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HomeMy WebLinkAboutOrdinance 6920' N c+i _ C. ri •� J 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Z7 Ordinance: 6920 File Number: 2025-2030 AN ORDINANCE CALLING AND SETTING A DATE FOR A SPECIAL ELECTION ON THE QUESTIONS OF THE ISSUANCE BY THE CITY OF SALES AND USE TAX CAPITAL IMPROVEMENT BONDS FOR VARIOUS SPECIFIED PURPOSES; LEVYING A LOCAL SALES AND USE TAX AT THE RATE OF ONE PERCENT (1.00%) FOR THE PURPOSE OF RETIRING SUCH BONDS; AND PRESCRIBING OTHER MATTERS PERTAINING THERETO 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 capital improvement bonds by municipalities, which bonds may be secured by the pledge of all of the receipts of the special citywide sales and use tax described in the Local Government Bond Act; and WHEREAS, pursuant to Amendment 62 and the Local Government Bond Act, the City of Fayetteville, Arkansas (the "City") has previously issued and there will be outstanding, as of November 1, 2025, (i) its Sales and Use Tax Capital Improvement Bonds, Series 2022, in the aggregate principal amount of $42,660,000 (the "Series 2022 Bonds"), and (ii) its Sales and Use Tax Capital Improvement Bonds, Series 2024, in the aggregate principal amount of $15,000,000 (the "Series 2024 Bonds") (collectively, the "Prior Bonds"); and WHEREAS, the Prior Bonds are secured by and payable from the receipts of a one percent (1.00%) special citywide sale and use tax previously levied under the authority of the Local Government Bond Act (the "Prior Tax"); and WHEREAS, the City Council has determined that additional revenues can be obtained to finance critical capital improvement needs by restructuring the City's existing indebtedness secured by sales and use tax receipts through the refunding of the Prior Bonds; and WHEREAS, if approved by the electors of the City, the City has determined to issue (i) its refunding bonds in principal amount not to exceed $40,000,000 for the purpose of refunding the Prior Bonds, (ii) its capital improvement bonds in principal amount not to exceed $150,500,000 for the purpose of financing all or a portion of the costs of certain water system repairs and rehabilitation and certain wastewater treatment plant rehabilitation and upgrades, (iii) its capital improvement bonds in principal amount not to exceed $25,500,000 for the purpose of financing all or a portion of the costs of certain regional park and other parks system improvements, (iv) its capital improvement bonds in principal amount not to exceed $18,100,000 for the purpose of financing all or a portion of the costs of an animal services facility, (v) its capital improvement bonds in principal amount not to exceed $3,800,000 for the purpose of financing all or a portion of the costs of certain trail system improvements, (vi) its capital improvement bonds in principal amount not to exceed $56,000,000 for the purpose of financing all or a portion of the costs of certain street and other transportation -related improvements, (vii) its capital improvement bonds in principal amount not to exceed $1,050,000 for the purpose of financing all or a portion of the costs of a recycling drop-off facility and a household hazardous waste facility, (viii) its capital improvement bonds in principal amount not to exceed $61,900,000 for the purpose of financing all or a portion of the costs of a community aquatics/recreation center, and (ix) its capital improvement bonds in principal amount not to exceed $18,650,000 for the purpose of financing all or a portion of the Page 1 Ordinance: 6920 File Number: 2025-2030 costs of certain fire station and fire training facility construction and the acquisition of firefighting vehicles, equipment and apparatus (collectively, the "Bonds"), which Bonds are to be secured by a pledge of and lien upon all of the receipts of a one percent (1.00%) special citywide sales and use tax (the "Bond Tax"), which Bond Tax shall replace the existing one percent (1.00%) special citywide sales and use tax (the "Prior Tax") securing the Prior Bonds, all as authorized by Amendment 62 and the Local Government Bond Act; and WHEREAS, the purpose of this Ordinance is to call a special election on the issuance of the Bonds by the City and for related purposes. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That under the authority of Amendment 62 and the Local Government Bond Act and subject to approval by the electors of Question One and at least one of the other questions set forth in Section 4 below, there are hereby levied (i) a sales tax at the rate of one percent (1.00%) 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 (1.00%) 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 "Bond Tax"). The Bond 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 those Bonds approved by the voters. The Bond Tax shall be levied and collected only 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 limitation as required for certain "single transactions" as from time to time required under Arkansas law. The levy and collection of the Bond Tax shall commence on and as of such date as provided by Arkansas law, and shall cease upon retirement in full of those Bonds approved by the voters. Any collections of the Prior Tax received after the issuance of the refunding bonds described in Question One (or any other excess collections of the Prior Tax) shall be used to provide for the payment of debt service on those Bonds approved by the voters. Section 2. That under the authority of Amendment 62 and the Local Government Bond Act and subject to approval by the electors of the City of Question One and at least one of the other questions set forth in Section 4 below, there are hereby authorized (1) the issuance of the City's refunding bonds in aggregate principal amount not to exceed $40,000,000 for the purpose of redeeming the outstanding Prior Bonds, as described in Question One under Section 4 below, (2) the issuance of the City's capital improvement bonds in aggregate principal amount not to exceed $150,500,000 for the purpose of financing all or a portion of the costs of certain water system repairs and rehabilitation and certain wastewater treatment plant rehabilitation and upgrades, as described in Question Two under Section 4 below, (iii) the issuance of the City's capital improvement bonds in principal amount not to exceed $25,500,000 for the purpose of financing all or a portion of the costs of certain regional park and other parks system improvements, as described in Question Three under Section 4 below, (iv) the issuance of the City's capital improvement bonds in principal amount not to exceed $18,100,000 for the purpose of financing all or a portion of the costs of an animal services facility, as described in Question Four under Section 4 below, (v) the issuance of the City's capital improvement bonds in principal amount not to exceed $3,800,000 for the purpose of financing all or a portion of the costs of certain trail system improvements, as described in Question Five under Section 4 below, (vi) the issuance of the City's capital improvement bonds in principal amount not to exceed $56,000,000 for the purpose of financing all or a portion of the costs of certain street and other transportation -related improvements, as described in Question Six under Section 4 below, (vii) the issuance of the City's capital improvement bonds in principal amount not to exceed $1,050,000 for the purpose of financing all or a portion of the costs of a recycling drop-off