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HomeMy WebLinkAbout2023-05-09-AGENDAN COUNCILMEMBERS Rick Elumbaugh, Mayor Denise Johnston, Clerk Timothy Meitzen, Attorney A HISTORIC TREASURE. A `gNSAS' OLDEST AGENDA CITY OF BATESVILLE CITY COUNCIL 500 EAST MAIN BATESVILLE, AR 72501 May 9, 2023 5:30 P.M. Brittany Bennett Thomas Bryant Scott Fredricks Julie Hinkle Paige Hubbard Fred Krug Douglas Matthews Chris Poole 1. CALL TO ORDER 2. INVOCATION 3. ROLL CALL BY CITY CLERK 4. APPROVAL OF MINUTES 5. APPROVAL OF AGENDA 6. COMMENTS FROM CITIZENS 7. UNFINISHED BUSINESS A) Second reading of an ordinance to amend the properties included in the Batesville Commercial Historic District 8. NEW BUSINESS A) Police Department Report B) Engineer's Report C) Fire Department Report D) Public Works/Sanitation Report E) Proclamation for National Fentanyl Awareness Day F) Consider an ordinance for the approval of an application for private club permit for Club Stella on Main G) Consider a revised version of an ordinance to amend the properties included in the Batesville Commercial Historic District. H) Consider an ordinance amending ordinance no 2011-12-05 in order to authorize the net collections of the 0.5% Sales and Use Tax levied within the City of Batesville and secure the repayment of bonds approved by the voters 1) Consider an ordinance calling for a special election in the city of Batesville on the questions of issuing bonds under Amendment No. 62 to the Constitution of the State of Arkansas for the purpose of financing and refinancing all or a portion of the costs of capital improvements. J) Consider an ordinance calling for a special election in the city of Batesville on the question of issuing bonds under the Amendment No. 62 to the Constitution of the State of Arkansas for the purpose of financing all or a portion of the costs of capital improvements: levying a one percent (1%) Sales and Use Tax to commence on April 1, 2024 for the purpose of retiring such bonds. K) Executive Session L) Financial report 9. COMMENTS FROM THE MAYOR 10. LIAISON REPORTS 11. COMMENTS FROM COUNCIL MEMBERS (by roll call) 12. ADJOURNMENT "City of Hospitality" 0 YAwrry"w� e&44 INDEPENDENCE COUNTY, ARKANSAS Independence County Hometown Wellness Coalition to perform a Call to Action and observe May 9`h as National Fentanyl Awareness Day. WHEREAS: The fentanyl epidemic in the United States is a serious public safety threat, with illicit fentanyl poisoning rates currently reaching the highest level in history and fentanyl poisoning now the number one cause of death among Americans ages 18 to 45; and WHEREAS: Fentanyl is a highly addictive synthetic opioid that is 100 times more potent than morphine. According to the United States Drug Enforcement Administration (DEA), illicit fentanyl is being manufactured with other illicit drugs to increase potency, sold as powders and mixed with other illicit drugs, and is increasingly pressed into counterfeit pills made to look like legitimate pharmaceutical drugs; and WHEREAS: Fentanyl-contaminated drugs are killing people across our nation every day. Drug toxicity deaths have shown a dramatic increase nationally, with illicit fentanyl being the primary reason for the increase. It is becoming more common for individuals to use a pill or other drugs without knowing it contains fentanyl; and WHEREAS: The DEA is seeing a nationwide spike in fentanyl-related mass -poisoning events involving three or more poisonings occurring close in time at the same location. The opioid epidemic is so prominent that the DEA issued its first public safety alert in over six years, seeking to raise awareness of a significant nationwide surge in counterfeit pills; and WHEREAS: Fentanyl is a growing crisis that poses a threat to public health and the well-being of the people of Arkansas. Affected families across the nation are united in bringing prevention and awareness on this day, and Batesville, Arkansas joins their efforts to save lives; and WHEREAS: The Arkansas Department of Human Services provides information about accessing naloxone, the medication also known as Narcan that can reverse opioid overdoses. The Arkansas Department of Health's website also lists Statewide Community -based Organizations that provide Naloxone overdose training and kits for