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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 It City of Fayetteville, Arkansas WSIP Funding Options 6/5/2006 Funding Needed Source: Water & Sewer Financing Total Identified Identified Revolving Loan Fund May 4, 2006 Identified ` Sources - Sources - Additional Debt Need Existing Future Page 6-1 $ 55,185,531 Less: Farmington Lift Station $ 4,725,000 Sewer System Cash 5,100,000 Wastewater Impact Fees - As of May 2006 2,500,000 REALLOCATION OF EXISTING PROJECT BUDGETS Water & Sewer Fund Sewer System Rehabilitation (2007-2009) 1,590,000 MT Sequoyah Sewer Improvement 200,000 I Sales Tax Capital Improvements Fund HWY 265 - 2006 Appropriation 1,000,000 Community Park - 2006 Appropriation 613,000 Total Existing Identified $ 15,728,000 Future Resources 35 Acre Land Sale $ 1,100,000 Total Future Resources $ 1,100,000 Bond Debt $ 38,357,531 Potential Future Resources Wastewater Impact Fees - 2007 to 2008 $ 2,250,000 J:\WSIP\Debt Issues\WSIP_Additional Funding Sources_June 5 2006 City of Fayetteville, Arkansas WSIP Funding Options 6/5/2006 Sewer System Rehabilitation Total Funding - Programmed 2007-2008 Less: Staff Recommended Minimum Amount Potentially Available for WSIP Amount Available for WSIP Water & Sewer Fund Mt Sequoyah Improvements Total Funding - Appropriated 2006 Sewer Improvements $ 4,590,000 3,000,000 $ 1,590,000 $ 1,590,000 $ 1,922,350 $ 200,000 City of Fayetteville, Arkansas WSIP Funding Options 6/5/2006 Street Improvements - Crossover Mission to City Limits Total Funding - Programmed 2006-2008 Less: Staff Recommended Minimum Amount Potentially Available for WSIP Amount Available for WSIP Sales Tax Capital Improvements Fund $ 7,500,000 6,500,000 $ 1,000,000 $ 1,000,000 City of Fayetteville, Arkansas WSIP Funding Options 6/5/2006 Community Park Total Funding - Appropriated 2006 $ 2,302,752 Less: Required By Contract 1,623,200 Amount Potentially Available for WSIP $ 679,552 Amount Available for WSIP Sales Tax Capital Improvements Fund Appropriation $ 613,000 City of Fayetteville, Arkansas WSIP Funding Options 6/5/2006 Justice Complex Total Funding - Appropriated 2006 $ 400,000 Although the following are potentially available for WSIP - none are recommended. Additional Funds Identified for the Justice Complex Low Cato Springs Land Sale $ 1,000,000 Wilson Springs Proceeds 2,300,000 Continuing Education Building Sale Proceeds 207,000 Tyson Property (Huntsville @ Happy Hollow) Excess Land 500,000 Total Other Sources Identified for the Justice Complex HWY 265 Land Sale Razorback Road Land Sale $ 4,007,000 High $ 1,000,000 2,300,000 207,000 1,000,000 $ 4,507,000 Not Available for WSIP Not Available for WSIP q <D @ 3 /; A A CD & $ CDCD / / CD CD 0 / G k / & @ § . c c c /o e -o k 0 . > $grt Lj \/ q. to ` # % ( 00 / 0:0 & CD CD o 00 / R 7 *t z / $lI \ e ®z f 7 \ \ - ° « .2 © 2 § k \ 0 0 0` \ k k 7 k 0. 9 k _ o c 11) / C k© o o K fl { o o o / { k o / / k ( & . In .d h- 3 ar Clp O a o O O a N vii a n OW W '0 O m A A N r- o (D CD . 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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 $65,900,000 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 $ Sales and Use Tax Refunding and Capital Improvement Bonds, Series 2005A (the "Series 2005A Bonds"), and (iii) its $ 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 et 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, 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, 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 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: 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 2 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] ............ ............... 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] ......................................... 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. K' 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: 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, curbing, guttering and drainage improvements [and right-of-way acquisition] ................... ........................... ............................................ ......... ❑ 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, 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 improvements [and right-of-way acquisition] ................................................. ..... ................................... ..........❑ 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 improvements [and right-of-way acquisition]................................................................................. ❑ 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 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 5 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 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 6 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. PASSED and APPROVED this 20th day of June, 2006. APPROVED: By: DAN COODY, Mayor ATTEST: By: 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 at a regular meeting of the City Council of the City of Fayetteville, Arkansas, held at 6:00 p.m. on June 20, 2006. DATED: , 2006 SONDRA SMITH, City Clerk // C cs ORDINANCE NO. 