HomeMy WebLinkAboutOrdinance 4891 N
P
ORDINANCE NO, 4891 �o' r
r
W
AN ORDINANCE CALLING AND SETTING A DATE FOR A SPECIAL
ELECTION ON THE QUESTIONS OF THE ISSUANCE BY THE CITY OF (1 )
NOT TO EXCEED $25,000,000 OF CAPITAL IMPROVEMENT BONDS FOR
THE PURPOSE OF FINANCING CERTAIN WASTEWATER SYSTEM
IMPROVEMENTS, (2) NOT TO EXCEED $ 17,000,000 OF CAPITAL
IMPROVEMENT BONDS FOR THE PURPOSE OF DIRECTLY FINANCING
OR REFUNDING REVENUE BONDS ISSUED TO FINANCE CERTAIN
WASTEWATER SYSTEM IMPROVEMENTS, (3) NOT TO EXCEED
$653900,000 OF CAPITAL IMPROVEMENT BONDS FOR THE PURPOSE OF
FINANCING CERTAIN STREET IMPROVEMENTS, AND (4) NOT TO
EXCEED $2, 100,000 OF CAPITAL IMPROVEMENT BONDS FOR THE
PURPOSE OF FINANCING CERTAIN TRAIL SYSTEM IMPROVEMENTS;
LEVYING A SPECIAL LOCAL SALES AND USE TAX AT THE RATE OF
ONE-QUARTER OF ONE PERCENT (0.25%) AND LEVYING A
REPLACEMENT SPECIAL LOCAL SALES AND USE TAX AT THE RATE
OF THREE-QUARTERS OF ONE PERCENT (0.75%) FOR THE PURPOSE OF
RETIRING SUCH BONDS; AND PRESCRIBING OTHER MATTERS
PERTAINING THERETO
WHEREAS, the City Council of the City of Fayetteville, Arkansas (the "City") has
determined that there is a critical need for an additional source of revenue to finance wastewater
facilities and street and trail improvements within the City; and
WHEREAS, Amendment 62 to the Constitution of the State of Arkansas ("Amendment
62") and Title 14, Chapter 164, Subchapter 3 of the Arkansas Code of 1987 Annotated (the
"Local Government Bond Act") authorize the issuance of 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 prescribed by the Local Government Bond Act; and
WHEREAS, said special citywide sales and use taxes are to be levied and collected only
on the first $2,500 of each single transaction; and
WHEREAS, the City has previously issued and there are presently outstanding (i) its not
to exceed $20,000,000 Sales and Use Tax Revenue Bond, Series 2006 (the "Series 2006 Bond"),
(ii) its $27,000,000 Sales and Use Tax Refunding and Capital Improvement Bonds, Series 2005A
(the "Series 2005A Bonds"), and (iii) its $43,995,000 Sales and Use Tax Capital Improvement
Bonds, Series 2005B (the "Series 2005B Bonds," and together with the Series 2006 Bond and
the Series 2005A Bonds, the "Prior Bonds"); and
WHEREAS, the Prior Bonds are secured by and payable from the receipts of a three-
quarters of one percent (0.75%) special citywide sales and use tax previously levied under the
authority of the Local Government Bond Act (the "Prior Tax"); and
WHEREAS, if approved by the electors of the City, the City has determined to issue ( 1 )
its capital improvement bonds in principal amount not to exceed $25,000,000 for the purpose of
financing certain wastewater system improvements, (2) its capital improvement bonds in
principal amount not � to exceed $ 17,000,000 for the purpose of financing certain additional
wastewater system improvements or to refund water and wastewater revenue bonds originally
issued to finance said improvements, (iii) its capital improvement bonds in principal amount not
to exceed $65,900,000 for the purpose of financing certain street improvements, and (iv) its
capital improvement bonds in principal amount not to exceed $2, 100,000 for the purpose of
financing certain trail system improvements (collectively, the "Bonds"), which Bonds are to be
secured by (a) a pledge of and lien upon all of the receipts of a one-quarter of one percent
(0.25%) special citywide sales and use tax (the "0.25% Sales and Use Tax") and (b) when all of
the Prior Bonds have been retired from the receipts of the Prior Tax, a pledge of and lien upon all
of the receipts of a three-quarter of one percent (0.75%) special citywide sales and use tax (the
"0.75% Sales and Use Tax") replacing the Prior Tax, 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 of the issuance of any series of the Bonds by the electors of the City
as provided in Section 3 below, there are hereby levied (i) a sales tax at the rate of one-quarter of
one percent (0.25%) and (ii) a sales 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 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 el seq.), and (iii) an excise (or use) tax at the rate of one-quarter of one
percent (0.25%) and (iv) an excise (or use) tax at the rate of three-quarters of one percent
