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HomeMy WebLinkAbout2010-06-01 • ORDINANCE NO. 2010-6-1 AN ORDINANCE CALLING AND SETTING A DATE FOR A SPECIAL ELECTION ON THE QUESTIONS OF (1) THE LEVY OF A TEMPORARY LOCAL SALES AND USE TAX AT THE RATE OF ONE PERCENT (1.000%) WITHIN THE CITY FOR THE PURPOSE OF PAYING BOND DEBT SERVICE ASSOCIATED WITH THE COMMUNITY CENTER BONDS AND PARKS BONDS DESCRIBED HEREIN, WHICH TAX SHALL CEASE UPON RETIREMENT OF THE BONDS, (2) THE LEVY OF A PERMANENT LOCAL SALES AND USE TAX AT THE RATE OF ONE-QUARTER OF ONE PERCENT (0.250%) WITHIN THE CITY FOR THE PURPOSE OF PAYING BOND DEBT SERVICE AND PAYING EXPENSES ASSOCIATED WITH THE OPERATION, MAINTENANCE AND IMPROVEMENT OF THE COMMUNITY CENTER FACILITIES AND PARKS FACILITIES FINANCED BY THE BONDS AND EXISTING CITY PARKS, (3) THE ISSUANCE BY THE CITY OF NOT TO EXCEED $26,050,000 OF CAPITAL IMPROVEMENT BONDS FOR THE PURPOSE OF FINANCING THE ACQUISITION, CONSTRUCTION, EQUIPPING AND FURNISHING OF COMMUNITY CENTER FACILITIES, AND (4) THE ISSUANCE BY THE CITY OF NOT TO EXCEED $18,950,000 OF CAPITAL IMPROVEMENT BONDS FOR THE • PURPOSE OF FINANCING THE ACQUISITION, CONSTRUCTION, EQUIPPING AND FURNISHING OF PARKS FACILITIES; LEVYING A CITYWIDE LOCAL SALES AND USE TAX AT THE RATE OF ONE PERCENT(1.000%) TO BE PLEDGED TO THE PAYMENT OF THE BONDS, WHICH TAX SHALL CEASE UPON RETIREMENT OF THE BONDS; LEVYING A CITYWIDE LOCAL SALES AND USE TAX AT THE RATE OF ONE-QUARTER OF ONE PERCENT (0.250°/x) TO BE PLEDGED TO THE PAYMENT OF THE BONDS AS NEEDED AND FOR THE PAYMENT OF OPERATION, MAINTENANCE AND IMPROVEMENT EXPENSES AS DESCRIBED HEREIN; PRESCRIBING OTHER MATTERS PERTAINING THERETO; AND DECLARING AN EMERGENCY. WHEREAS, the City Council of the City of Batesville, Arkansas (the "City") has determined that there is a critical need for a source of revenue to finance the acquisition, construction, equipping and furnishing of(i) City community center facilities and improvements related thereto or in support thereof (the "Community Center Facilities") and (ii) City parks facilities and improvements related thereto or in support thereof(the "Parks Facilities"), and the expenses of operation, maintenance and improvement thereof-, and WHEREAS, Title 26, Chapter 75, Subchapter 2 of the Arkansas Code of 1987 Annotated (the "1981 City Sales and Use Tax Act") and Title 26, Chapter 75, Subchapter 3 of the Arkansas Code of 1987 Annotated (the "1975 City Sales and Use Tax Act") each authorize • the levy of citywide sales and use taxes of up to one percent (1.000%) in increments of one- eighth of one percent(0.125%); and 4821-8069-1718.2 • 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 • Bonds and Parks Bonds are to be secured by a pledge of and lien upon all of the receipts of the 1.000% Sales and Use Tax and the 0.250% Sales and Use Tax, all as authorized by Amendment 62, the Local Government Bond Act, the 1981 City Sales and Use Tax Act, and the 1975 City Sales and Use Tax Act; and WHEREAS, the purpose of this Ordinance is to call a special election on the issuance of the Community Center Bonds and Parks Bonds by the City and the levy of the 1.000% Sales and Use Tax and the 0.250% Sales and Use Tax, and for related purposes; NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Batesville,Arkansas: Section 1. That under the authority of the 1975 City Sales and Use Tax Act, and subject to approval by the electors of the City of all four Questions set forth in Section 7 below, there is hereby levied (i) a sales tax at the rate of one percent(1.000%) on the gross receipts from the sale at retail within the City of all items and services which are subject to taxation under the Arkansas Gross Receipts Act of 1941, as amended (Arkansas Code of 1987 Annotated §26-52- 101 et seq.), and(ii) an excise (or use) tax at the rate of one percent(1.000%) on the storage, use, distribution or other consumption within the City of tangible personal property or taxable services subject to taxation under the Arkansas Compensating Tax Act of 1949, as amended (Arkansas Code of 1987 Annotated §26-53-101 et seq.), on the sale price of the property or, in • the case of leases or rentals, on the lease or rental price (collectively, the "1.000% Sales and Use Tax"). The 1.000% Sales and Use Tax shall be levied, and the net collections received after deduction of the administrative charges of the State of Arkansas and required rebates shall be utilized only for the payment of debt service on the Community Center Bonds and Parks Bonds. The 1.000% Sales and Use Tax shall be levied and collected on the gross receipts, gross proceeds or sales price in the maximum amount allowed from time to time under Arkansas law, subject to rebates and limitations as required for certain "single transactions" as from time to time required by Arkansas statutes. The levy and collection of the 1.000% Sales and Use Tax shall commence on and as of such date as provided in the 