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 $65,900,000 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 et 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, 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: II J 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 . ....... ...... ............ ...... ...... ......❑ 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 .....❑ 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........................................................... . ....... ... .... ......... ..❑ 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. 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. PASSED and APPROVED this 20`h day of June, 2006. APPROVED: ATTEST: By: By: DAN COODY, Mayor SONDRA SMITH, City Clerk 0 • From: Clarice Pearman To: Farthing, Marsha Date: 6.26.06 1:11 PM Subject: Ord. 4891 Marsha: Attached is a copy of the above resolution passed by City Council, June 20, 2006 called for a sales & use tax special election. I will forward to Budget & Research the original budget adjustment. I have also attached a copy of the budget adjustment. Thanks. Clarice CC: Audit; Fell, Barbara From: Clarice Pearman To: Smith, Sondra Date: 6.26.06 1:17PM Subject: Ord. 4891 Sondra: Attached is a copy of the Sale & Use Tax Special Election ordinance passed by City Council, June 20, 2006. I'm wondering since this has to do with (sewer)wastewater improvements, is there anything special we need to do concerning this election? Thanks. Clarice CC: Williams, Kit City of Fayetteville, Arkansas Budget Adjustment Form Budget Year Department: Various Capital Projects Date Requested 2006 PoDivision: 6/20/2006 Programm: Adjustment Number Projector Item Added/Increased: Project or Item Deleted/Reduced: $2,500,000 is requested in the WSIP capital project. The use of $2,500,000 from the Use of Fund Balance in the Impact Fee fund is proposed. Justification of this Increase: Funding is needed for the Wastewater Systems Improvements Capital Projects. istification of this Decrease: Sufficient funding remains to comply with City policy. Increase Expense Budget (Decrease Revenue Budget) Account Name Account Number Amount Sewer improvements 4480 9480 5815 00 2,500,000 Transfer to WWT Imp Cap 2300 9300 7602 48 2,500,000 Decrease Expense Budget (Increase Revenue Budget) Account/Project Name Account Number Amount Transfer from Impact Fee Use of fund balance Approval Signatures 4480 0948 6602 30 2300 0930 4999 99 Requested By Date 6 )�o� Budget Mar er Date Type: A Project Number 02133 1 Project Number 2,500,000 2,500,000 Budget Office Use Only B C c Posted to General Ledger E Initial Date Date Posted to Project Accounting Initial Date ate Entered in Category Log Initial Date of os Date City of Fayetteville, Arkansas n ' Budget Adjustment Form Budget Year Department: Various Capital Projects Date Requested 2006 Division: Program: 6/20/2006 Project or Item Added/Increased: $1,816,000 is requested in the WSIP capital project. Justification of this Increase: Funding is needed for the Wastewater Systems Improvements Capital Projects. Adjustment Number 'roject or Item Deleted/Reduced: $1,816,000 from various capital projects. istification of this Decrease: Additional funding mechanisms are being sought to replenish these projects. Increase Expense Budget (Decrease Revenue Budget) Account Name Account Number Amount Project Number Sewer improvements 4480 9480 5815 00 1,813,000 02133 1 Transfer to WWT Imp Cap 5400 5600 7602 48 200,000 Transfer to WWT Imp Cap 4470 9470 7602 48 1,613,000 Decrease Expense Budget (Increase Revenue Budget) Account/Project Name Account Number Amount Project Number Trans from Water & Sewer 4480 0948 6602 40 200,000 Trans from Cap Improv 4480 0948 6602 47 1,613,000 Community Park Development 4470 9470 5806 00 613,000 02002 1 Hwy 265 ROW - Mission to City Limits 4470 9470 5809 00 1,000,000 05009 1 Mt. Sequoyah W&S System Upgrade 5400 5600 5808 00 200,000 01023 1 Approval Signatures Requested By Date Zdget"ge Date Date as Date Budget Office Use Only Type: A B C E Posted to General Ledger Initial Date Posted to Project Accounting Initial Date Entered in Category Log Initial Date City of Fayetteville, Arkansas Budget Adjustment Form Budget Year Department: Various Capital Projects Division: 2006 Program: Project or Item Added/Increased: $1,816,000 is requested in the WSIP capital project. Justification of this Increase: Funding is needed for the Wastewater Systems Improvements Capital Projects. Date Requested I Adjustment Number 6/20/2006 or Item Deleted/Reduced: $1,816,000 from various capital projects. of this Decrease: Additional funding mechanisms are being sought to replenish these projects. Increase Expense Budget (Decrease Revenue Budget) Account Name Account Number Amount Sewer improvements 4480 9480 5815 00 1,813,000 Transfer to WWT Imp Cap 5400 5600 7602 48 200,000 Transfer to WWT Imp Cap 4470 9470 