(0. 75%) 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,
2
the "Sales and Use Tax"). 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 0.25% Sales and Use Tax shall commence on and as of such date as provided in the Local
Government Bond Act, and shall cease upon retirement in full of the Bonds. The levy and
collection of the 0.75% Sales and Use Tax shall commence on the day following the date of
expiration of the Prior Tax, and shall cease upon retirement in full of the Bonds. Any collections
of the Prior Tax received after its expiration shall be used, if necessary or appropriate, to provide
for the payment of debt service on the Bonds. Revenues resulting from the collection of the Sales
and Use Tax shall be utilized solely for the payment of debt service on the Bonds.
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 as provided in Section 3 below, there is
hereby authorized (1 ) the issuance of the City's capital improvement bonds in the aggregate
principal amount of not to exceed $25,000,000 for the purpose of financing all or a portion of the
costs of acquisition, construction, reconstruction, extension and equipping of certain
improvements to the City's wastewater treatment plants, sewerage and related facilities,
including right-of-way acquisition, (2) the issuance of the City's capital improvement bonds in
the aggregate principal amount of not to exceed $ 17,000,000 for the purpose of directly
financing all or a portion of the costs of acquisition, construction, reconstruction, extension and
equipping of certain improvements to the City' s wastewater treatment plants, sewerage and
related facilities, including right-of-way acquisition, or, alternatively, for the purpose of
refunding water and wastewater revenue bonds originally issued to finance said improvements,
(3) the issuance of the City's capital improvement bonds in the aggregate principal amount of not
to exceed $65,900,000 for the purpose of financing all or a portion of the costs of acquisition,
construction, reconstruction, repair, straightening and widening of certain City streets, which
may include related sidewalk, traffic signal and control, curbing, guttering and drainage
improvements and right-of-way acquisition, and (4) the issuance of the City's capital
improvement bonds in the aggregate principal amount of not to exceed $2, 100,000 for the
purpose of financing all or a portion of the costs of acquisition and construction of certain City
trail system improvements, which may include related pedestrian signal and drainage
improvements and right-of-way acquisition. If the issuance of any of the aforementioned capital
improvement bonds (collectively, the "Bonds") is approved by the electors of the City, such
Bonds may thereafter be issued in one or more series from time to time in an aggregate principal
amount not to exceed the respective principal amount(s) 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 the Sales and Use 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, September 12, 2006, 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:
3
Cu i
The bonds described below that are approved may be combined into a single issue or may
be issued in series from time to time. If the bonds for one or more of the purposes described
below are approved, there will be levied (i) a one-quarter of one percent (0.25%) sales and use
tax (the "0.25% Sales and Use Tax") and (ii) a three-quarter of one percent (0.75%) sales and use
tax (the "0.75% Sales and Use Tax"), the net collections of which remaining after the State of
Arkansas deducts its administrative charges will be used solely to retire the bonds and
obligations of the City with respect thereto. The levy and collection of the 0.25% Sales and Use
Tax will commence on January 1 , 2007. The aforementioned 0.75% Sales and Use Tax will
replace an existing three-quarters of one percent sales and use tax (the "Prior Tax"). The Prior
Tax is pledged to the payment of certain existing indebtedness of the City and will continue to be
levied and collected until such existing indebtedness is paid in full. The levy and collection of
the 0.75% Sales and Use Tax shall commence on the day following the date of expiration of the
Prior Tax.