free. There is also a free app available to download NARCANSAS, which provides an opioid overdose resource containing tools that will help someone administer the drug naloxone in the moment of a suspected opioid overdose. NOW, THEREFORE, I, Rick Elumbaugh, Mayor of Batesville, do hereby proclaim Tuesday, May 9th as call to action: NATIONAL FENTANYL AWARENESS DAY "4/ cl.,1w ki't % a4�6x ORDINANCE NO. AN ORDINANCE FOR THE APPROVAL OF AN APPLICATION FOR PRIVATE CLUB PERMIT WHEREAS, Laurie Gottschalk, on behalf of a private club to be known as "Club Stella on Main, Inc.", is making application to the Arkansas Alcohol Beverage Control Division for a private club permit for a business to be located at 250 E. Main, Batesville, Arkansas 72501; and WHEREAS, under the provisions of Act 1112 of 2017 as enacted by the Arkansas General Assembly, it is necessary for the City Council for the City where the proposed private club will be located to approve the application before it is submitted to the Arkansas Alcohol Beverage Control Division; and WHEREAS, all applicable laws, rules and regulations have been complied with in presenting this Ordinance to the City Council of the City of Batesville, Arkansas. NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Batesville, Arkansas, that: The application of Laurie Gottschalk for a private club to be known as "Club Stella on Main, Inc.," to be located at 250 E. Main, Batesville, Arkansas 72501, is approved, and the private club to be known as "Club Stella on Main, Inc.," shall be entitled to operate its business as a private club at 250 E. Main, Batesville, Arkansas 72501 subject to the approval of the Arkansas Alcoholic Beverage Control Division. EMERGENCY CLAUSE: It being necessary to protect and preserve the health, safety and welfare of the people of the City of Batesville, an emergency is declared to exist and this Ordinance shall be in full force and effect from and after its passage. PASSED and APPROVED this _ day of April, 2023. APPROVED The City of Batesville Rick Elumbaugh, Mayor ATTEST: Denise M. Johnston, City Clerk ORDINANCE NO. AN ORDINANCE TO AMEND THE PROPERTIES INCLUDED IN THE BATESVILLE COMMERCIAL HISTORIC DISTRICT; AND FOR OTHER PURPOSES. WHEREAS, it is the duty of the Batesville Downtown Historic District Commission to safeguard the city's historic, aesthetic, and cultural heritage, as embodied and reflected in such areas; and WHEREAS, the Historic District Commission has the power to recommend to the City Council the adoption of ordinances designating areas as having special historic community or architectural value as "Historic District" and add these historic districts to the provisions of this ordinances; and, WHEREAS, the original boundary of the Batesville Downtown Historic District conformed to the boundary of the National Register for said district, as per state law; and WHEREAS, the boundary of said National Register has recently expanded, therefore the Historic District Commission is recommending to the city that the Historic District be expanded in order to conform with said Register with the exception of property on the southeast side of College on the northeast half of Block 35 (the old bank building on the corner of College and Broad); and, WHEREAS, the City wishes the Historic District Commission's boundary to remain in conformity with the National Register boundary with the exception of the property on the southeast side of College. NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BATESVILLE, ARKANSAS AS FOLLOWS: Section 1: That Ordinance No. 2009-4-2, Sec 2., Titled "Batesville downtown commercial Historic District", and Codified as 7.60.02 is hereby amended as follows: The Historic District shall consist of that area of the city shown on Exhibit 1, which is attached hereto and made a part hereof. The downtown commercial Historic District in Batesville, Arkansas is described as follows: All properties facing Main and Central in Block 13; all properties facing Main in Block 14; all of Block 15; all properties facing Main in Blocks 16,17,18,19, 20, and Block 21; more specifically the following parcels in the Old Town addition: Block 13, Lots 5-10; Block 14, Lots 1-5; Block 15, Lots 1-10; Block 16, Lots 6-10; Block 17, Lots 5-8; Block 18, Lots 1-4; Block 19, Lots 1-5; Block 