1975 City Sales and Use Tax Act and shall cease upon retirement in full of all of the Community Center Bonds and Parks Bonds. Section 2. That under the authority of the 1981 City Sales and Use Tax Act, and subject to approval by the electors of the City of all four Questions set forth in Section 7 below, there is hereby levied (i) a sales tax at the rate of one-quarter of one percent (0.250%) on the gross receipts from the sale at retail within the City of all items and services which are subject to taxation under the Arkansas Gross Receipts Act of 1941, as amended (Arkansas Code of 1987 Annotated §26-52-101 et seq.), and (ii) an excise (or use) tax at the rate of one-quarter of one percent (0.250%) on the storage, use, distribution or other consumption within the City of tangible personal property or taxable services subject to taxation under the Arkansas Compensating Tax Act of 1949, as amended (Arkansas Code of 1987 Annotated §26-53-101 et seq.), on the sale price of the property or, in the case of leases or rentals, on the lease or rental price (collectively, the "0.250% Sales and Use Tax"). The 0.250% Sales and Use Tax shall be levied, and the net collections received after deduction of the administrative charges of the State • of Arkansas and required rebates shall be utilized for the payment of debt service on the Community Center Bonds and Parks Bonds, to the extent needed after application of the net collections of the 1.000% Sales and Use Tax, and shall thereafter be distributed only to the City 4821-8069-1718.2 3 • and utilized solely for the payment of expenses associated with the operation, maintenance and improvement of the Community Center Facilities, the Parks Facilities and existing City parks. The 0.250% Sales and Use Tax shall be levied and collected on the gross receipts, gross proceeds or sales price in the maximum amount allowed from time to time under Arkansas law, subject to rebates and limitations as required for certain "single transactions" as from time to time required by Arkansas statutes. The levy and collection of the 0.250% Sales and Use Tax shall commence on and as of such date as provided in the 1981 City Sales and Use Tax Act. Section 3. That under the authority of Amendment 62, the Local Government Bond Act and 12 U.S.C. §1831u(f) (as amended by §503 of H.R. 2346 and §553 of H.R. 2892), and subject to approval by the electors of the City of all four Questions set forth in Section 7 below, there is hereby authorized the issuance of the City's capital improvement bonds in the aggregate principal amount of not to exceed $26,050,000 (the "Community Center Bonds") for the purpose of financing all or a portion of the costs of acquisition, construction, equipping and furnishing of the Community Center Facilities. If approved by the electors of the City and issued, the Community Center Bonds shall be secured by a pledge of and a lien upon all of the receipts of the 1.000% Sales and Use Tax and all of the receipts of the 0.250% Sales and Use Tax, as authorized by the Local Government Bond Act. Section 4. That under the authority of Amendment 62, the Local Government Bond Act and 12 U.S.C. §1831u(f) (as amended by §503 of H.R. 2346 and §553 of H.R. 2892), and • subject to approval by the electors of the City of all four Questions set forth in Section 7 below, there is hereby authorized the issuance of the City's capital improvement bonds in the aggregate principal amount of not to exceed $18,950,000 (the "Parks Bonds") for the purpose of financing all or a portion of the costs of acquisition, construction, equipping and furnishing of the Parks Facilities. If approved by the electors of the City and issued, the Parks Bonds shall be secured by a pledge of and a lien upon all of the receipts of the 1.000% Sales and Use Tax and all of the receipts of the 0.250% Sales and Use Tax, as authorized by the Local Government Bond Act. Section 5. That if the issuance of both the Community Center Bonds and the Parks Bonds is approved by the electors of the City, such Community Center Bonds and Parks Bonds may thereafter be issued in one or more series from time to time in an aggregate principal amount not to exceed the respective principal amounts approved by the City's electors. Section 6. That there be, and there is hereby called, a special election to be held on Tuesday, August 10, 2010, at which election there shall be submitted to the electors of the City the questions of the levy of the 1.000% Sales and Use Tax, the levy of the 0.250% Sales and Use Tax, the issuance of the Community Center Bonds, and the issuance of the Parks Bonds. Section 7. That the questions shall be placed on the ballot for the special election in substantially the following forms: • 4821-8069-1718.2 4 • SPECIAL ELECTION ON CITY SALES AND USE TAX LEVIES AND BOND ISSUANCE If approved in Question One below, there will be levied a one percent (1.000%) citywide sales and use tax (the "1.000% Sales