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HomeMy WebLinkAboutOrdinance 4327 �1 fi/( tD ORDINANCE NO. 4327 CO C 0 P� 1 � lNO//LP�o�HFTa��� IDS 8 AN ORDINANCE CALLING AN ELECTION ON THE QUES"118-) 01 THEE ISSUANCE OF NOT TO EXCEED ONE HUNDRED TWENTY PIS MILLION DOLLARS ($ 125,000,000) OF CAPITAL IMPROVEMENT BOND BY THE CITY FOR THE PURPOSE OF FINANCING ALL OR A PORTION OF THE COSTS OF THE ACQUISITION, CONSTRUCTION, RECONSTRUCTION, EXTENDING, IMPROVING AND EQUIPPING OF WASTEWATER TREATMENT PLANTS, SEWERAGE, AND RELATED FACILITIES ; LEVYING A SPECIAL LOCAL SALES AND USE TAX AT THE RATE OF THREE-QUARTERS OF ONE PERCENT (0.75%) WITHIN THE CITY TO BE PLEDGED TO THE PAYMENT OF THE BONDS, WHICH LEVY SHALL CEASE UPON RETIREMENT OF THE BONDS ; CALLING AND SETTING A DATE FOR A SPECIAL ELECTION ON THE QUESTION OF THE ISSUANCE OF THE BONDS; DEFINING THE TERM "SINGLE TRANSACTION"; AND PRESCRIBING OTHER MATTERS PERTAINING THERETO. WHEREAS, the City Council of the City of Fayetteville, Arkansas recognizes and determines there is a great and pressing need to substantially increase the City's wastewater treatment capacity; and WHEREAS, if the citizens of Fayetteville elect to use a special citywide sale tax to finance this capital improvement, many millions of dollars of financing expense would be saved in comparison with financing this improvement by a large increase in sewer rates for the customers of the Fayetteville wastewater system; and WHEREAS, the City Council of the City of Fayetteville, Arkansas has determined that there is a great need for additional sources of revenue to finance capital improvements to meet the needs of the residents of the City; and WHEREAS, Title 14, Chapter 164, Subchapter 3 of the Arkansas Code of 1987 Annotated (the "Local Government Bond Act of 1985") authorizes the issuance of capital improvement bonds by cities, which bonds may be secured by the pledge of the receipts of the special citywide sales and use tax prescribed by the Local Government Bond Act of 1985; and WHEREAS, said special citywide sales and use tax is to be levied and collected only on the first $2,500 of each single transaction; and WHEREAS, an existing citywide sales and use tax is presently being levied pursuant to the Local Government Bond Act at the rate of One Percent (1 %), which levy 0 • Ord . No . 4327 expires on March 31, 2002; and WHEREAS, if approved by the electors of Fayetteville the City Council of Fayetteville, Arkansas has determined to issue its capital improvement bonds in principal amount not to exceed One Hundred Twenty-Five Million Dollars ($125,000,000) for the purpose of financing all or a portion of the costs of the acquisition, construction, reconstruction, extending, improving, and equipping of wastewater treatment plants, sewerage and related facilities, which Bonds are to be secured by the pledge of all of the receipts of a three-quarters of one percent (0.75 % ) special citywide sales and use tax, as authorized by 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 of Fayetteville, and to define the term "single transaction'; NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Fayetteville, Arkansas: Section 1. That under the authority of the Local Government Bond Act and subject to the approval by the electors of the City of Fayetteville as provided in Section 3 below, there is hereby authorized the issuance of the City's capital improvement bonds in the aggregate principal amount of not to exceed One Hundred Twenty-Five Million Dollars ($125,000,000) (the "Bonds') for the purpose of financing all or a portion of the costs of acquiring, constructing, reconstructing, extending, improving and equipping wastewater treatment plants, sewerage and related facilities (the " Project" ). If the issuance of the Bonds is approved by the electors of the City, the Bonds may thereafter be issued in one or more series from time to time in an aggregate principal amount not to exceed the principal amount approved by the City's electors. If approved by the electors of the City and issued, the Bonds shall be secured by a pledge of and a lien upon all of the receipts of a three-quarters of one percent (0.75 % ) special citywide sales and use tax (the "Sales and Use Tax"), as authorized by the Local Government Bond Act. Section 2. That under the authority of the Local Government Bond Act and subject to approval by the electors of the City as provided in Section 3 below, there is hereby levied the Sales and Use Tax at the rate of three-quarters of one percent (0.75 %) 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 (Arkansas Code of 1987 Annotated §26-52-101 et seq.), and an excise (or use) tax on the storage, use, distribution or other consumption within the City of tangible personal property purchased, leased or rented from any retailer outside the State of Arkansas after the effective date of the Sales and Use Tax for storage, use, distribution or other consumption in the City at the 2 • • Ord . 