20, Lots 6-10; and Block 21, Lots 5-8. Section 2: That the City of Batesville Zoning Map shall be amended to reflect the description of the Historic District contained in this ordinance. Section 3: That all ordinances and parts thereof in conflict herewith are hereby repealed to the extent of such conflict. Section 4: If any portion or portions of this ordinance are deemed or held to be invalid, such invalidity shall not affect the remaining portions of this ordinance. IT IS SO ORDAINED. IN WITNESS WHEREOF, we have set our hands this , day of , 2023. Approved: ATTEST: Denise M. Johnston, Clerk Rick Elumbaugh, Mayor W W ,Ilk co a M o in CI � N 1� m 1 0 . 5 TH ST. r wmi = MEN I wk MR = mm� N. BROAD T. S. BR AD ST. 10 1,D ui c0 O U N ui W ~ O I I I I N. CENTRAL AVE. S. CENTRAL AVE. 10 W ''1 II ' � I I I I M CY'D m M Q I I (Wn I N cu Q m V I I11 I I W N. S E ST. C) Z U� I I I I I I I I IR �I co M, 3 J LL! C) 00 ORDINANCE NO. AN ORDINANCE AMENDING ORDINANCE NO. 2011-12-05 IN ORDER TO AUTHORIZE THE NET COLLECTIONS OF THE 0.5% SALES AND USE TAX LEVIED WITHIN THE CITY OF BATESVILLE, ARKANSAS BY ORDINANCE NO. 2011-12-05 TO BE USED TO PAY AND SECURE THE REPAYMENT OF BONDS APPROVED BY THE VOTERS AND ISSUED BY THE CITY FROM TIME TO TIME TO FINANCE AND REFINANCE ALL OR A PORTION OF THE COSTS OF CAPITAL IMPROVEMENTS; AND PRESCRIBING OTHER MATTERS PERTAINING THERETO. WHEREAS, pursuant to Ordinance No. 2011-12-05, adopted December 27, 2011 ("Ordinance No. 2011-12-05"), and an election held on March 13, 2012, the City of Batesville, Arkansas (the "City") has levied a City-wide 0.5% sales and use tax (the "Tax"); and WHEREAS, the net collections of the Tax are currently used by the City to pay and secure the repayment of bonds approved by the voters and issued by the City to finance park and recreational improvements; and WHEREAS, the City Council has determined that it would be in the best interest of the City to issue bonds (the 'Bonds") to refund the City's Sales and Use Tax Bonds, Series 2012 and to finance additional park and recreational facilities and improvements and any necessary land acquisition, demolition, furnishings, equipment and parking, lighting, landscaping, street, drainage and utility improvements related thereto (the "Park and Recreational Improvements") and to secure the Bonds with a pledge of the net collections of the Tax; and WHEREAS, it is necessary to amend Ordinance No. 2011-12-05 to change the purposes for which the net collections of the Tax may be used in order for the Bonds to be secured by such collections; NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Batesville, Arkansas: Section 1. The title of Ordinance No. 2011-12-05 is hereby amended to read as follows: "AN ORDINANCE PROVIDING FOR THE LEVY OF A ONE-HALF OF ONE PERCENT (0.5%) SALES AND USE TAX WITHIN THE CITY OF BATESVILLE, ARKANSAS TO PAY AND SECURE THE REPAYMENT OF BONDS ISSUED BY THE CITY FROM TIME TO TIME TO FINANCE AND REFINANCE ALL OR A PORTION OF THE COSTS OF CAPITAL IMPROVEMENTS; AND PRESCRIBING OTHER MATTERS PERTAINING THERETO." Section 2. The WHEREAS clauses of Ordinance No. 2011-12-05 are hereby amended to read as follows: "WHEREAS, the City Council of the City of Batesville, Arkansas (the "City") has determined that the City is in need of a source of revenue to pay and secure the repayment of bonds approved by the voters and issued by the City from time to time for the purpose of financing and refinancing all or a portion of the costs of capital improvements ("Capital Improvement Bonds"); and WHEREAS, Title 26, Chapter 75, Subchapter 2 of the Arkansas Code of 1987 Annotated (the "Authorizing Legislation") provides for the levy of city-wide sales and use taxes at the rate of 0.125%, 0.25%, 0.5%, 0.75% or 1 %, or any combination thereof; and WHEREAS, the purpose of this Ordinance is to levy a city-wide sales and use tax at the rate of 0.5%, the net collections of which will be used to pay and secure the repayment of Capital improvement Bonds;" Section 3. Section 1 of Ordinance No. 2011-12-05 is hereby amended to read as follows: "Section 1. Under the authority of the Authorizing Legislation, there is hereby levied a one-half of one percent (0.5%) tax on the gross receipts from the sale at retail within the City of all items which are subject to the Arkansas