and Use Tax"), the net collections of which remaining after the State of Arkansas deducts its administrative charges and after required rebates will be utilized solely for the payment of debt service on the Community Center Bonds (defined in Question Three below) and the Parks Bonds (defined in Question Four below). The levy and collection of the 1.000% Sales and Use Tax shall commence on and as of such date as provided by Arkansas law and shall cease upon retirement in full of the Bonds. If approved in Question Two below, there will be levied a one-quarter of one percent (0.250%) citywide sales and use tax (the "0.250% Sales and Use Tax"), the net collections of which remaining after the State of Arkansas deducts its administrative charges and after required rebates will be utilized for the payment of debt service on the Community Center Bonds and Parks Bonds, to the extent needed after application of the net collections of the 1.000% Sales and Use Tax, and shall thereafter be distributed to the City and utilized solely for the payment of expenses associated with the operation, maintenance and improvement of existing City parks and the proposed Community Center Facilities and Park Facilities to be financed with proceeds of the Community Center Bonds and Parks Bonds. The levy and collection of the 0.250% Sales and Use Tax shall commence on and as of such date as provided by Arkansas law. Unless all four questions for the • purposes described below are approved, neither the 1.000% Sales and Use Tax nor the 0.250% Sales and Use Tax will be levied, and the Community Center Bonds and the Parks Bonds will not be issued. Question One (1.000% Temporary Sales and Use Tax): There is submitted to the qualified electors of the City of Batesville, Arkansas, the question of the levy of a one percent (1.000%) citywide sales and use tax under Title 26, Chapter 75, Subchapter 3 of the Arkansas Code of 1987 Annotated (the "1.000% Sales and Use Tax"), the net collections of which will be utilized solely for the payment of debt service on the Community Center Bonds (defined in Question Three below) and the Parks Bonds (defined in Question Four below). The levy and collection of the 1.000% Sales and Use Tax shall commence on and as of such date as provided by Arkansas law and shall cease upon retirement in full of the Community Center Bonds and the Parks Bonds. Vote on the question by placing an "X" in one of the squares following the question, either for or against: FOR the adoption of a one percent (1.000%) Sales and Use Tax within the City of Batesville, Arkansas, the net collections of such tax to be used only for the purposes described above, and such tax to expire upon retirement in full of the Community Center Bonds and Parks Bonds described in Questions Three and • Four below..................................................................................0 4821-8069-1718.2 5 • AGAINST the adoption of a one percent (1.000%) Sales and Use Tax within the City of Batesville, Arkansas, the net collections of such tax to be used only for the purposes described above, and such tax to expire upon retirement in full of the Community Center Bonds and Parks Bonds described in Questions Three and Fourbelow..................................................................................❑ Question Two (0.250% Permanent Sales and Use Tax): There is submitted to the qualified electors of the City of Batesville, Arkansas, the question of the levy of a one-quarter of one percent (0.250%) citywide sales and use tax under Title 26, Chapter 75, Subchapter 2 of the Arkansas Code of 1987 Annotated (the "0.250% Sales and Use Tax"), the net collections of which will be utilized for the payment of debt service on the Community Center Bonds (defined in Question Three below) and the Parks Bonds (defined in Question Four below), to the extent needed after application of the net collections of the 1.000% Sales and Use Tax (defined in Question One above), and shall thereafter be distributed only to the City and shall be utilized solely for the payment of expenses associated with the operation, maintenance and improvement of existing City parks and the proposed City community center and parks facilities and improvements related thereto or in support thereof to be financed with proceeds of the Community Center Bonds and Parks Bonds. The levy and collection of the • 0.250% Sales and Use Tax shall commence on and as of such date as provided by Arkansas law. Vote on the question by placing an "X" in one of the squares following the question, either for or against: FOR the adoption of a one-quarter of one percent (0.250%) Sales and Use Tax within the City of Batesville, Arkansas, the net collections of such tax to be distributed to the City and used for the purposes described above ..................❑ AGAINST the adoption of a one-quarter of one percent (0.250%) Sales and Use Tax within the City of Batesville, Arkansas, the net collections of such tax to be distributed to the City and used for the purposes described above...................