facility and a household hazardous waste facility, as described in Question Seven under Section 4 below, (viii) the issuance of the City's capital improvement bonds in principal amount not to exceed $61,900,000 for the purpose of financing all or a portion of the costs of a community aquatics/recreation center, as described in Question Eight under Section 4 below, and (ix) the issuance of the City's capital improvement bonds in principal amount not to exceed $18,650,000 for the purpose of financing all or a portion of the costs of certain fire station and fire training facility construction and the acquisition of Page 2 Ordinance: 6920 File Number: 2025-2030 firefighting vehicles, equipment and apparatus, as described in Question Nine under Section 4 below. If approved by the electors of the City, the aforementioned refunding bonds and capital improvement bonds (collectively, the "Bonds") may 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. Any Bonds so issued shall be secured by a pledge of and a lien upon all of the receipts of the Bond Tax, as authorized by the Local Government Bond Act. Section 3. That there be, and there is hereby called, a special election to be held on Tuesday, March 3, 2026, at which election there shall be submitted to the electors of the City the questions of the issuance of the Bonds. Section 4. That the questions shall be placed on the ballot for the special election in substantially the following forms: SPECIAL ELECTION ON BOND ISSUANCE AND CITY SALES AND USE TAX LEVY There is submitted to the qualified electors of the City of Fayetteville, Arkansas the questions of the issuance of the bonds described in Questions 1-9 set forth below. Upon approval of Question One and at least one of the other Questions set forth below, and upon the issuance of the Refunding Bonds (defined in Question One), the City's existing levy of a one percent (1.00%) special sales and use tax (the "Prior Tax") securing the Prior Bonds (defined in Question One) shall cease and such Prior Tax will be replaced by the levy of the one percent (1.00%) Bond Tax (defined in Questions One) under the authority of Title 14, Chapter 164, Subchapter 3 of the Arkansas Code of 1987 Annotated. Such Bond Tax shall commence on and as of such date as provided by Arkansas law and shall cease upon retirement of all of the approved bonds. The bonds described below that are approved may be combined into a single issue or may be issued in series from time to time and may be issued on a tax-exempt or taxable basis. The net collections of the Bond Tax remaining after the State of Arkansas deducts its administrative charges will be used solely to retire those bonds described below which are approved by the voters and obligations of the City with respect thereto. Unless Question One and at least one of the other Questions set forth below are approved, none of the bonds described below will be issued, the Bond Tax will not be levied, and the Prior Tax will remain in place until payment in full of the Prior Bonds. Question One (1) — Refunding Bonds: There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of refunding bonds in principal amount not to exceed $40,000,000 (the "Refunding 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 refunding the City's outstanding (i) Sales and Use Tax Capital Improvement and Refunding Bonds, Series 2019A, (ii) Sales and Use Tax Capital Improvement Bonds, Series 2022, and (iii) Sales and Use Tax Capital Improvement Bonds, Series 2024 (collectively, the "Prior Bonds"). If the issuance of the Refunding Bonds is approved, the Refunding Bonds shall be secured by a pledge of and lien upon all of the receipts of a special citywide sales and use tax at the rate of one percent (1.00%) levied pursuant to the Local Government Bond Act (the "Bond Tax"). Vote on the question by placing an "X" in one of the squares following the question, either for or against: FOR the issuance of Refunding Bonds in principal amount not to exceed $40,000,000................................................................................. ❑ AGAINST the issuance of Refunding Bonds in principal amount not to exceed $40,000,000................................................................................. ❑ Question Two (2) — Water/Wastewater System Bonds: There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of Page 3 Ordinance: 6920 File Number: 2025-2030 capital improvement bonds in principal amount not to exceed $150,500,000 (the "Water/Wastewater System Bonds") pursuant to the Local Government Bond Act (as defined in Question One) for the purpose of financing all or a portion of the costs of various repairs to and rehabilitation of the City's water system and all or a portion of the costs of upgrades to and the rehabilitation of the Noland Wastewater Treatment Plant. If the issuance of the Water System Bonds is approved, the Water System Bonds shall be secured by a pledge of and lien upon all of the receipts of a special citywide sales and use tax at the rate of one percent (1.00%) levied pursuant to the Local Government Bond Act (the "Bond Tax"). Vote on the question by placing an "X" in one of the squares following the question, either for or against: FOR the issuance of Water/Wastewater System Bonds in principal amount not to exceed $150,500,000....................................................................... ❑ AGAINST the issuance of Water/Wastewater System Bonds in principal amount not to exceed $150,500,000............................................................. ❑ Question Three (3) — Parks System Bonds: There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of capital improvement bonds in principal amount not to exceed $25,500,000 (the "Parks System Bonds") pursuant to the Local Government Bond Act (as defined in Question One) for the purpose of financing all or a portion of the costs of the design, construction and equipping of various park system improvements, including land acquisition, the addition and/or renovation of athletic fields, concession facilities, restrooms and playgrounds, and which may include other ancillary improvements such as street and utility extensions and improvements, fencing, lighting, shade structures, landscaping and parking. If the issuance of the Parks System Bonds is approved, the Parks System Bonds shall be secured by a pledge of and lien upon all of the receipts of a special citywide sales and use tax at the rate of one percent (1.00%) levied pursuant to the Local Government Bond Act (the "Bond Tax"). Vote on the question by placing an "X" in one of the squares following the question, either for or against: FOR the issuance of Parks System Bonds in principal $25,500,000.................................................................................. ❑ AGAINST the issuance of Parks System Bonds in principal $25,500,000.................................................................................. ❑ Question Four (4) — Animal Services Facility Bonds: amount not to exceed amount not to exceed There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of capital improvement bonds in principal amount not to exceed $18,100,000 (the "Animal Service Facility Bonds") pursuant to the Local Government Bond Act (as defined in Question One) for the purpose of financing all or a portion of the costs of the design, construction and equipping of an animal services facility, and which may include land acquisition and other ancillary improvements such as community