4327 rate of three-quarters of one percent (0.75 %) on the sale price of the property or, in the case of leases or rentals, on the lease or rental price, the rate of the use tax to correspond to the rate of the sale tax. The use tax portion of the Sales and Use Tax shall be collected according to the terms of the Arkansas Compensating Tax Act of 1949, as amended (Arkansas Code of 1987 Annotated §26-53-101 et seq.). The Sales and Use Tax shall be levied and collected only on the first $2,500 of each "single transaction" (as defined in Section 9 hereof). The levy and collection of the Sales and Use Tax shall commence on April 1, 2002 and shall cease upon retirement of the Bonds. Section 3. That there be, and there is hereby called, a special election to be held on Tuesday, November 6, 2001, at which election there shall be submitted to the electors of the City the question of the issuance of the Bonds. Section 4. That the question shall be placed on the ballot for the special election in substantially the following form: 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 One Hundred Twenty-Five Million Dollars [$125,000,000] (the 'Bonds") pursuant to Title 14, Chapter 164, Subchapter 3 of the Arkansas Code of 1987 Annotated (the "Local Government Bond Act of 1985") for the purpose of financing all or a portion of the costs of the acquisition, construction, reconstruction, extending, improving and equipping of the Wastewater System Improvement Project which encompasses building and equipping a second wastewater treatment plant, modifying, extending and improving the sewer collection system, reconstruction and improving the current wastewater treatment plant, making land and equipment purchases, procuring construction and professional services, obtaining regulatory approvals and permits, and doing all other necessary things to increase and improve the City of Fayetteville's wastewater treatment capacity and related facilities. If the issuance of the Bonds is approved, the 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 three-quarters of one percent (0.75 %) levied pursuant to the Local Government Bond Act (the "Sales and Use Tax"). If the issuance of the Bonds is approved, the levy and collection of the Sales and Use Tax shall commence on April 1, 2002 and shall cease upon retirement of the Bonds. 3 • • Ord . 4327 Vote on the question by placing an "X" in one of the squares following the question, either for or against: FOR the issuance of Bonds in principal amount not to exceed One Hundred Twenty-Five Million Dollars ($125,000,000) for the purpose of financing all or a portion of the costs of acquiring, constructing, reconstructing, extending, improving and equipping wastewater treatment plants, sewerage and other related improvements . . . . . . . . . . . . . . . ❑ AGAINST the issuance of Bonds in principal amount not to exceed One Hundred Twenty-Five Million Dollars [$125,000,000] for the purpose of financing all or a portion of the costs of acquiring, constructing, reconstructing, extending, improving and equipping wastewater treatment plants, sewerage and other related improvements . . . . . . . . . . . . . . . ❑ 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 the Northwest Arkansas Times, 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 Board of Election Commissioners so that the necessary election officials and supplies may be provided. A certified copy of this Ordinance and a map clearly showing the boundaries of the City 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 his proclamation shall be published one time in the Northwest Arkansas Times. 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 levy of the issuance of the Bonds is approved by the electors, to cause the Sales and Use Tax to be collected in 4 0 • Ord . 