Gross Receipts Act of 1941, as amended (A.C.A. §§26-52-101, et seq.), and the imposition of an excise (or use) tax on the storage, use, distribution or other consumption within the City of tangible personal property subject to the Arkansas Compensating Tax Act of 1949, as amended (A.C.A. §§26-53-101, et seq.), at a rate of one-half of one percent (0.5%) of the sale price of the property or, in the case of leases or rentals, of the lease or rental price (collectively, the "Sales and Use Tax"). The 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 by Arkansas law, subject to rebates and limitations as from time to time required by Arkansas statutes for certain single transactions." Section 4. Section 2 of Ordinance No. 201 1-12-05 is hereby amended to read as follows: "Section 2. The 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 used by the City to pay and secure the repayment of Capital Improvement Bonds and all obligations of the City with respect thereto; provided, however, that any amounts not 2 necessary to pay in full the Capital Improvement Bonds and all obligations of the City with respect thereto may be used for any lawful municipal purpose." Section 5. Section 3 of Ordinance No. 2011-12-05 is hereby amended to read as follows: "Section 3. The Sales and Use Tax shall expire on the first date on which the Sales and Use Tax can be administratively removed when (a) there are sufficient funds to pay in full any outstanding Capital Improvement Bonds secured by a pledge of collections of the Sales and Use Tax and (b) the City Council determines that the purposes of the Sales and Use Tax cannot be or cannot continue to be fulfilled because no Capital Improvement Bonds secured by a pledge of collections of the Sales and Use Tax will be issued in the future." Section 6. Section 5 of Ordinance No. 2011-12-05 is hereby deleted. Section 7. The provisions of this Ordinance are hereby declared to be separable, and if any provision shall for any reason be held illegal or invalid, it shall not affect the validity of the remainder of this Ordinance. Section 8. Ordinance No. 201 1-12-05, as amended hereby, shall remain and be in full force and effect. PASSED: May___, 2023. ATTEST: City Clerk (SEAL) APPROVED: Mayor CERTIFICATE The undersigned, City Clerk of Batesville, Arkansas, hereby certifies that the foregoing pages are a true and perfect copy of Ordinance No. , passed at a regular session of the City Council of Batesville, Arkansas, held at the regular meeting place of the City Council at 5:30 o'clock p.m., on the day of May, 2023, and that the Ordinance is of record in Ordinance Record Book No. , Page , now in my possession. GIVEN under my hand and seal this day of May, 2023. (SEAL) City Clerk 4 ORDINANCE NO. AN ORDINANCE CALLING A SPECIAL ELECTION IN THE CITY OF BATESVILLE, ARKANSAS ON THE QUESTIONS OF ISSUING BONDS UNDER AMENDMENT NO. 62 TO THE CONSTITUTION OF THE STATE OF ARKANSAS FOR THE PURPOSE OF FINANCING AND REFINANCING ALL OR A PORTION OF THE COSTS OF CAPITAL IMPROVEMENTS; AND PRESCRIBING OTHER MATTERS PERTAINING THERETO. WHEREAS, the City Council of the City of Batesville, Arkansas (the "City") has determined that it would be in the best interest of the City to refund the City's outstanding Sales and Use Tax Bonds, Series 2012, which financed park and recreational improvements (the "Refunding"); and WHEREAS, the City Council has further determined that the City is in need of additional park and recreational facilities and improvements and any necessary land acquisition, demolition, furnishings, equipment and parking, lighting, landscaping, street, drainage and utility improvements related thereto (the "Park and Recreational Improvements"); and WHEREAS, the City Council proposes to finance all or a portion of the costs of the Refunding and the Park and Recreational Improvements by the issuance of capital improvement bonds (the "Bonds") under the authority of Amendment No. 