meeting rooms, recycling facilities, street and utility extensions and improvements, landscaping and parking. If the issuance of the Animal Services Facility Bonds is approved, the Animal Services Facility Bonds shall be secured by a pledge of and lien upon all of the receipts of a special citywide sales and use tax at the rate of one percent (1.00%) levied pursuant to the Local Government Bond Act (the "Bond Tax"). Vote on the question by placing an "X" in one of the squares following the question, either for or against: FOR the issuance of Animal Services Facility Bonds in principal amount not to exceed Page 4 Ordinance: 6920 File Number: 2025-2030 $18,100,000......................................................................... ❑ AGAINST the issuance of Animal Services Facility Bonds in principal amount not to exceed $18,100,000...................................................................... ❑ Question Five (5) — Trail System Bonds: There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of capital improvement bonds in principal amount not to exceed $3,800,000 (the "Trail System Bonds") pursuant to the Local Government Bond Act (as defined in Question One) for the purpose of financing all or a portion of the costs of design, construction, reconstruction, extension, resurfacing and equipping of certain City trail system improvements, and which may include related pedestrian signal, lighting, landscaping, drainage and safety improvements, right-of-way acquisition and utility extension and relocation. If the issuance of the Trail System Bonds is approved, the Trail System Bonds shall be secured by a pledge of and lien upon all of the receipts of a special citywide sales and use tax at the rate of one percent (1.00%) levied pursuant to the Local Government Bond Act (the "Bond Tax"). Vote on the question by placing an "X" in one of the squares following the question, either for or against: FOR the issuance of Trail System Bonds in principal amount not to exceed $3,800,000.................................................................................. ❑ AGAINST the issuance of Trail System Bonds in principal amount not to exceed $3,800,000.................................................................................. ❑ Question Six (6) — Transportation System Bonds: There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of capital improvement bonds in principal amount not to exceed $56,000,000 (the "Transportation System Bonds") pursuant to the Local Government Bond Act (as defined in Question One) for the purpose of financing all or a portion of the costs of right-of-way acquisition, planning, design, construction, reconstruction, repair, resurfacing, straightening and width modification of certain City streets, and which may include related program management services, utility extension and relocation, bridges, bicycle lanes, traffic signal and control, lighting, curbing, guttering, landscaping, drainage and safety improvements and curbside pedestrian infrastructure such as sidewalks, bus pickup structures and concrete waiting pads. If the issuance of the Transportation System Bonds is approved, the Transportation System Bonds shall be secured by a pledge of and lien upon all of the receipts of a special citywide sales and use tax at the rate of one percent (1.00%) levied pursuant to the Local Government Bond Act (the "Bond Tax"). Vote on the question by placing an "X" in one of the squares following the question, either for or against: FOR the issuance of Transportation System Bonds in principal amount not to exceed $56,000,000......................................................................... ❑ AGAINST the issuance of Transportation System Bonds in principal amount not to exceed $56,000,000......................................................................... ❑ Question Seven (7) — Sustainability Bonds: There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of capital improvement bonds in principal amount not to exceed $1,050,000 (the "Sustainability Bonds") pursuant to the Local Government Bond Act (as defined in Question One) for the purpose of financing all or a portion of Page 5 Ordinance: 6920 File Number: 2025-2030 the costs of land acquisition, design, construction and equipping of a Recycling Drop -Off Facility and a Household Hazardous Waste Facility, and which may include other ancillary improvements such as street and utility extensions and improvements, landscaping and parking. If the issuance of the Sustainability Bonds is approved, the Sustainability Bonds shall be secured by a pledge of and lien upon all of the receipts of a special citywide sales and use tax at the rate of one percent (1.00%) levied pursuant to the Local Government Bond Act (the "Bond Tax"). Vote on the question by placing an "X" in one of the squares following the question, either for or against: FOR the issuance of Sustainability Bonds in principal amount not to exceed $1,050,000................................................................................... ❑ AGAINST the issuance of Sustainability Bonds in principal amount not to exceed $1,050,000.................................................................................... ❑ Question Eight (8) — Aquatics/Recreation Center Bonds: There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of capital improvement bonds in principal amount not to exceed $61,900,000 (the "Aquatics/Recreation Center Bonds") pursuant to the Local Government Bond Act (as defined in Question One) for the purpose of financing all or a portion of the costs of land acquisition, design, construction and equipping of an Aquatics/Recreation Center, which may include aquatic features such as indoor and/or outdoor pools and other auxiliary water features, recreational and sports facilities, multi -purpose rooms and offices, and which may also include other ancillary improvements such as street and utility extensions and improvements, landscaping and parking. If the issuance of the Aquatics/Recreation Center Bonds is approved, the Aquatics/Recreation Center Bonds shall be secured by a pledge of and lien upon all of the receipts of a special citywide sales and use tax at the rate of one percent (1.00%) levied pursuant to the Local Government Bond Act (the "Bond Tax"). Vote on the question by placing an "X" in one of the squares following the question, either for or against: FOR the issuance of Aquatics/Recreation Center Bonds in principal amount not to exceed $61,900,000......................................................................... ❑ AGAINST the issuance of Aquatics/Recreation Center Bonds in principal amount not to exceed $61,900,000.................................................................. ❑ Question Nine (9) — Fire Department Bonds: There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of capital improvement bonds in principal amount not to exceed $18,650,000 (the "Fire Department Bonds") pursuant to the Local Government Bond Act (as defined in Question One) for the purpose of financing all or a portion of the costs of the design, construction and equipping of a Fire Training Facility to be located on City - owned land at 2515 E. Borick Drive, land acquisition, design, construction and equipping of a Fire Station, and acquisition of firefighting vehicles, equipment and apparatus, and which may include other ancillary improvements such as street and utility extensions and improvements, landscaping and parking. If the issuance of the Fire Department Bonds is approved, the Fire Department Bonds shall be secured by a pledge of and lien upon all of the receipts of a special citywide sales and use tax at the rate of one percent (1.00%) levied pursuant to the Local Government Bond Act (the "Bond Tax"). Vote on the question by placing an "X" in one of the squares following the question, either for or against: FOR the issuance of Fire Department Bonds in principal amount not to exceed Page 6 Ordinance: 6920 File Number: 2025-2030 $18,650,000.................................................................................. ❑ AGAINST the issuance of Fire Department Bonds in principal amount not to exceed $18,650,000......................................................................... ❑ Section 5. 