4327 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, for purposes of the Sales and Use Tax, the term "single transaction' is defined according to the nature of the goods purchased as follows: A. When two or more devices in which, upon which or by which any person or property is, or may be, transported or drawn, including, but not limited to, on-road vehicles, off-road vehicles or farm vehicles, whether required to be licensed or not, airplanes, water vessels, motor vehicles, non-motorized vehicles and mobile homes, are sold to a person by a seller, each individual unit, whether part of a "fleet" sale or not, shall be treated as a single transaction for the purposes of the Sales and Use Tax; B. Charges for utility services which are subject to the Sales and Use Tax, and which are furnished on a continuous service basis, whether such services are paid for daily, weekly, monthly or annually, shall be computed in daily increments, and each such daily charge increment shall be considered to be a single transaction for the purposes of the Sales and Use Tax; C. For sales of building materials and supplies to contractors, builders or other persons, a single transaction, for the purposes of the Sales and Use Tax, shall be deemed to be any single sale which is reflected on a single invoice, receipt or statement, on which an aggregate sales (or use) tax figure has been reported and remitted to the State of Arkansas; D. When two or more items of major household appliances, commercial appliances, major equipment or machinery are sold, each individual unit shall be treated as a single transaction for the purposes of the Sales and Use Tax; and E. For groceries, drug items, dry goods and other tangible personal property and/ or services not expressly covered in this Section 9, a single transaction, for the purposes of the Sales and Use Tax, shall be deemed to be any single sale which is reflected on a single invoice, receipt or statement, on which an aggregate sales tax figure has been reported and remitted to the State of Arkansas. 5 0 0 Ord . 4327 Section 10. That Kutak Rock LLP is hereby engaged as Bond Counsel and Stephens Inc. is hereby engaged as Underwriter or Financial Advisor, as appropriate, with respect to the issuance of the Bonds. The fees and expenses of Bond Counsel and the Underwriter or Financial Advisor shall be a cost of issuance of the Bonds to be paid with Bond proceeds, if allowed. Section 11. That all ordinances and parts thereof in conflict herewith are hereby repealed to the extent of such conflict. PASSED AND APPROVED this 7th day of August, 2001 . APPROVED: By -4W- &Q Z��4 : : F DAN GOODY, Mayor sok By: He _err Woodruff, City Clerk (S E A L) cJ CERTIFICATE The undersigned, City Clerk of the City of Fayetteville, Arkansas, hereby certifies that the foregoing is a true and perfect copy of an Ordinance adopted at a regular meeting of the City Council of the City of Fayetteville, Arkansas, held in Room 219 of the City Administration Building at 6:30 p.m. on August 7, 2001 . DATED: August 8, 2001 Heaer Woodruff f, City Clerk 1. Lt 6 c© Py FAYET7 r. ILLE SPECIAL ELE& ON BALLOT M M 'A= CITY OF FAYETTEVILLF BM WASHINGTON COUNTY CM NOVEMBER 6, 2001 INSTRUCTIONS TO VOTER 1 . TO VOTE YOU MUST BLACKEN - " THE OVAL ( � ) COMPLETELY - NEXT TO YOUR CHOICE. 2.USE ONLY THE PENCIL PRO- VIDED. 3. AFTER VOTING, DEPOSIT THE - BALLOT IN THE BALLOT BOX, BALLOT STUB IN STUB BOX. r 0 There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of capital improvement bonds in prin- cipal amount not to exceed One hun- dred Twenty-Five Million Dollars [$125,000,000] (the "Bonds°) pursuant - to Title 14, Chapter 164, Subchapter 3 of the Arkansas Code of 1987 Annotated (the "Local Government Bond Act of 1985") for the purpose of financing all or a portion of the costs of the acquisition, construction, recon- struction, extending, improving and equipping of the Wastewater System Improvement Project which encom- passes building and equipping a sec- ond wastewater treatment plant, modi- 49 fying, extending and improving the sewer collection system, reconstruc- 4, tion and improving the current waste- water treatment plant, making land u and equipment purchases, procuring construction and professional ser- M 43 M vices, obtaining regulatory approvals and permits, and doing all other neces- sary things to increase and improve the City of Fayetteville's wastewater treatment capacity and related facili- ties. If the issuance of the Bonds is approved, the 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 three-quarters of one percent (0.75%) levied pursuant to the Local Government Bond Act (the "Sales and Use Tax"). If the issuance of the Bonds is approved, the levy and 51 collection of the Sales and Use Tax - shall commence on April 1 , 2002 and shall cease upon retirement of the - Bonds. - O FOR the issuance of Bonds in prin- cipal amount not to exceed One - Hundred Twenty-Five Million Dollars ($125,000,000) for the pur- pose of financing all or a portion of the costs of acquiring, construct- ing, reconstructing, extending, improving and equipping waste- water treatment plants, sewerage and other related improvements. - o AGAINST the issuance of Bonds in principal amount not to exceed - One Hundred Twenty-Five Million Dollars ($125,000,000) for the pur- pose of financing all or a portion of the costs of acquiring, construct- ing, reconstructing, extending, improving and equipping waste- water treatment plants, sewerage and other related improvements. B1C= 001 © Esas 1981 NAME OF FILE: Ordinance No. 4327 CROSS REFERENCE: 08/07/01 Ordinance No. 4327 08/15/01 Letter from Heather Woodruff, City Clerk, to the Washington County Election Commission regarding a city-wide special election to be held on Tuesday, November 6, 2001 . 