7602 48 1,613,000 Decrease Expense Budget (Increase Revenue Budget) Account/Project Name Account Number Trans from Water & Sewer 4480 0948 6602 40 Trans from Cap Improv 4480 0948 6602 47 Community Park Development 4470 9470 5806 00 Hwy 265 ROW - Mission to City Limits 4470 9470 5809 00 Mt. Sequoyah W&S System Upgrade 5400 5600 5808 00 Approval Signatures Requested By Date 67 dgetM ger c- Date Depa ent Dire for Date r ^, inane & Internal Services Directo 4k' (JSp Project Number 02133 1 Amount Project Number 200,000 1,613,000 613,000 1,000,000 200,000 02002 1 05009 1 01023 1 Budget Office Use Only Type: A B C. E Posted to General Ledger Initial Date Posted to Project Accounting Initial Date Entered in Category Log Initial Date Date City of Fayetteville, Arkansas Budget Adjustment Form Budget Year Department: Various Capital Projects Date Requested Adjustment Number Division: 2006 6/20/2006 Program: Project or Item Added/Increased: Project or Item Deleted/Reduced: $2,500,000 is requested in the WSIP capital project. The use of $2,500,000 from the Use of Fund Balance in the Impact Fee fund is proposed. Justification of this Increase: Funding is needed for the Wastewater Systems Improvements Capital Projects. Account Name Justification of this Decrease: Sufficient funding remains to comply with City policy. Increase Expense Budget (Decrease Revenue Budget) Account Number Amount Sewer improvements 4480 9480 5815 00 2,500,000 Transfer to WWT Imp Cap 2300 9300 76021 48 2,500,000 Decrease Expense Budget (Increase Revenue Budget) Account/Project Name Account Number Amount Transfer from Impact Fee 4480 0948 6602 30 2,500,000 Use of fund balance 2300 0930 4999 99 2,500,000 Project Number 02133 1 Project Number Approval Signatures Budget Office Use Only Type: A B C E Requested By Date ' . Budget Mai er Date Posted to General Ledger Initial Date DepWIntematoSer Date Posted to Project Accounting Initial Date roa�� Entered in Category Log Initial Date Mayor Date NORTHWEST ARKANSAS EDITION • Benton County Daily Record P. O. BOX 1607 FAYETTEVILLE, AR 72702 PHONE: 479-571-6415 AFFIDAVIT OF PUBLICATION I, Elizabeth Wax, do solemnly swear that I am Legal Clerk of the Arkansas Democrat Gazette newspaper. Printed and published in Benton County Arkansas, (Lowell) and that from my own personal knowledge and reference to the files of said publication, the advertisement of: Ordinance 4891 Was inserted in the Regular Editions: June 29, 2006 Publication Charge: $843.15 Subscribed a worn to before me Th�day o ,ZJL 2006. Notary Public G 42ttte Sharlene D. Williams My Commission Expires: Notary Public State of Arkansas My Commission Expires October 18, 2014 RECEIVED JUL 0 3 205 CITY OF FAYETTEVILLE CITY CLERK'S OFFICE ORDINANCE NO. 4891 AN ORDINANCE CALLING AND SETTING A DATE O FOR A SPECIAL ELECTION ONCITY YHOF (1) QUESTIONS TOF O e evl Ie THE ISSUANCE BY THE PIT L IMPROVEMENT ) VET EXCEED OR$25.0000U OF CSE OFAF CING BONDS FOR THE PURPOSE OF FINANCING CER- ARKANSAS LAIN WASTEWATER SYSTEM IMPROVEMENTS, (2) (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 ,000 OF CAPITAL IMPROVEMENT BONDS FOR THE PURPOSE OF FINANCING STREET STREET IMPROVEMENTS; AND (4) NOT TO EXCEED $2,100,000 OF CAPITAL IMPROVE- MENT BONDS FOR THE PURPOSE OF FINANCING CERTAIN TRAIL SYSTEM IMPROVEMENTS; LEVYING A SPECIAL LOCAL SALES AND USE TAX AT THE RATE OF ONER OF ONE PER- CENT (0.25%) AND LEVYING A REPLACEMENT SPECIAL LOCAL SALES AND 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, lvkansas (the °Cry')1,as determietl that there Is a critical need for an additional source of revenue to finance wastewater facilities and street 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 ImpnrvemenURefunding Bonds') pursuant 10 the Local Government Bond Act for the purpose of directly financing at or a portion of the costs of acquisition, construction, reconstruction. extension and equipping of certain improvements to the Citys wastewater treatment plants, sewerage and related facililles (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 Improvement7Relunding . Bonds Is approved, the Wastewater Improvernem)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. I Vote on the question by placing an 'Xin one of the squares following the question, either for or against:" FOR the issuance of Wastewater Improvemenufefundirg Bonds in principal amount not to exceed $17,000,000 for the purpose of financing or refinancing all or a portion at the costs of acquisition, Cop treatment plants, sewerage and related facilities. including right -or -way acquisition .......................0 it improvements within the City; and . FAS, Amendment 62 to the Constitution of the State of Arkansas ('Amendment 62") and Title spier 164, Subchapter 3 of the Arkansas Code of 1987 Annotated (the 'Local Government Cl') authorize the issuance of capital improvement bonds by municipalities, which bonds may ured by the pledge of all of the receipts of the special citywide sales and use tax prescribed Local Government Bond Act; and IEAS, said special citywide sales and use taxes are to be levied and collected only on the first of each single transaction; and EAS, the City'has previously issued and there are presently outstanding (1) its not to exceed 0(X1 .0 Sales and Use Tax Revenue Bad, Series 2006 (the 'Series 2006 Bond'). (ii) its 0,000 Sales and Use Tax Refunding and Capital Improvement Bonds, Series 2005A (the • 2005A Bonds'), and (Iii) its $43.995,000 Sales and Use Tax Capital Inprovement Bonds, 2005B (the Series 2005B Bonds. and together, with the Series 2006 Bond end the Series Bonds: the 'Prim Bonds'): end — ..