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, 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 6. That a copy of this Ordinance shall be given to the Washington County Clerk and to the Washington County Board of Election Commissioners at least seventy (70) days prior to the date of the special election 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 and to the Treasurer of the State of Arkansas as soon as practical. Section 7. That the results of the special election shall be proclaimed by the Mayor, and her 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 Washington County within thirty (30) days after the date of publication of the proclamation. Section 8. 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 the Refunding Bonds and any of the capital improvement bonds described herein are approved by the electors, to cause the Bond Tax to be collected in accordance with the Local Government Bond Act, and to perform all acts of whatever nature necessary to carry out the authority conferred by this Ordinance. Section 9. That the City considers this Ordinance to be its declaration of official intent to issue the Bonds and to make reimbursement to the City with a portion of the proceeds thereof for all original expenditures incurred by the City in acquiring, constructing or equipping any of the projects described herein between the date that is sixty (60) days prior to the date of this Ordinance and the date a series of Bonds is issued, 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 10. That Kutak Rock LLP is hereby engaged as Bond Counsel and Stephens Inc. is hereby engaged as Underwriter with respect to the issuance of the 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 11. 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 12. That all ordinances and parts thereof in conflict herewith are hereby repealed to the extent of such conflict. PASSED and APPROVED on October 21, 2025 Approved: . Molly Rawn, Mayor 111///AI, Attest: YrRF�s��ii FAYETTEVILLE',m70= Kara Paxton, City Clerk Treasurer P NSGO N 11IO /1����` This publication was paid for by the City Clerk -Treasurer of the City of Fayetteville, Arkansas. Amount Paid: $3,154.13 Page 7 CITY OF mi'.P FAYETTEVILLE ARKANSAS MEETING OF OCTOBER 21, 2025 CITY COUNCIL MEMO 2025-2030 TO: Mayor Rawn and City Council THRU: Molly Rawn, Mayor FROM: Steven Dotson, Chief Financial Officer SUBJECT: Special Election for the City to issue Sales and Use Tax Capital Improvement Bonds RECOMMENDATION: Recommend City Council pass an ordinance calling and setting a date for a special election on the questions of the issuance by the City of Sales and Use Tax Capital Improvement Bonds for various specified purposes; levying a local sales and use tax at the rate of one percent (1.00%) for the purpose of retiring such bonds and prescribing other matters pertaining thereto. BACKGROUND: 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 capital improvement bonds by municipalities, which bonds may be secured by the pledge of all of the receipts of the special citywide sales and use tax described in the Local Government Bond Act. DISCUSSION: The City has prior bonds that are secured by and payable from the receipts of a 1 % special citywide sales and use tax that was previously levied under the authority of the Local Government Bond Act. The City has identified new critical capital improvement needs at this time. Additional revenues to finance these capital improvement needs can be obtained by restructuring the City's existing indebtedness secured by sales and use tax receipts through the refunding of the prior bonds, and through the issuance of new sales and use tax bonds. BUDGET/STAFF IMPACT: The City will use receipts from the continuation of a combined 1 % citywide sales and use tax. This tax will be rededicated to refunding and payment of bond indebtedness. ATTACHMENTS: 3. Staff Review Form, 4. Additional Information - Special Election for the City to Issue Sales and Use Tax Capital Improvement Bonds - Final Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 Steve Dotson Submitted By City of Fayetteville Staff Review Form 2025-2030 Item ID 10/21/2025 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 10/6/2025 CHIEF FINANCIAL OFFICER (110) Submitted Date Division / Department Action Recommendation: Recommend City Council pass an ordinance calling and setting a date for a special election on the questions of the issuance by the City of Sales and Use Tax Capital Improvement Bonds for various specified purposes; levying a local sales and use tax at the rate of one percent (1.00%) for the purpose of retiring such bonds and prescribing other matters pertaining thereto. Account Number Project Number Budgeted Item? No Does item have a direct cost? No Is a Budget Adjustment attached? No Budget Impact: Total Amended Budget Expenses (Actual+Encum) Available Budget Item Cost Budget Adjustment Remaining Budget Fund Project Title V20221130 Purchase Order Number: Previous Ordinance or Resolution # Change Order Number: Approval Date: Original Contract Number: Comments: -- City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 Legislation Text (479) 575-8323 File #: 2025-2030 AN ORDINANCE CALLING AND SETTING A DATE FOR A SPECIAL ELECTION ON THE QUESTIONS OF THE ISSUANCE BY THE CITY OF SALES AND USE TAX CAPITAL IMPROVEMENT BONDS FOR VARIOUS SPECIFIED PURPOSES; LEVYING A LOCAL SALES AND USE TAX AT THE RATE OF ONE PERCENT (1.00%) FOR THE PURPOSE OF RETIRING SUCH BONDS; AND PRESCRIBING OTHER MATTERS PERTAINING THERETO 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 capital improvement bonds by municipalities, which bonds may be secured by the pledge of all of the receipts of the special citywide sales and use tax described in the Local Government Bond Act; and WHEREAS, pursuant to Amendment 62 and the Local Government Bond Act, the City of Fayetteville, Arkansas (the "City") has previously issued and there will be outstanding, as of November 1, 2025, (i) its Sales and Use Tax Capital Improvement Bonds, Series 2022, in the aggregate principal amount of $42,660,000 (the "Series 2022 Bonds"), and (ii) its Sales and Use Tax Capital Improvement Bonds, Series 2024, in the aggregate principal amount of $15,000,000 (the "Series 2024 Bonds") (collectively, the "Prior Bonds"); and WHEREAS, the Prior Bonds are secured by and payable from the receipts of a one percent (1.00%) special citywide sale and use tax previously levied under the authority of the Local Government Bond Act (the "Prior Tax"); and WHEREAS, the City Council has determined that additional revenues can be obtained to finance critical capital improvement needs by restructuring the City's existing indebtedness secured by sales