquisition, construction, equipping and furnishing of the Parks Facilities (the "Parks Bonds"), which Community Center 4821-8069-1718.2 2