-,..... . TEAS, the Prior Bends are secured by and payable from the receipts of a three-quarters of one it (0.75%) Special citywide sales and use tax previously levied under the authority of the Local imam Bond Act (the 'Prior Tax'); and IEAS,'ff approved by the electors of the City, the City hat determined to Issue (1) its capital content bonds in principal aim it not to exceed $251000,1)09 for the purpose of financing cer- istewater system fnlproverents. (2) its capital Improvement bonds in principal amount not to for the purpose of d wastewater reve ant bonds in min when all of the Prim Bonds have upon all of the receipts of a three amount not to exceed $65,900,000 lot v) Its capital Improvement bonds in prin ncing certain trail system improvements (a) a pledge of and lien upon ad of the i ndo sales and use tax (the '0.25% Sale en retired trap the receipts of the Prior inner of one percent (0.75%) special ci'. a AGAINST the issuance of Wastewater ImprovemenUURefundIng Sands in principal arrnunt not to exceed $17,000,000 for the purpose of financing or refinancing all or a portion of the costs of acqul- • sitin, conatrudion. reconstruction, extension and equipping of the improvements to the City's waste- water treatment plants, sewerage and related facilities, Including right-ol-way acquisition.............0 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 an' ount not to exceed $65,900,000 (the 'Street Improvement Bends') pursuant to the Local Government Bond Act for the purpose of financing ail a 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 bf 'secured by a pledge of and lien upon (i) all of the receipts of the 025% Sales and Use Tax and (ii) al of the receipts of the 0.75% Sales and Use Tax, each levied pursuant to the Local Government Boric t Act••r:..r• a aas k,.')�. l.a.a it., to i. -i, ♦. u. rink Vote an the question by placing Br,i r In one of the squares following the question, either for a against: n .f a . FOR the issuance of Sheet Improvement Bonds in fncipal amount not to exceed $85.900,000 for the ,ipurpose ot.11nand wideningof of certain City sheets, Which may include related sidewalk, traffic sign' lrovements and control, curbing, guttering and drainage Improvements and right-of-way acgdsiton.......... 3ments, (iii) purpose of AGAINST the Issuance of Street Improvement Bonds in principal amount not to exceed $65,901 amount not for the purpose of financing 311°c a portion of the casts of acquisition. construction. reconstru' actively, the repair, straightening and widening of certain City sheets, which may Include related sldewal k, I is of a ono- signal and control, curbing, guttering and drainage improvements and right-of-way acquisition. 1 rnonT '1 I - I a pledge of e sales and 1 Local Government Bond Act; and EAS, the purpose of this Ordinance Is to call a special election on the Issuance of the Bonds City and for related purposes; THEREFORE, BE IT ORDAINED by the City Council of the City of Fayetteville, Section 1. That under the authority of Amendment 62 and the Local Government Bond Am and sub- ject 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 o1 three-quarters of one percent (0.75%) on the gross receipts Irani the sale at retail within the City of all items and services which are subject to taxation under the Arkansas Gross Receipts Act 01 1941. as amended (Arkansas Code of 1987 Annotated §26-52-101 at seq.), and (Ili) 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 alone percent (0.75%) on the storage, use, distribu- tion a other consumption within the City of tangible personal property or taxable services subject to taxation under the Arkansas Carpensating 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, an the lease or rental price (collectively, the -Safes and Use Tax'). The Sales and Use Tax shall be rnylon and collected mN an the first $2.500 of each'sinale transaction' (as defined in Section 9 here - Sales and Use Tax shall conmence an the levy and collection Cl the 0.75% Sales end Use lax shat) commence on no day tofnwmg me oale of expiration of fhb Prim Tax, and shall cease upon retirement In full of the Bonds. Any collections of the Prim Tax received after Its expiration shall be used. If necessary or appropriate, to provide ter 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 authmay of Amendment 62 and the Local Government Bond Act and sub- ject 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, con- struction, 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, construe - lion, reconstruction. extension and equipping of certain improvements to the Dy's wastewater treat- ment plants, sewerage and related facilities, including right-of-way acquisition. or, alternatively, for the purpose of refunding water and wastewater revenue rands Originally Issued to finance said Improve - rents, (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 financna all a a portion of the costs of acquisition, con - Ilk, traffic signal and control, curbing, guttering and drainage Improvements and rght- tion, and (4) the issuance of the City's capital improvement bonds in the aggregate cot of nor to exceed $2,100,000 far the purpose of financing all or a portion of the costs and construction of certain City trail system Improvements. which may include related trial and drainage improvements and right-of-way acquisition. It the Issuance of any of tined capital improvement bonds (collectively, the 'Bolds') is approved by the electors sh Bonds may thereafter be issued in one or more series from time to time in an aggro - amount not to exceed the respective principal anoint(s) approved by the City's Sec. ved by the electors of the City and Issued, the Bonds shall be secured by a pledge of xl all Of the receipts Cl the Sales and Use Tax, as authorized by the Local Government 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 ques- tions 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: The bands 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 '075% 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 'trim Tax'). The Prim Tax is pledged to the payment of certain existing Indebt- edness -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 an the day following Me date of expiration of the trim Tax. Question One: There is submitted to to 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 por- tion of the costs of acquisition, construction, reconstruction, extension and equipping of certain trnprovemenis to me 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) ail of the receipts of the 0.75% Sales and Use Tax, each levied pursuant to the Local Government Band Act. Vote an the question by placing an 'X" in one 01 the squares following the question, either for or against: FOR the issuance of Wastewater Improvement Bonds In prfncipaf annunt 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 rotated facilities, including right-of-way acquisition.............................__..................................0 I AGAINST the issuance of wastewater Improvement Bonds in principal amount not to exceed reconstruction, for the purpose of financing alt or a portion of the costs of acquisition, construction, eatn reeonstmc9on, extension and equipping --d certain improvements to the City's wastewater treatment plants, sewerage and related facllties, iAEfuding right-of-way ecqukiton..._.............._...._.__`. .0 lei /. R Question Four: There is submitted to the qualified electors of the City of Fayetteville. Arkansas, the question of the issuance o1. 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 improve- ments. 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 end (ii) all of the receipts of the 0.75%Sales and Use Tax, each levied pursuant to the Local Government Bond Act. Yore on the question by placing an X" in one of the squares following the question, either for a against: FOR the Issuance of Trail Improvement Bonds in principal amount not to exceed $2,100,000 for the purpose of financing all a a portion of the costs of acquisition and construction of certain City trail system mitmover ants, which may include related pedestrian signal and drainage Improvements and right-of-way acquisition.........................:._............................_..........................................................0 AGAINST the issuance of Trail Improvement Bonds in principal amount not to exceed $2,100,000 lot Me purpose of financing all or a portion of the costs of acquisition and construction of certaln City trail system improvements, which may Include related pedestrian signal and drainage irrprovemenis and right-of-way acquisition .......................................................................................................................0 Section 5. That the election shall be held and conducted and the vote canvassed and the result: the right to vote at the election. The City Clerk is hereby directed to give notice of the special elec- tion 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 electon. 