Question One:
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 $25,000,000 (the "Wastewater Improvement Bonds") pursuant to Title
14, Chapter 164, Subchapter 3 of the Arkansas Code of 1987 Annotated (the
"Local Government Bond Act") for the purpose of financing all or a portion of the
costs of acquisition, construction, reconstruction, extension and equipping of
certain improvements to the City's wastewater treatment plants, sewerage and
related facilities. If the issuance of the Wastewater Improvement Bonds is
approved, the Wastewater Improvement Bonds shall be secured by a pledge of
and lien upon (i) all of the receipts of the 0.25% Sales and Use Tax and (ii) all of
the receipts of the 0.75% Sales and Use Tax, each levied pursuant to the Local
Government Bond Act.
Vote on the question by placing an "X" in one of the squares following the
question, either for or against:
FOR the issuance of Wastewater Improvement Bonds in principal amount not to
exceed $25,000,000 for the purpose of financing all or a portion of the costs of
acquisition, construction, reconstruction, extension and equipping of certain
improvements to the City's wastewater treatment plants, sewerage and related
facilities, including right-of-way acquisition . . . .." I ' ll " . . . . . . . . . . . . . . . . . . . . . .... . .....❑
AGAINST the issuance of Wastewater Improvement Bonds in principal amount
not to exceed $25 ,000,000 for the purpose of financing all or a portion of the costs
of acquisition, construction, reconstruction, extension and equipping of certain
improvements to the City's wastewater treatment plants, sewerage and related
facilities, including right-of-way acquisition . . . . . ... . . . . . . . . . . . . . . . . . . . .. . . . . . . . . ... ...❑
4
Question Two:
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 $ 17,000,000 (the "Wastewater Improvement/Refunding Bonds")
pursuant to the Local Government Bond Act for the purpose of directly financing
all or a portion of the costs of acquisition, construction, reconstruction, extension
and equipping of certain improvements to the City' s wastewater treatment plants,
sewerage and related facilities (the "Project") or, alternatively, for the purpose of
refunding the City's water and wastewater revenue bonds originally issued to
finance all or a portion of the Project. If the issuance of the Wastewater
Improvement/Refunding Bonds is approved, the Wastewater
Improvement/Refunding Bonds shall be secured by a pledge of and lien upon
(i) all of the receipts of the 0.25% Sales and Use Tax and (ii) all of the receipts of
the 0.75% Sales and Use Tax, each levied pursuant to the Local Government
Bond Act.
Vote on the question by placing an "X" in one of the squares following the
question, either for or against:
FOR the issuance of Wastewater Improvement/Refunding Bonds in principal
amount not to exceed $ 17,000,000 for the purpose of financing or refinancing all
or a portion of the costs of acquisition, construction, reconstruction, extension and
equipping of certain improvements to the City's wastewater treatment plants,
sewerage and related facilities, including right-of-way acquisition . . . . . . . . . . . . . . ..❑
AGAINST the issuance of Wastewater Improvement/Refunding Bonds in
principal amount not to exceed $ 17,000,000 for the purpose of financing or
refinancing all or a portion of the costs of acquisition, construction,
reconstruction, extension and equipping of the improvements to the City' s
wastewater treatment plants, sewerage and related facilities, including right-of-
wayacquisition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . . . . . ..❑
Question Three:
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 $65,900,000 (the "Street Improvement Bonds") pursuant to the Local
Government Bond Act for the purpose of financing all or a portion of the costs of
acquisition, construction and equipping of certain street improvements. If the
issuance of the Street Improvement Bonds is approved, the Street Improvement
Bonds shall be secured by a pledge of and , lien upon (i) all of the receipts of the
0.25% Sales and Use Tax and (ii) all of the receipts of the 0.75% Sales and Use
Tax, each levied pursuant to the Local Government Bond Act.