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 "Authorizing Legislation") allocated as follows: (1) $12,820,000 in maximum aggregate principal amount for the Refunding; and (2) $25,985,000 in maximum aggregate principal amount for the Park and Recreational Improvements; and WHEREAS, the City Council proposes to retire the Bonds with the net collections of a 0.5% sales and use tax levied within the City by Ordinance No. 2011-12-05, adopted December 27, 2011, as it may be amended from time to time (the "Tax"); and WHEREAS, in order to provide additional funds to pay or to further secure repayment of the Bonds, the City may also pledge to the Bonds the net collections of the 0.5% sales and use tax levied within the City by Ordinance No. 2011-12-03, adopted December 27, 2011; and WHEREAS, the purpose of this Ordinance is to submit to the electors of the City the questions of issuing the Bonds for the Refunding and the Park and Recreational Improvements, at a special election to be called for that purpose; NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Batesville, Arkansas: Section 1. There is hereby called a special election to be held on August 8, 2023, at which election there shall be submitted to the electors of the City the questions of issuing the Bonds under Amendment 62 and the Authorizing Legislation to finance all or a portion of the costs of accomplishing the Refunding and the Park and Recreational Improvements, in the maximum aggregate principal amounts described above, to be secured as described above. Section 2. The questions of issuing the Bonds shall be placed on the ballot for the election in substantially the following form: REFUNDING BONDS Bonds of the City of Batesville in one or more series in the maximum aggregate principal amount of $12,820,000 for the purpose of refunding the City's Sales and Use Tax Bonds, Series 2012 and, in order to pay the bonds, the pledge of a 0.5% local sales and use tax levied within the City by Ordinance No. 2011-12-05, adopted December 27, 2011, as it may be amended from time to time. In order to provide additional funds to pay or to further secure repayment of the bonds, the City may also pledge to the bonds the net collections of a 0.5% sales and use tax levied within the City by Ordinance No. 2011-12-03, adopted December 27, 2011. FOR................................................................................................................................ ❑ AGAINST...................................................................................................................... ❑ PARK AND RECREATIONAL IMPROVEMENT BONDS Bonds of the City of Batesville in one or more series in the maximum aggregate principal amount of $25,985,000 for the purpose of financing all or a portion of the costs of park and recreational facilities and improvements and any necessary land acquisition, demolition, furnishings, equipment and parking, lighting, landscaping, street, drainage and utility improvements related thereto and, in order to pay the bonds, the pledge of a 0.5% local sales and use tax levied within the City by Ordinance No 2011-12-05, adopted December 27, 2011, as it may be amended from time to time. In order to provide additional funds to pay or to further secure repayment of the bonds, the City may also pledge to the bonds the net collections of a 0.5% sales and use tax levied within the City by Ordinance No. 2011-12-03, adopted December 27, 2011. FOR................................................................ AGAINST ........................................ ..................................................... ❑ ..................................................... ❑ Section 3. 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 municipal elections unless otherwise provided in the Authorizing Legislation and only qualified voters of the City shall have the right to vote at the election. 2 Section 4. The results of the election shall be proclaimed by the Mayor, and the Proclamation shall be published one time in a newspaper having a general circulation in the City, which Proclamation shall advise that the results as proclaimed shall be conclusive unless attacked in the courts within thirty days after the date of publication. Section 5. A copy of this Ordinance shall be (a) filed with the Independence County Clerk at least 70 days prior to the election date and (b) given to the Independence County Board of Election Commissioners so that the necessary election officials and supplies may be provided. Section 6. The Mayor and City Clerk, for and on behalf of the City, are hereby authorized and directed to do any and all things necessary