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 or Arkansas as soon as practical. Section 7. That the results of the special election shall be proclaimed by the Mayor, and his procla- mation shall be published one time in a newspaper of general circulation within the City. The procla- mation 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 heren 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 per- form 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-nalor- ized vehicles a mobile homes, are said to a person by a seller, each individual unit, whether pan of a'feet" 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 dally 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 budding materials and supplies to contractors, builders or other persons, a single transaction, for the purposes of the Sales and Use Tax, shad be deemed to be any single sale which Is reflected on a Slagle Invoice, receipt or statement, on which an aggregate sales (or use) tax figure has been reported and remitted to the Slate of Arkansas; D. When two (2) or more Items of major household appliances, commercial appliances, major equip- ment or machinery are said, each individual unit shall be treated as a single transaction for the pur- poses ofthe Sates 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. In the event that the General Assembly of the State of Arkansas shall define 'single transaction; the General As rimmys definition shall replace the one is 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(0 of the Federal Income Tax Regulations, Section 11. That Kutak Rock L P is hereby engaged as Band Counsel and Stephen Inc. Is hereby engaged as Underwriter with respect to the issuance of to 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 me provisions of this Ordinance are hereby declared to be separable and if any pro- vision shall for any reason be held illegal or invalid, such holding shall riot 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. PASSED end APPROVED this 20th day of June, 2006. APPROVED: ATTEST: By: By: DAN COODY, Mayor SONDRA SMITH, City CIei CERTIFICATE The undersigned, City Clerlf 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 at 6:00 p.m. an June 20, 2006. DATED: . 2006 1 WOI. SONDRA SMITH, City Clark Y' Sondra Smith - RE: Annexation and Sales Tax Elections Page 1j From: Nancy Varvil <NVarvil@co.washington.ar.us> To: Sondra Smith <ssmith@ci.fayetteville.ar.us> Date: 8/15106 1:36PM Subject: RE: Annexation and Sales Tax Elections On July 3, 2006, the Washington County Election Commission received a copy of Fayetteville ordinance) No. 4891 calling for a Sept 12, 2006 election on sales tax and bonds. Nancy Varvil Washington County Election Coordinator 47914-1766 FAX - 479-973-8440 Cell - 479-236-8667 —Original Message — From: Sondra Smith [mailto:ssmith@ci.fayetteville.ar.us] Sent: Tuesday, August 15, 2006 11:14 AM To: Nancy Varvil Subject: RE: Annexation and Sales Tax Elections That would work, just the top sheet would be fine. I will probably ask for you to sign our copy in the future if that is not a problem. We just need something proving we filed this with he Election Commission in case there is a lawsuit. I appreciate your help. I will be over at the County Clerk's office today what time will your office be open and I will stop by and pick it up. Thanks! Sondra Smith City Clerk City of Fayetteville 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 (479) 718-7695 (Fax) ssmith@ci.fayetteville.ar.us >>> Nancy Varvil <NVarvil@co.washington.ar.us> 08/15/06 9:42 AM >>> We haven't done that before, but we could. In this case would it work if I write "received 7/3/06" and sign the front of the ordinance(s) and send them back? Do you need a complete copies or just the top sheets. I try not to generate unnecessary paper. Or would an email acknowledging receipt that you could print out do? Thanks for guidance, Nancy —Original Message — From: Sondra Smith [mailto:ssmith@ci.fayetteville.ar.us] Sent: Monday, August 14, 2006 5:30 PM To: Nancy Varvil Subject: Annexation and Sales Tax Elections NORTHWEST ARKANSAS EDITION Benton County Daily Record P. O. BOX 1607 FAYETTEVILLE, AR 72702 PHONE: 479-571-6415 AFFIDAVIT OF PUBLICATION_ _. __. _ - - _'- . Mew. s -..P . w- - - I, Elizabeth Wax, do solemnly swear that I am Legal Clerk of the Arkansas Democrat Gazette newspaper. Printed and published in Benton County Arkansas, (Lowell) and that from my own personal knowledge and reference to the files of said publication, the advertisement of: NOTICE OF SPECIAL ELECTION Was inserted in the Regular Editions: August 30, 2006 Publication Charge: $306.60 Subscribed and sworn to before me Th'day of2006. Notary Public My Commission Expires: Sharlene D. Williams Notary Public State of Arkansas My Commission Expires October 18, 2014 s RECEIVED SEP 01 200$ CITY CLERKS OFFICE NOTICE OF SPECIAL ELECTION Notice Is hereby given that the City of Feystteville. t: 9� Arkansas will hold a special election on Tuesday, September 12, 2006, at which there will be submit-R�ti TT{y/T1 red to the qualified electors of the City the farrowing e 1 i e questions: The bonds described below that are approved may ARKANSAS I be combined Into a single issue or may be issued in l series from time to time. If the bonds for one or more p of the purposes described below are approved, Mere will be levied (I) a one -quarter ot one percent (0.25%) sales and use tax (Me '0.25%Sales and Use Tax') and (10 a three-quarter of one percnt (0.75%) sales and use tax (the '0.75%Sales and Use Tax'), Me net collections of which remalnFnc and I ubmltted to the