❑ Question Three (Community Center Bonds): There is submitted to the qualified electors of the City of Batesville, Arkansas, the question of the issuance of capital improvement bonds in principal amount not to exceed $26,050,000 and bearing interest at rates not to exceed 7.90% (the "Community Center Bonds") pursuant to Title 14, Chapter 164, Subchapter 3 of the Arkansas Code of 1987 Annotated (the "Local Government Bond Act") for the purpose of financing all or a portion of the costs of the acquisition, construction, equipping and furnishing of City community center facilities and • improvements, which may include meeting/convention space, basketball courts, indoor competition swimming facilities, therapy pool, indoor walking track, senior citizens area, theatre/auditorium style lecture center, other similar 4821-8069-1718.2 6 • amenities, and any necessary utility, road and parking improvements related thereto. If the issuance of the Community Center Bonds is approved, the Community Center Bonds shall be secured by a pledge of and lien upon all of the receipts of the 1.000% Sales and Use Tax described in Question One above and all of the receipts of the 0.250% Sales and Use Tax described in Question Two above. Vote on the question by placing an "X" in one of the squares following the question, either for or against: FOR the issuance of Community Center Bonds in principal amount not to exceed $26,050,000 and bearing interest at rates not to exceed 7.90% for the purpose of financing all or a portion of the costs of the acquisition, construction, equipping and furnishing of City community center facilities and improvements, which may include meeting/convention space, basketball courts, indoor competition swimming facilities, therapy pool, indoor walking track, senior citizens area, theatre/auditorium style lecture center, other similar amenities, and any necessary utility, road and parking improvements related thereto ...............................❑ AGAINST the issuance of Community Center Bonds in principal amount not to exceed $26,050,000 and bearing interest at rates not to exceed 7.90% for the purpose of financing all or a portion of the costs of the acquisition, construction, • equipping and furnishing of City community center facilities and improvements, which may include meeting/convention space, basketball courts, indoor competition swimming facilities, therapy pool, indoor walking track, senior citizens area, theatre/auditorium style lecture center, other similar amenities, and any necessary utility,road and parking improvements related thereto..............El Question Four (Parks Bonds): There is submitted to the qualified electors of the City of Batesville, Arkansas, the question of the issuance of capital improvement bonds in principal amount not to exceed $18,950,000 and bearing interest at rates not to exceed 7.90% (the "Parks Bonds") pursuant to Title 14, Chapter 164, Subchapter 3 of the Arkansas Code of 1987 Annotated (the "Local Government Bond Act") for the purpose of financing all or a portion of the costs of the acquisition, construction, equipping and furnishing of City parks facilities and improvements, which may include a skate board park, an outdoor water and splash park, and a consolidated recreation facility consisting of baseball, softball and soccer playing and practice fields, and any necessary utility, road and parking improvements related thereto. If the issuance of the Parks Bonds is approved, the Parks Bonds shall be secured by a pledge of and lien upon all of the receipts of the 1.000% Sales and Use Tax described in Question One above and all of the receipts of the 0.250% Sales and Use Tax described in Question Two above. • Vote on the question by placing an "X" in one of the squares following the question, either for or against: 4821-8069-1718.2 7 • FOR the issuance of Parks Bonds in principal amount not to exceed $18,950,000 and bearing interest at rates not to exceed 7.90% for the purpose of financing all or a portion of the costs of the acquisition, construction, equipping and furnishing of City parks facilities and improvements, which may include a skate board park, an outdoor water and splash park, and a consolidated recreation facility consisting of baseball, softball and soccer playing and practice fields, and any necessary utility, road and parking improvements related thereto .................................