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HomeMy WebLinkAboutOrdinance 2023-05-02FILED MAY 2 4 20A23 ORDINANCE NO. 2023-05-0201 TRACEY M HELL COUNTY & PROBATE CLERK AN ORDINANCE AMENDING ORDINANCE NO. 201 f D.C. ORDER TO AUTHORIZE THE NET COLLECTIONS OF THE 0.5% rfq 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. 2011-12-05 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. 2011-12-05, as amended hereby, shall remain and be in full force and effect. PASSED: May 23, 2023. FRIVIJIG!"Telom m ATTEST: S (SEAL) CERTIFICATE The undersigned, City Clerk of Batesville, Arkansas, hereby certifies that the foregoing pages are a true and perfect copy of Ordinance No. 2023-05-02, 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 23rd 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 23rd day of May, 2023. (SEAL) v%- )Zi City Clerk 0