qualified electors of the City of Fayetteville, Arkansas, the of capital improvement bonds In principal amount not to exceed $7 Lion of the costs of acquisition, construction, reconstruction, extension and equipping of certain improvements to Me City's wastewater treatment plants, sewerage end 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) an of the receipts of the 0.75% Sales and Use Tax, each levied pursuant to the Local Government Bond Act. r Vote on the question by placing en X' In one of the squares following the question, either for or against: _ — _ . .1 t -- 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 or the costs of acquisition, consauctibn. I reconstruction, extension and equipping of certain improvements to the City's wastewater treatment plants, sewerage and related facllilles. Including right-of-way acquisition.....................................A AGAIRFI the issuance of Wastewater Improvement Bonds in principal emwnt not to exceed $25,000,000 for the purpose of financing all ore portion of the costs of acquisition, construction, feconstmcton, extension and equipping of certain improvements to the City's wastewater treatment I plants, sewerage end related facilities, including right-of-way acquisition.....................................rO • Question Two: - There is submitted to (he qualified electors of the City of Fayetteville, Arkansas, the question of the Issuance of capital improvement bonds In principal annum not to exceed $17,000,000 (the 'Wastewater ImprovementfRefunding Bonds') pursuant to the Local Government Bond Act for the age and related facilities (the 'Project) or, alternatively, for the purpose of refunding the CIty5 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 ImprovernenuRefunding Bonds shall be secured by a pledge of and lien upon (I) all of the receipts of the 0.25% Sales and Use Tax end (ii) all of the receipts of the 0.75% Sales end Use Tax, each levied pursuant to the Local Government Bond Act. P Vote on the question by piecing an X in one of the squares following the question, either for or against: FOR Me Issuance of Wastewater ImprovemenURefunding 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 Cbys waste- urpose or financing or refinancing all aw lctnn, extension and equipping of cell sewerage and related facilities. Includii Question Three: 1 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'Strem Improvement Bonds') pursuant to the Local Government Bond Act for the purpose of financing' all ore portion of the costs of acquisition, construction and equipping of certain street improvements. lithe issuance of the Street Improvement Bonds Is approved. the Street Improvement Bonds s(tatl be secured by a pledge of end lien upon (i) all of the receipts of the 0.25% Sales end Use Tax and (ii) all of the receipts of the 0.75%Sales and Use Tax, each levied pursuant to the Local Goverrxnenl Bond Act. - i Vote on the question by placing en X In one of the squares following the question, either for t:or agains..- - - FOR the Issuance fn of Street p mlent Bonds cIn les principal qacquisition, sitior not to exceed $65,onstru don, the purpose to ing ill or a oion of Cithey soak of itiy include ludetrectiod, race alts, tr an, signal and control, and widening of certain d aina ore Improvements which is a Intrude ay sidewalk, D signal and control, curbing, of rieet and improvement I ds nnts andright-of-wayamount acquisition Q AGAINS0 the Issuance ura Street ing or a Bonds in principal os amuunt not to exceed reconstruction, for the r. purpose of linanan aofportioncantof the wets o, acquisition.clud related sidewalk, traffic rein and straightening dontr1, and widening certain airy streets, which may include related ac ewati . .......signal entl . ..a, curbing, guttering and tlralnege.mprovement..antl .......of -way aon Question Four I There is submitted to the qualified electors of Me 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 Me Issuance of the Trail Inpro ement Bonds is approved, the Iran Improvement Bonds shall be secured by a pledge of end lien upon (I) all of the receipts of Me 0.25% Sales end Use Tax and (ii) all of the receipts of the 0.75%Sales and Use Tax, each levied puisualn to Me Local Government Bond Act. 1 I Vote on the question by placing an 'X In one of the squares following the question, either for or against: FOR the issuance of Iran I mportion fBendsin 01acqui amount not nsexceed ocertain for purpose of rove financing all or a portion of the costs ef acgaion si al and drainage of City atail nd system improvements, i...ch may include related pedeefr.en.....nor. e.a drainage improvements and right-of-way ahe isssuanc.......Tr...l.............rnentBonds.in.....i.l.anoun...o..to.exc.ed. .....100.!.Q AGAINST the Issuance of Trail Improvement Bonds in principal amount not to exceed $2,100,000 Sandra Sn di City CkrWfreasurer August 30, 2006 RECEIVED SE? 01 2ORS CITY CLERKS OFFiCE WASHINGTON COUNTY ELECTION COMMISSION County Courthouse, Suite 140 280 North College Ave. Fayetteville, AR 72701 September 27, 