to call and hold the special election as herein provided and to perform all acts of whatever nature necessary to carry out the authority conferred by this Ordinance. Section 7. If any Bonds are approved and issued, the City intends to negotiate with Crews & Associates, Inc., which has assisted the City in preparation of the Bond size and repayment structure, for the sale of the Bonds. Section 8. All ordinances and parts thereof in conflict herewith are hereby repealed to the extent of such conflict. PASSED: May _, 2023. ATTEST: City Clerk (SEAL) APPROVED: Mayor 3 CERTIFICATE The undersigned, City Clerk of Batesville, Arkansas, hereby certifies that the foregoing pages are a true and perfect copy of Ordinance No. , passed at a regular session of the City Council of Batesville, Arkansas, held at the regular meeting place of the City Council at 5:30 o'clock p.m., on the day of May, 2023, and that the Ordinance is of record in Ordinance Record Book No. , Page , now in my possession. GIVEN under my hand and seal this day of May, 2023. (SEAL) City Clerk 4 ORDINANCE NO. AN ORDINANCE CALLING A SPECIAL ELECTION IN THE CITY OF BATESVILLE, ARKANSAS ON THE QUESTION OF ISSUING BONDS UNDER AMENDMENT NO. 62 TO THE CONSTITUTION OF THE STATE OF ARKANSAS FOR THE PURPOSE OF FINANCING ALL OR A PORTION THE COSTS OF CAPITAL IMPROVEMENTS; LEVYING A ONE PERCENT (I %) SALES AND USE TAX TO COMMENCE ON APRIL 1, 2024 FOR THE PURPOSE OF RETIRING SUCH BONDS; AND PRESCRIBING OTHER MATTERS PERTAINING THERETO. WHEREAS, the City Council of the City of Batesville, Arkansas (the "City") has determined that the City is in need of extensions, betterments and improvements to the City's water system and any necessary demolition related thereto (the "Water Improvements"); and WHEREAS, the City Council proposes to finance all or a portion of the costs of the Water Improvements by the issuance of capital improvement bonds (the "Bonds") in one or more series in the maximum aggregate principal amount of $110,000,000 under the authority of Amendment No. 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 "Authorizing Legislation"); and WHEREAS, the Authorizing Legislation provides for the levy of one or more city-wide sales and use taxes at the rate of 0.125%, 0.25%, 0.5%, 0.75% or 1 % or any combination thereof, but not to exceed 1 % in the aggregate; and WHEREAS, the City can pay the principal of and interest on the Bonds from the proceeds of a City-wide 1 % sales and use tax to be levied under the authority of the Authorizing Legislation; and WHEREAS, pursuant to a special election held on March 10, 2009, the City has issued its Sales and Use Tax Bonds, Series 2010, Series 2011, Series 2013 and Series 2015; and WHEREAS, the City's Sales and Use Tax Bonds, Series 2010, Series 2011 and Series 2013 have been paid in full; and WHEREAS, the City's Sales and Use Tax Bonds, Series 2015 (the "Outstanding Bonds") are secured by and payable from collections of a 1 % City-wide sales and use tax levied under the authority of the Authorizing Legislation and pursuant to Ordinance No. 2009-1-1 of the City adopted on January 13, 2009 (the "Existing Tax"); and WHEREAS, the Existing Tax will expire after the Outstanding Bonds have been paid or provision has been made therefor; and WHEREAS, the Existing Tax is expected to be terminated no later than April 1, 2024; and WHEREAS, the City Council intends for the 1 % sales and use tax levied by this Ordinance to become effective on April 1, 2024; and WHEREAS, the purpose of this Ordinance is to submit to the electors of the City the question of issuing the Bonds under Amendment 62 and the Authorizing Legislation at a special election to be called for that purpose and to levy a sales and use tax at the rate of one percent (1 %) on the receipts from the sales at retail within the City of all items which are subject to taxation under the Arkansas Gross Receipts Act of 1941, as amended (A.C.A. §§26-52-101, et seq.), and the receipts from storing, using, distributing or consuming within the City tangible personal property under the Arkansas Compensating Tax Act of 1949, as amended (A.C.A. §§26-53-101, et seq.) (collectively, the "Sales and Use Tax"); NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Batesville, Arkansas: Section 1. There is hereby called a