08/ 10/01 & Proof of Publication 08/12/2001 NOTES : FAYETTEVIPLE THE CITY OF FAYETTEVILLE, ARKANSAS August 15, 2001 Washington County Election Commission 280 North College Fayetteville, Arkansas 72701 Dear Sir or Madam: Enclosed please find a copy of Fayetteville Ordinance 4327 calling for a city-wide special election to be held on Tuesday, November 6, 2001 , on the question of levying a three-quarter of one per-cent city-wide sales and use tax. The proceeds of which shall be used for the purpose of paying all or a portion of the costs associated with wastewater treatment facilities. Please consider this letter a formal request pursuant to Section 6 of the ordinance for the Washington County Election Commission to provide for the necessary election officials and supplies for such election. If there is anything further that we may do to cooperate and ensure the timely and orderly election called for in the ordinance you have only to ask. Please feel free to call me at 575-8323 or City Attorney Kit Williams at 575-8313 for any assistance or information you may require. Sincerely, / Hea er Woodruff City Clerk 113 WEST MOUNTAIN 72701 501521-7700 FAX 501575-8257 Arkansas De mocrat wcOz AFFIDAVIT 011PUBLICA"PION RECEIVED 1 AUG 14 2001 CITY OF FAYETTEVILLE swcal' 111a1: 1 ant Lcoal Glak OEllic Arlwnsas CITY CLERICS OFFICE llcnlocl:lt-GclzcttcNcwspapcl', prinlul anil puhlishcul al, l .c,l,vcll , Arkan:;as ;uli1 . 111a1 From 1113, ilwn per:;unal knuwlcdi ,c and 1'cfct'cncc Lo Lhc flIcs Of saiLl publication the advcrtiscmcnL of' \\kc: im :rfcd in the rc�ular cdiliuns on Publiallion Ch;lrl,c _�f��7_�S__ Purchase OrLlu' II Subscribed and sworn to U rc nic alis 2001 . NoULl'y Public My commission cxpirc:; OFFICIAL SEAL t ' CAgRO��LyYbN� COAKLEY Eqpt ro idgT9, asa ULS lvcnuc, l:lycltcvitic, Arl;anm:i "2"101 , (50 ] )S"71 -6167 08 - 14 - GIA70 : 20 RCVD NORTHWEST ARKANSAS TIMER Sunday, Ootpber 14, 2001 A3 VA J/ Aa4,6,ev Zk CITY OF FAYMEVILLE NOTICE OF SPECIAL ELECTION Notice is hereby given that the City of Fayetteville, Arkansas, will hold a special election on November 6,2001 , at which there will be submitted to the electors of the City the question of the levy of the Sales and Use Tax in substan- tially the following form: Vote on each question by placing an "X" in the square oppo- site the question either "FOR" or "AGAINST": ❑ FOR the issuance of Bonds in principal amount not to exceed One Hundred Twenty-Five Million Dollars ($125,000,000) for the purpose of financing all or. a portion of the costs of acquiring, constructing, reconstructing, extending, improving and equipping wastewater treatment plants, sewerage and other related improvements. ❑ AGAINST the issuance of Bonds in principal amount not to 'exceed One Hundred Twenty-Five Million Dollars ($ 125,000,000) for the purpose of financing all or a portion of the costs of acquiring, constructing, reconstructing, extending, improving and equipping wastewater treatment plants, sewerage and other related improvements. If approved by the voters, the Bonds shall be paid by the levy of a three-quarters of one percent (0.75%) sales and use tax (pledged exclusively to payment of these Bonds) which shall begin on April 1 , 2002 after the termination of the current one percent ( 1 .00%) sales and use tax which has funded the City Library's new construction. Upon payment in full of the Bonds. authorized i above, the levy of the sales'rand useF'taxl P.75%) shall eease automatically. . . I T i" - J_ MICROFILMED - AFFIDAVIT OF PUBLICATION STATE OF ARKANSAS, County of Washington L ,\ m �\ ' n� ,�1 do solemnly swear that I am of The Morning News of Northwest Arkansas, a daily newspaper having a general circulation in said county, and do solemnly swear the said ad- vertisement was published for consecutive in said newspaper, the said publication ap- pearing: day of�� l day of " day of r ' day of day of f � Sub n re me thi � �— day of Misty Fischer No1+Y Public - Arkansas of :. 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