2006 Sondra Smith City Clerk City of Fayetteville 113 W. Mountain St. Fayetteville, AR 72701 Dear Ms. Smith: The Washington County Election Commission is authorized to request reimbursement for the expenses of special elections based as outlined in Arkansas Election Law 7-5-104. Following is the cost to the Election Commission for the September 12, 2006 special election for the City of Fayetteville. Ballot Stock and printing $ 2,861.00 Programming and audio $ 2,527.00 Advertisements $ 858.00 Pollworkers and supervisor mileage 9,773.00 Election night workers $ 450.00 Pre -election supplies $ 123.00 Truck rental $ 205.00 Staff and staff mileage $ 2,510.00 Election Commission meetings $ 450.00 Total $ 19,757.00 Please send a check for the above amount to the Election Commission at the above address. Thank you. Sincerely, Nancy varfl Election Coordinator Telephone: 479 444-1766 FAX: 479 973-8440 RECEIVED %%P 27 2006 CITY OF FAYETTEVILLE CITY CLERKS OFFICE PUBLIC NOTICE CITY OF FAYETTEVILLE, ARKANSAS PROCLAMATION DECLARING THE RESULTS OF ELECTION OFFICE OF THE MAYOR OF THE CITY OF FAYETTEVILLE, ARKANSAS TO THE PEOPLE OF THE CITY OF FAYETTEVILLE, ARKANSAS, GREETINGS: WHEREAS, a Special Election was held on September 12, 2006, regarding the issuance of Capital Improvement Bonds (Wastewater Improvement Bonds) for the purpose of financing certain Wastewater System Improvements, the issuance of Capital Improvement Bonds (Wastewater Improvement/Refunding Bonds) for the purpose of financing or refinancing certain Wastewater System Improvements, Capital Improvement Bonds (Street Improvement Bonds) for the purpose of financing certain Street Improvements and the issuance of Capital Improvement Bonds (Trail Improvement Bonds) for the purpose of financing certain Trail System Improvements as set forth in Ordinance Number 4891. NOW, THEREFORE, I, Dan Coody, Mayor of the City of Fayetteville, by virtue of the authority vested in me by law, do hereby proclaim the following to be the results of the September 12, 2006 Special Election: QUESTION ONE: 4,442 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. 1,384 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. QUESTION TWO: 4,433 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. 1,437 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-way acquisition. QUESTION THREE: 4,274 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. 1,536 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: 3,532 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. 2,271 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-way acquisition. NOW, THEREFORE, I, Dan Coody, Mayor of the City of Fayetteville, do hereby notify all persons that the results of the election regarding Capital Improvement Bonds to be used for certain Wastewater Improvements, certain Street Improvements and certain Trail System Improvements shall be conclusive unless attacked in the courts within thirty (30) days. IN WITNESS WHEREOF, I have hereunto set my hand and caused the seal of my office to be affixed this 27th day of September, 2006. DAN COODY, Mayor Attested by: SONDRA SMITH, City Clerk/Treasurer CERTIFICATE OF WASHINGTON COUNTY BOARD OF ELECTION COMMISSIONERS ASCERTAINING AND DECLARING RESULTS OF SPECIAL ELECTION We, the undersigned members of the Board of Election Commissioners of Wasington County, Arkansas, hereby certify that: rn Returns of the votes of the City of Fayetteville special election held Sept_emtier 12'200j� have been delivered to us by the Washington County Clerk. The returns sl =tfie nurser of -1 votes for each ballot question. - ;-`-) We ascertain and declare the results of the election to be: -'- .: Lb On 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. FOR: 4,442 votes AGAINST: 1,384 votes On 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. FOR: 4,433 votes AGAINST: 1..437 votes On 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. FOR: 4,274 votes AGAINST: 1,536 votes 4830-5406-8225.1 RECEIVED SEP 272006 CITY OF FAYETTEVILLE CITY CLERK'S OFFICF On the question of the issuance of capital improvement bonds in principal amount not to exceed $2,1 00,000 (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. FOR: 3,532 votes AGAINST: 2,271 votes WITNESS our hands this 2?thlay of 4830-54068715.1 Commissioner I 11 Northwest Arkansas Times Benton County Daily Record P. O. BOX 1607 FAYETTEVILLE, AR 72702 PHONE: 479-571-6415 AFFIDAVIT OF PUBLICATION I; Karen-Caler, do solemnly swear that I am Legal Clerk of the Arkansas Democrat Gazette newspaper. Printed and published in Benton County Arkansas, (Lowell) and that from my own personal knowledge and reference to the files of said publication, the advertisement of: PUBLIC NOTICE Was inserted in the Regular Editions: SEPTEMBER 29, 2006 Publication Charge: $229.95 Subscribed and sworn to before me This day of � 2006. Notary Public Sharlene D. Williams • Notary Public My Commission Expires: State of Arkansas My Commission Expires October 18, 2014 e RECEIVED OCT 032006 CITY OF FAYETTEVILLE CITY CLERK'S OFFICE