special election to be held on August 8, 2023, at which election there shall be submitted to the electors of the City the question of issuing the Bonds under Amendment 62 and the Authorizing Legislation to pay all or a portion of the costs of the Water Improvements in the maximum aggregate principal amount described above, to be payable from collections of the Sales and Use Tax remaining after deduction of the administrative charges of the State of Arkansas and required rebates. Section 2. In order to provide for the payment of the principal of and interest on the Bonds and all obligations of the City in connection therewith, there is hereby levied the Sales and Use Tax. The levy of the Sales and Use Tax shall not become effective until the special election called in Section 1 above has been held and the issuance of the Bonds is approved by the voters. The effective date of the Sales and Use Tax will be April 1, 2024. The 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 by Arkansas law, subject to rebates and limitations as from time to time required by Arkansas statutes for certain single transactions. Section 3. The question of issuing the Bonds shall be placed on the ballot for the election in substantially the following form: WATER IMPROVEMENT BONDS Bonds of the City of Batesville in one or more series in the maximum aggregate principal amount of $110,000,000 for the purpose of financing all or a portion of the costs of acquiring, constructing and equipping extensions, betterments and improvements to the City's water system and any necessary demolition related thereto and, in order to pay the bonds, the levy and pledge of a 1 % local sales and use tax within the City. If the bonds are approved, there will be levied within the City a 1 % sales and use tax, the net collections of which remaining after deduction of the administrative charges of the State of Arkansas and required rebates, will be used solely to retire the bonds and obligations of the City with respect thereto. The effective date of the 1% sales and use tax will be April 1, 2024. The 1% sales and use tax will expire after the bonds have been paid or provision is made therefor in accordance with Arkansas statutes. FOR..................................................................... AGAINST...................................................................................................................... ❑ Section 4. 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 municipal elections unless otherwise provided in the Authorizing Legislation and only qualified voters of the City shall have the right to vote at the election. Section 5. The results of the election shall be proclaimed by the Mayor, and the Proclamation shall be published one time in a newspaper having a general circulation in the City, which Proclamation shall advise that the results as proclaimed shall be conclusive unless attacked in the courts within thirty days after the date of publication. Section 6. A copy of this Ordinance shall (a) be filed with the Independence County Clerk at least 70 days prior to the date of the special election and (b) be given to 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 Commissioner of Revenues of the State of Arkansas as soon as practical. Section 7. The Mayor and City Clerk, for and on behalf of the City, are hereby 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 the Bonds is approved by the electors, to cause the Sales and Use Tax to be collected in accordance with the Authorizing Legislation, and to perform all acts of whatever nature necessary to carry out the authority conferred by this Ordinance. Section 8. All ordinances and parts thereof in conflict herewith are hereby repealed to the extent of such conflict. PASSED: May , 2023. ATTEST: City Clerk (SEAL) APPROVED: Mayor CERTIFICATE The undersigned, City Clerk of Batesville, Arkansas hereby certifies that the foregoing pages are a true and perfect copy of Ordinance No. , passed at a session of the City Council of Batesville, Arkansas, held at the regular meeting place of the City Council at 5:30 o'clock p.m., on the day of May, 2023, and that the Ordinance is of record in Ordinance Record Book No. , Page now in my possession. GIVEN under my hand and seal this day of May, 2023. City Clerk (SEAL)