Vote on the question by placing an "X" in one of the squares following the
question, either for or against:
5
FOR the issuance of Street Improvement Bonds in principal amount not to exceed
$65,900,000 for the purpose of financing all or a portion of the costs of
acquisition, construction, reconstruction, repair, straightening and widening of
certain City streets, which may include related sidewalk, traffic signal and control,
curbing, guttering and drainage improvements and right-of-way acquisition 1.1110
AGAINST the issuance of Street Improvement Bonds in principal amount not to
exceed $65 ,900,000 for the purpose of financing all or a portion of the costs of
acquisition, construction, reconstruction, repair, straightening and widening of
certain City streets, which may include related sidewalk, traffic signal and control,
curbing, guttering and drainage improvements and right-of-way acquisition . . ...❑
Question Four:
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 $2, 100,000 (the "Trail Improvement Bonds") pursuant to the Local
Government Bond Act for the purpose of financing all or a portion of the costs of
acquisition, construction and equipping of certain City trail system improvements.
If the issuance of the Trail Improvement Bonds is approved, the Trail
Improvement Bonds shall be secured by a pledge of and lien upon (i) all of the
receipts of the 0.25% Sales and Use Tax and (ii) all of the receipts of the 0.75%
Sales and Use Tax, each levied pursuant to the Local Government Bond Act.
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 Improvement Bonds in principal amount not to exceed
$2, 100,000 for the purpose of financing all or a portion of the costs of acquisition
and construction of certain City trail system improvements, which may include
related pedestrian signal and drainage improvements and right-of-way
acquisition. . . . . . .... . . . . ... . .... . . . . . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . . . . . . . . ..... . . * * 699900 .0
AGAINST the issuance of Trail Improvement Bonds in principal amount not to
exceed $2, 100,000 for the purpose of financing all or a portion of the costs of
acquisition and construction of certain City trail system improvements, which
may include related pedestrian signal and drainage improvements and right-of-
wayacquisition . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .... . . . . . . . . ..❑
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.
6
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 shall also be provided to the Director of the Department of
Finance and Administration 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 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 any of the Bonds are approved by the electors,
to cause the Sales and Use 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, 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 (2) 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 or 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 (2) 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
7
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.
In the event that the General Assembly of the State of Arkansas shall define
"single transaction," the General Assembly's definition shall replace the one in this
Section 9.
Section 10. 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
the Projects approved by the voters 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 11 . 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 Bond to be paid
with Bond proceeds.
Section 12. 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 13 . That all ordinances and parts thereof in conflict herewith are hereby
repealed to the extent of such conflict. RjjTR1"'
PASSED and APPROVED this 20°i day of June, 2006. =�v'&SY OF' .GPc i
"c ; FAYETTEVILLE •
APPROVED: ATTEST: ;z ••,q PC,
n p y Reta go
KANS • �J�,.
am/ t-�'/NxZ�.L' NG ��N
JnOV zke
By: By: )
DAN COODY, Mayor SONDRA SMITH, City Clerk
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 ata regular meeting of the City
Council of the City of Fayetteville, Arkansas, held at 6:00 p.m. on June 20, 2006.
DATED: Llt1 o10 , 2006
SONDRA SMITH, City Clerk
TR�"��.,o
h�G .G\j Y O c'•rGpF
; FAY ETTEVILLE
;
:9s'9�'KAN`;Pc'J�c
GTO
9
L)
City of Fayetteville
Staff Review Form
City Council Agenda Items nc d
or %i9X �'
Contracts
6/20/2006
City Council Meeting Date
Marsha Farthing, Interim Fin. Dir. Finance and Internal Services
Gary Dumas, Dir. of Operations Operations
Submitted By Division Department
Action Required:
Acceptance of the combined recommendation of the Street Committee and Water and Sewer Committee to adopt .an
Ordinance calling for a Special Election to extend the current 3/4% capital sales tax and authorizing a 1 /4% capital
sales tax for a total of 1 %, for the purpose of issuing bonds and short-term debt to pay for additional costs of the
Waste Water Improvement Program and for Phase 1 of the Street Improvement Program.