❑ AGAINST the issuance of Parks Bonds in principal amount not to exceed $18,950,000 and bearing interest at rates not to exceed 7.90% for the purpose of financing all or a portion of the costs of the acquisition, construction, equipping and furnishing of City parks facilities and improvements, which may include a skate board park, an outdoor water and splash park, and a consolidated recreation facility consisting of baseball, softball and soccer playing and practice fields, and any necessary utility, road and parking improvements related thereto..............El Section 8. That the election shall be held and conducted and the vote canvassed and the results declared under the law and in the manner now provided for Arkansas municipal elections unless otherwise provided in the Local Government Bond Act, the 1981 City Sales and Use Tax Act and the 1975 City Sales and Use Tax Act, and only qualified voters of the City shall have the right to vote at the election. The City Clerk is hereby directed to give notice of the special • election by one advertisement in a newspaper of general circulation within the City, the publication to be not less than ten(10) days prior to the date of the election. Section 9. That a copy of this Ordinance shall be given to the Arkansas Secretary of State and the Independence County Board of Election Commissioners so that the necessary election officials and supplies may be provided. A certified copy of this Ordinance shall also be provided to the Director of the Department of Finance and Administration of the State of Arkansas as soon as practical. Section 10. That the results of the special election shall be proclaimed by the Mayor, and his proclamation shall be published one time in a newspaper of general circulation within the City. The proclamation shall advise that the results as proclaimed shall be conclusive unless attacked in the Circuit Court of Independence County within thirty (30) days after the date of publication of the proclamation. Section 11. That the Mayor and the City Clerk, for and on behalf of the City, be, and they hereby are authorized and directed to do any and all things necessary to call and hold the special election as herein provided and, if the issuance of both the Community Center Bonds and the Parks Bonds are approved by the electors, and the levies of the 1.000% Sales and Use Tax and the 0.250% Sales and Use Tax are approved by the electors, to cause the 1.000% Sales and Use Tax and the 0.250% Sales and Use Tax to be collected in accordance with the Local Government Bond Act, the 1981 City Sales and Use Tax Act and the 1975 City Sales and Use Tax Act, and to perform all acts of whatever nature necessary to carry out the authority conferred • by this Ordinance. 4821-8069-1718.2 8 • Section 12. That the City considers this Ordinance to be its declaration of official intent to issue the Community Center Bonds and the Parks Bonds and to make reimbursement with a portion of the proceeds thereof for all original expenditures incurred in the acquisition, construction, equipping and furnishing of the Community Center Facilities and the Parks Facilities between the date that is sixty (60) days prior to the date of this Ordinance and the date a series of Bonds is issued for such purposes, plus a de minimis amount and preliminary expenditures, as such terms are defined in Section 1.150-2(f) of the Federal Income Tax Regulations. Section 13. That Kutak Rock LLP is hereby engaged as Bond Counsel and Crews & Associates, Inc. is hereby engaged as Underwriter with respect to the issuance of the Community Center Bonds and the Parks Bonds. The fees and expenses of Bond Counsel and the Underwriter shall be a cost of issuance of the Bonds to be paid with Bond proceeds. Section 14. That because the authority for the Prior Tax was not designated in the petition referring the Prior Tax to the electors of the City, the City now hereby designates such authority as the 1981 Sales and Use Tax Act. Section 15. That the provisions of this Ordinance are hereby declared to be separable and if any provision shall for any reason be held illegal or invalid, such holding shall not affect the validity of the remainder of this Ordinance. • Section 16. That all ordinances and parts thereof in conflict herewith are hereby repealed to the extent of such conflict. Section 17. That it is hereby ascertained and declared that there is a critical need for a continuing source of revenue to finance the Community Center Facilities and the Parks Facilities and the operation, maintenance and improvement thereof, all in order to promote and protect the health, safety and welfare of the inhabitants of the City. It is, therefore, declared that an emergency exists and this Ordinance being necessary for the immediate preservation of public peace, health and safety shall be in force and effect immediately from and after its passage. PASSED AND APPROVED this 8th day of June, 2010. APPROVED: By: Mayor ATTEST: By: 0, � 4Y\ 41'I' • City Clerk (S E A L) 4821-8069-1718.2 9 • CERTIFICATE The undersigned, City Clerk of Batesville, Arkansas, hereby certifies that the foregoing is a true and perfect copy of an Ordinance adopted at a regular meeting of the City Council of the City of Batesville,Arkansas, held at 5:30 p.m. on June 8, 2010. DATED: June 8, 2010 1.J.Ii vuJ - City Clerk 4821-8069-1718.2 10