and use tax receipts through the refunding of the Prior Bonds; and WHEREAS, if approved by the electors of the City, the City has determined to issue (i) its refunding bonds in principal amount not to exceed $40,000,000 for the purpose of refunding the Prior Bonds, (ii) its capital improvement bonds in principal amount not to exceed $150,500,000 for the purpose of financing all or a portion of the costs of certain water system repairs and rehabilitation and certain wastewater treatment plant rehabilitation and upgrades, (iii) its capital improvement bonds in principal amount not to exceed $25,500,000 for the purpose of financing all or a portion of the costs of certain regional park and other parks system improvements, (iv) its capital improvement bonds in principal amount not to exceed $18,100,000 for the purpose of financing all or a portion of the costs of an animal services facility, (v) its capital improvement bonds in principal amount not to exceed $3,800,000 for the purpose of financing all or a portion of the costs of certain trail system improvements, (vi) its capital Page 1 Ordinance: 6920 File Number: 2025-2030 improvement bonds in principal amount not to exceed $56,000,000 for the purpose of financing all or a portion of the costs of certain street and other transportation -related improvements, (vii) its capital improvement bonds in principal amount not to exceed $1,050,000 for the purpose of financing all or a portion of the costs of a recycling drop-off facility and a household hazardous waste facility, (viii) its capital improvement bonds in principal amount not to exceed $61,900,000 for the purpose of financing all or a portion of the costs of a community aquatics/recreation center, and (ix) its capital improvement bonds in principal amount not to exceed $18,650,000 for the purpose of financing all or a portion of the costs of certain fire station and fire training facility construction and the acquisition of firefighting vehicles, equipment and apparatus (collectively, the "Bonds"), which Bonds are to be secured by a pledge of and lien upon all of the receipts of a one percent (1.00%) special citywide sales and use tax (the "Bond Tax"), which Bond Tax shall replace the existing one percent (1.00%) special citywide sales and use tax (the "Prior Tax") securing the Prior Bonds, all as authorized by Amendment 62 and the Local Government Bond Act; and WHEREAS, the purpose of this Ordinance is to call a special election on the issuance of the Bonds by the City and for related purposes. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That under the authority of Amendment 62 and the Local Government Bond Act and subject to approval by the electors of Question One and at least one of the other questions set forth in Section 4 below, there are hereby levied (i) a sales tax at the rate of one percent (1.00%) 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 (1.00%) 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 "Bond Tax"). The Bond 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 those Bonds approved by the voters. The Bond Tax shall be levied and collected only 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 limitation as required for certain "single transactions" as from time to time required under Arkansas law. The levy and collection of the Bond Tax shall commence on and as of such date as provided by Arkansas law, and shall cease upon retirement in full of those Bonds approved by the voters. Any collections of the Prior Tax received after the issuance of the refunding bonds described in Question One (or any other excess collections of the Prior Tax) shall be used to provide for the payment of debt service on those Bonds approved by the voters. Section 2. That under the authority of Amendment 62 and the Local Government Bond Act and subject to approval by the electors of the City of Question One and at least one of the other questions set forth in Section 4 below, there are hereby authorized (1) the issuance of the City's refunding bonds in aggregate principal amount not to exceed $40,000,000 for the purpose of redeeming the outstanding Prior Bonds, as described in Question One under Section 4 below, (2) the issuance of the City's capital improvement Page 2 Ordinance: 6920 File Number: 2025-2030 bonds in aggregate principal amount not to exceed $150,500,000 for the purpose of financing all or a portion of the costs of certain water system repairs and rehabilitation and certain wastewater treatment plant rehabilitation and upgrades, as described in Question Two under Section 4 below, (iii) the issuance of the City's capital improvement bonds in principal amount not to exceed $25,500,000 for the purpose of financing all or a portion of the costs of certain regional park and other parks system improvements, as described in Question Three under Section 4 below, (iv) the issuance of the City's capital improvement bonds in principal amount not to exceed $18,100,000 for the purpose of financing all or a portion of the costs of an animal services facility, as described in Question Four under Section 4 below, (v) the issuance of the City's capital improvement bonds in principal amount not to exceed $3,800,000 for the purpose of financing all or a portion of the costs of certain trail system improvements, as described in Question Five under Section 4 below, (vi) the issuance of the City's capital improvement bonds in principal amount not to exceed $56,000,000 for the purpose of financing all or a portion of the costs of certain street and other transportation -related improvements, as described in Question Six under Section 4 below, (vii) the issuance of the City's capital improvement bonds in principal amount not to exceed $1,050,000 for the purpose of financing all or a portion of the costs of a recycling drop-off facility and a household hazardous waste facility, as described in Question Seven under Section 4 below, (viii) the issuance of the City's capital improvement bonds in principal amount not to exceed $61,900,000 for the purpose of financing all or a portion of the costs of a community aquatics/recreation center, as described in Question Eight under Section 4 below, and (ix) the issuance of the City's capital improvement bonds in principal amount not to exceed $18,650,000 for the purpose of financing all or a portion of the costs of certain fire station and fire training facility construction and the acquisition of firefighting vehicles, equipment and apparatus, as described in Question Nine under Section 4 below. If approved by the electors of the City, the aforementioned refunding bonds and capital improvement bonds (collectively, the "Bonds") may 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. Any Bonds so issued shall be secured by a pledge of and a lien upon all of the receipts of the Bond Tax, as authorized by the Local Government Bond Act. Section 3. That there be, and there is hereby called, a special election to be held on Tuesday, March 3, 2026, at which election there shall be submitted to the electors of the City the questions of the issuance of the Bonds. Section 4. That the questions shall be placed on the ballot for the special election in substantially the following forms: SPECIAL ELECTION ON BOND ISSUANCE AND CITY SALES AND USE TAX LEVY There is submitted to the qualified electors of the City of Fayetteville, Arkansas the questions of the issuance of the bonds described in Questions 1-9 set forth below. Upon approval of Question One and at