$
Cost of this request Category / Project Budget Program Category / Project Name
$
Account Number Funds Used to Date Program / Project Category Name
Project Number Remaining Balance Fund Name
Budgeted Item Budget Adjustment Attached
O� Previous Ordinance or Resolution #
Department ire or (p Date Original Contract Date:
Original Contract Number:
City orney Date
Received in City Clerk's Office Q'
A Z
Financ and Internal Service Director Dale
Received in Mayor's Office
Q
Mayor Date
Comments:
•
Tayve evl le
ARKANSAS
OPERATIONS DIRECTOR
To: City Council
From: Gary Dum
Date: June 7, 200
Re: Accepting the Combined Recommendation of the Street Committee and Water and
Sewer Committee and Adopting an Ordinance Calling for a Special Election for
September 12, 2006 to Extend the Current 1/4 ¢ Capital Sales Tax, Authorize a V4 ¢
Capital Sales Tax, for a Total Sales Tax of 1 ¢, Issue Bonds and Short-Term Debt to Pay
for Additional Costs of the Waste Water System Improvement Program and for Phase 1
of the Transportation Improvement Program
Recommendation
Accept the Combined Recommendation of the Street Committee and Water and Sewer
Committee and Adopt an Ordinance Calling for a Special Election for September 12,
2006 to Extend the Current 1/4 ¢ Capital Sales Tax, Authorize a `/4 ¢ Capital Sales Tax, for
a Total Sales Tax of 1 ¢, Issue Bonds and Short-Term Debt to Pay for Additional Costs of
the Waste Water System Improvement Program and for Phase 1 of the Transportation
Improvement Program.
Background
The Waste Water System Improvement Program (WSIP) was initiated in 1996. The
predicted cost was $ 125,000,000 with an expected start of construction in 2003 . The
sales tax bond election occurred in 2001 with overwhelming approval. A Program
Management Firm was selected in 2002. Final design engineering began in 2003 . Final
Design Engineering was completed and subsequent Corps of Engineers Permit Approval
occurred without undo delay in 2005. Easement acquisition for the various pipeline
projects began in 2004 and award of construction contracts for pipeline, lift stations,
Noland Treatment Plant Improvements, and the Westside Treatment Plant occurred in
2005. The construction costs and project timeline were not updated between 2001 and
2005. The predicted costs increased along with the timeline extension. The contract date
for substantial completion of the critical element of the WSIP is the completion of the
West Treatment Plant and is May 2008. The total predicted cost of the WSIP, including
contingencies, is approximately $ 178,000,000. The initial $ 125,000,000 of bonds have
been issued and substantially programmed. The additional bond resources required for
completion of the WSIP is $38,000,000 plus the bond and debt placement and surety
costs.
The City Council Street Committee has for the last 18 months been discussing the need
for a major street improvement program based upon the community-wide Citizen
113 Wiest Mountain
Fayetteville, Arkansas 72701
Office phone - 479-575-8330
Fax - 479-575-8257
E-mail - gdumaseci.faycncvillc.acus
r
Surveys of 2004 and 2005 . The program has evolved during this time frame into 3-
phases. Phase 1 is proposed to be a 6-year $62,000,000 program, providing traffic
capacity and safety improvements and economic development opportunities to those
corridors with the most need. Later phases, through additional bond elections, will
address additional safety, capacity, and economic development needs. The resources
required for the initial phase of the Transportation Improvement Program is $62,000,000
plus the bond and debt placement and surety costs.
Discussion
Attached are the WSIP Funding Options and resulting Budget Adjustment Forms, a cash
flow and debt analysis for the total bond program, financing plan for the total
construction program, and the Phase 1 Transportation Improvement Program.
These items have been thoroughly discussed and evaluated by the Street Committee and
the Water and Sewer Committee during the past 18 to 24 months.
These two committees jointly recommend Adopting an Ordinance Calling for a Special
Election for September 12, 2006 to Extend the Current 1/4 ¢ Capital Sales Tax, Authorize
a '/4 ¢ Capital Sales Tax, for a Total Sales Tax of 10, Issue Bonds and Short-Term Debt to
Pay for Additional Costs of the Waste Water System Improvement Program and for
Phase 1 of the Street Improvement Program.
Ila West Mountain
Fayetteville, Arkansas 72701
Office phone - 479-575-8330
Fax - 479-575-8257
E-mail - gdumasCci.(ayeticvillc.ar.us