least one of the other Questions set forth below, and upon the issuance of the Refunding Bonds (defined in Question One), the City's existing levy of a one percent (1.00%) special sales and use tax (the "Prior Tax") securing the Prior Bonds (defined in Question One) shall cease and such Prior Tax will be replaced by the levy of the one percent (1.00%) Bond Tax (defined in Questions One) under the authority of Title 14, Chapter 164, Subchapter 3 of the Arkansas Code of 1987 Annotated. Such Bond Tax shall commence on and as of such date as provided by Arkansas law and shall cease upon retirement of all of the approved bonds. The bonds described below that are approved may be combined Page 3 Ordinance: 6920 File Number: 2025-2030 into a single issue or may be issued in series from time to time and may be issued on a tax-exempt or taxable basis. The net collections of the Bond Tax remaining after the State of Arkansas deducts its administrative charges will be used solely to retire those bonds described below which are approved by the voters and obligations of the City with respect thereto. Unless Question One and at least one of the other Questions set forth below are approved, none of the bonds described below will be issued, the Bond Tax will not be levied, and the Prior Tax will remain in place until payment in full of the Prior Bonds. Question One (1) — Refunding Bonds: There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of refunding bonds in principal amount not to exceed $40,000,000 (the "Refunding 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 refunding the City's outstanding (i) Sales and Use Tax Capital Improvement and Refunding Bonds, Series 2019A, (ii) Sales and Use Tax Capital Improvement Bonds, Series 2022, and (iii) Sales and Use Tax Capital Improvement Bonds, Series 2024 (collectively, the "Prior Bonds"). If the issuance of the Refunding Bonds is approved, the Refunding Bonds shall be secured by a pledge of and lien upon all of the receipts of a special citywide sales and use tax at the rate of one percent (1.00%) levied pursuant to the Local Government Bond Act (the "Bond Tax"). Vote on the question by placing an "X" in one of the squares following the question, either for or against: FOR the issuance of Refunding Bonds in principal amount not to exceed $40,000,000................................................................................. ❑ AGAINST the issuance of Refunding Bonds in principal amount not to exceed $40,000,000................................................................................. ❑ Question Two (2) — Water/Wastewater System Bonds: There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of capital improvement bonds in principal amount not to exceed $150,500,000 (the "Water/Wastewater System Bonds") pursuant to the Local Government Bond Act (as defined in Question One) for the purpose of financing all or a portion of the costs of various repairs to and rehabilitation of the City's water system and all or a portion of the costs of upgrades to and the rehabilitation of the Noland Wastewater Treatment Plant. If the issuance of the Water System Bonds is approved, the Water System Bonds shall be secured by a pledge of and lien upon all of the receipts of a special citywide sales and use tax at the rate of one percent (1.00%) levied pursuant to the Local Government Bond Act (the "Bond Tax"). Vote on the question by placing an "X" in one of the squares following the question, either for or against: Page 4 Ordinance: 6920 File Number: 2025-2030 FOR the issuance of Water/Wastewater System Bonds in principal amount not to exceed $150,500,000....................................................................... ❑ AGAINST the issuance of Water/Wastewater System Bonds in principal amount not to exceed $150,500,000............................................................. ❑ Question Three (3) — Parks System Bonds: There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of capital improvement bonds in principal amount not to exceed $25,500,000 (the "Parks System Bonds") pursuant to the Local Government Bond Act (as defined in Question One) for the purpose of financing all or a portion of the costs of the design, construction and equipping of various park system improvements, including land acquisition, the addition and/or renovation of athletic fields, concession facilities, restrooms and playgrounds, and which may include other ancillary improvements such as street and utility extensions and improvements, fencing, lighting, shade structures, landscaping and parking. If the issuance of the Parks System Bonds is approved, the Parks System Bonds shall be secured by a pledge of and lien upon all of the receipts of a special citywide sales and use tax at the rate of one percent (1.00%) levied pursuant to the Local Government Bond Act (the "Bond Tax"). Vote on the question by placing an "X" in one of the squares following the question, either for or against: FOR the issuance of Parks System Bonds in principal amount not to exceed $25,500,000.................................................................................. ❑ AGAINST the issuance of Parks System Bonds in principal amount not to exceed $25,500,000.................................................................................. ❑ stion Four (4) — Animal Services Facilitv Bonds: There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of capital improvement bonds in principal amount not to exceed $18,100,000 (the "Animal Service Facility Bonds") pursuant to the Local Government Bond Act (as defined in Question One) for the purpose of financing all or a portion of the costs of the design, construction and equipping of an animal services facility, and which may include land acquisition and other ancillary improvements such as community meeting rooms, recycling facilities, street and utility extensions and improvements, landscaping and parking. If the issuance of the Animal Services Facility Bonds is approved, the Animal Services Facility Bonds shall be secured by a pledge of and lien upon all of the receipts of a special citywide sales and use tax at the rate of one percent (1.00%) levied pursuant to the Local Government Bond Act (the "Bond Tax"). Vote on the question by placing an "X" in one of the squares following the question, either for or against: FOR the issuance of Animal Services Facility Bonds in principal amount not to exceed Page 5 Ordinance: 6920 File Number: 2025-2030 $18,100,000......................................................................... ❑ AGAINST the issuance of Animal Services Facility Bonds in principal amount not to exceed $18,100,000...................................................................... ❑ Question Five (5) — Trail System Bonds: There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of capital improvement bonds in principal amount not to exceed $3,800,000 (the "Trail System Bonds") pursuant to the Local Government Bond Act (as defined in Question One) for the purpose of financing all or a portion of the costs of design, construction, reconstruction, extension, resurfacing and equipping of certain City trail system improvements, and which may include related pedestrian signal, lighting, landscaping, drainage and safety improvements, right- of-way acquisition and utility extension and relocation. If the issuance of the Trail System Bonds is approved, the Trail System Bonds shall be secured by a pledge of and lien upon all of the receipts of a special citywide sales and use tax at the rate of one percent (1.00%) levied pursuant to the Local Government Bond Act (the "Bond Tax"). Vote on the question by placing an "X" in one of the squares following the question, either for or against: FOR the issuance of Trail System Bonds in principal amount not to exceed $3,800,000.................................................................................. ❑ AGAINST the issuance of Trail System Bonds in principal amount not to exceed $3,800,000.................................................................................. ❑ Question Six (6) — Transportation System Bonds: There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of capital improvement bonds in principal amount not to exceed $56,000,000 (the "Transportation System Bonds") pursuant to the Local Government Bond Act (as defined in Question One) for the purpose of financing all or a portion of the costs of right-of-way acquisition, planning, design, construction, reconstruction, repair, resurfacing, straightening and width modification of certain City streets, and which may include related program management services, utility extension and relocation, bridges, bicycle lanes, traffic signal and control, lighting, curbing, guttering, landscaping, drainage and safety improvements and curbside pedestrian infrastructure such as sidewalks, bus pickup structures and concrete waiting pads. If the issuance of the Transportation System Bonds is approved, the Transportation System Bonds shall be secured by a pledge of and lien upon all of the receipts of a special citywide sales and use tax at the rate of one percent (1.00%) levied pursuant to the Local Government Bond Act (the "Bond Tax"). Vote on the question by placing an "X" in one of the squares following the question, either for or against: Page 6 Ordinance: 6920 File Number: 2025-2030 FOR the issuance of Transportation System Bonds in principal amount not to exceed $56,000,000......................................................................... ❑ AGAINST the issuance of Transportation System Bonds in principal amount not to exceed $56,000,000......................................................................... ❑ Question Seven (7) — Sustainability Bonds: There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of capital improvement bonds in principal amount not to exceed $1,050,000 (the "Sustainability Bonds") pursuant to the Local Government Bond Act (as defined in Question One) for the purpose of financing all or a portion of the costs of land acquisition, design, construction and equipping of a Recycling Drop -Off Facility and a Household Hazardous Waste Facility, and which may include other ancillary improvements such as street and utility extensions and improvements, landscaping and parking. If the issuance of the Sustainability Bonds is approved, the Sustainability Bonds shall be secured by a pledge of and lien upon all of the receipts of a special citywide sales and use tax at the rate of one percent (1.00%) levied pursuant to the Local Government Bond Act (the "Bond Tax"). Vote on the question by placing an "X" in one of the squares following the question, either for or against: FOR the issuance of Sustainability Bonds in principal amount not to exceed $1, 05 0, 000................................................................................... ❑ AGAINST the issuance of Sustainability Bonds in principal amount not to exceed $1,050,000.................................................................................... ❑ Question Eight (8) — Aquatics/Recreation Center Bonds: There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of capital improvement bonds in principal amount not to exceed $61,900,000 (the "Aquatics/Recreation Center Bonds") pursuant to the Local Government Bond Act (as defined in Question One) for the purpose of financing all or a portion of the costs of land acquisition, design, construction and equipping of an Aquatics/Recreation Center, which may include aquatic features such as indoor and/or outdoor pools and other auxiliary water features, recreational and sports facilities, multi -purpose rooms and offices, and which may also include other ancillary improvements such as street and utility extensions and improvements, landscaping and parking. If the issuance of the Aquatics/Recreation Center Bonds is approved, the Aquatics/Recreation Center Bonds shall be secured by a pledge of and lien upon all of the receipts of a special citywide sales and use tax at the rate of one percent (1.00%) levied pursuant to the Local Government Bond Act (the "Bond Tax"). Vote on the question by placing an "X" in one of the squares following the question, either for or against: Page 7 Ordinance: 6920 File Number: 2025-2030 FOR the issuance of Aquatics/Recreation Center Bonds in principal amount not to exceed $61,900,000......................................................................... ❑ AGAINST the issuance of Aquatics/Recreation Center Bonds in principal amount not to exceed $61,900,000.................................................................. ❑ Question Nine (9) — Fire Department Bonds: There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of capital improvement bonds in principal amount not to exceed $18,650,000 (the "Fire Department Bonds") pursuant to the Local Government Bond Act (as defined in Question One) for the purpose of financing all or a portion of the costs of the design, construction and equipping of a Fire Training Facility to be located on City -owned land at 2515 E. Borick Drive, land acquisition, design, construction and equipping of a Fire Station, and acquisition of firefighting vehicles, equipment and apparatus, and which may include other ancillary improvements such as street and utility extensions and improvements, landscaping and parking. If the issuance of the Fire Department Bonds is approved, the Fire Department Bonds shall be secured by a pledge of and lien upon all of the receipts of a special citywide sales and use tax at the rate of one percent (1.00%) levied pursuant to the Local Government Bond Act (the "Bond Tax"). Vote on the question by placing an "X" in one of the squares following the question, either for or against: FOR the issuance of Fire Department Bonds in principal amount not to exceed $18,650,000.................................................................................. ❑ AGAINST the issuance of Fire Department Bonds in principal amount not to exceed $18,650,000......................................................................... ❑ Section 5. 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, 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 6. That a copy of this Ordinance shall be given to the Washington County Clerk and to the Washington County Board of Election Commissioners at least seventy (70) days prior to the date of the special election 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 and to the Treasurer of the State of Arkansas as soon as practical. Section 7. That the results of the special election shall be proclaimed by the Mayor, and her 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 Page 8 Ordinance: 6920 File Number: 2025-2030 Court of Washington County within thirty (30) days after the date of publication of the proclamation. Section 8. 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 the Refunding Bonds and any of the capital improvement bonds described herein are approved by the electors, to cause the Bond Tax to be collected in accordance with the Local Government Bond Act, and to perform all acts of whatever nature necessary to carry out the authority conferred by this Ordinance. Section 9. That the City considers this Ordinance to be its declaration of official intent to issue the Bonds and to make reimbursement to the City with a portion of the proceeds thereof for all original expenditures incurred by the City in acquiring, constructing or equipping any of the projects described herein between the date that is sixty (60) days prior to the date of this Ordinance and the date a series of Bonds is issued, 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 10. That Kutak Rock LLP is hereby engaged as Bond Counsel and Stephens Inc. is hereby engaged as Underwriter with respect to the issuance of the 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 11. 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 12. That all ordinances and parts thereof in conflict herewith are hereby repealed to the extent of such conflict. Page 9 Additional Information Received Date Received: 10/14/2025 M M/D D/YYYY Time: 00.00 (AM/PM) 5.30 PM From: Name & Title Chief of Staff Keith Macedo To: Name & Title City Council Council Agenda Meeting Date: 10/14/2025 M M/D D/YYYY Civic Clerk Number: 2025-2030 Ex. 2025-994 Forwarded to City Attorneys Office and City Attorney received a copy during the Agenda Session Department Head FAYErrEVIARKANSAS BOND2026 a�KA�s�E�«E INVESTING IN OUR FUTURE - WITHOUT RAISING TAXES Fayetteville is growing fast. Our infrastructure needs to keep pace. Many of the systems we rely on every day need significant maintenance and repair. The 2026 Bond allows the City to catch up on essential improvements and prepare for the future using the existing one -cent sales tax, with no increase to residents. 1IAX_` l I y:1:-V =kFATA= .0� Essential upgrades to keep our systems reliable, protect clean water, and support current and future housing and business development. • Increase capacity at the Noland Wastewater Treatment Plant with critical Phase 1 and 2 upgrades that replace aging systems and maintain service reliability during construction. • Repair the original 36-inch Beaver Water District transmission line to prevent future catastrophic failures and safeguard the city's primary water supply. • Rehabilitate major water storage tanks to maintain safe capacity and ensure system resiliency through the next decade. Upgrades and expansions that improve public spaces, strengthen neighborhood amenities, and support recreation, tourism, and local economies. • Reinvest in community parks citywide with modern playgrounds, athletic fields, & accessible design. • Preserve green space through strategic land acquisition for future parks & environmental resilience. • Enhance quality of life by providing safe, inclusive places for play, connection, and cultural expression. ANIMAL SERVICES FACILITY A modern, energy -efficient shelter that provides better adoption experiences and veterinary services. • Replace the city's 50-year-old facility with a humane, healthy environment for animals and a welcoming space for adopters and volunteers. • Expand outreach programs to help families in need keep their pets and access veterinary care. • Reflect Fayetteville's values of compassion, responsibility, and pride through a facility worthy of the people and animals it serves. Side paths, trail reconstructions, and safe routes connect neighborhoods, schools, and parks for a more walkable, livable city. • Build new sidepaths & replace aging trail surfaces with durable concrete to maintain long-term quality. • Connect schools, parks, & commercial areas to neighborhoods for safe, non -motorized travel. • Leverage grant opportunities to expand Fayetteville's nationally recognized trail network. ROADS & TRANSPORTATION Safer streets, smoother commutes, & better connections across Fayetteville make it easier to get to work, school, and local businesses. • Improve intersections, turn lanes, corridors, & bridges to reduce congestion & improve safety citywide. • Complete key projects from the 2019 bond & invests in downtown lighting, sidewalks, & accessibility improvements. • Leverage grant funding & maintains a contingency fund to extend resources & respond quickly to growth -driven needs. SUSTAINABILRY& RECYCLJNG A west -side recycling site that reinforces Fayetteville's Climate Action goals & commitment to green initiatives. • Build anew recycling drop-off facility to serve residents and businesses west of 1-49 and reduce overflow at the Marion Orton site. • Add a permanent household hazardous -waste center for safe disposal of paints, fertilizers, sharps, and electronics. • Advance the City's Waste -Reduction strategies and expands equitable access to sustainable services. A year-round facility that adds new opportunities for families, adults, & youth, attracts regional events, & generates local economic activity. • Provide indoor & outdoor swimming, water safety instruction, & fitness programming for all ages. • Respond to public demand identified in the year -long feasibility study, where more than 2,800 residents called for expanded aquatic access. • Strengthen community ties & wellness through inclusive recreation, competition, & therapeutic spaces. FIRE FACILITIES & EQUIPMENT New stations, equipment, and a modern training facility ensure rapid emergency response city-wide and protect homes and workplaces as Fayetteville grows. • Build anew west -side fire station & modern training facility to support the projected 46% pop. growth. • Replace aging apparatus and equipment to improve firefighter safety and reliability. • Expand coverage and readiness as personnel increase to meet long-term service demands. Action based on the vision V/ of City Plan 2040. Feasibility & Rate Study -driven project selection to avoid costly rate hikes for all residents. ✓Community engagement and conversation supported priorities for improved quality of life in Fayetteville. THE INVESTMENT FAYETTEVILLE NEEDS NOW This bond funds essential upgrades that protect health, safety, and quality of life while supporting housing, jobs, and sustainable growth - all with no tax increase. 1 itiNediAa Account #: N WCL5004205 Company: CITY OF FAYETTEVILLE-CLERKS OFFI 113 W MOUNTAIN FAYETTEVILLE, AR 72701 Ad number #: 549586 PO #: Matter of: ORD 6920 AFFIDAVIT • STATE OF ARKANSAS Form v1 M RECEIVED OCT 2 8 2025 CITY CP FAVE'TEVII I.-E CITY CLERKS OrPCE I. Maria Hernandez -Lopez , do solemnly swear that I am the Legal Clerk of the NWA Democrat Gazette, a daily nea spaper printed and published in WASHINGTON/BENTON county, State of ARKANSAS; that I was so related to this publication at and during the publication of the annexed legal advertisement in the matter of ORD 6920 Pending in the court, in said County, and at the dates of the several publications of said advertisement stated below, and that during said periods and at said dates, said newspaper was printed and had a bona fide circulation in said County, that said newspaper had been regularly printed and published in said county, and had a bona fide circulation therein for the period of one month before the date of the first publication of said advertisement; and that said advertisement was published in the regular daily issues of said newspaper as stated below. And that there is due or has been paid the NWA Democrat Gazette for publication the sum of $3,154.13. 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