HomeMy WebLinkAbout2013-05-13 - Agendas - Final • A & P Commissioners will circulate among funding requestors from noon until 1 p.m. at
the Visitors Bureau, 21 S. Block. At 1 o'clock, Commissioners will convene as a
Committee of the Whole to decide on funding. Lunch will be served.
AGENDA
ADVERTISING AND PROMOTION COMMISSION
May 13, 2013 approx.2:00 p.m. Fayetteville Town Center
I. Call to Order — Ching Mong
II. Welcome New Commissioners — Hannah Withers and Bobby Ferrell
III. Special Project Funding Distribution
IV. Old Business
A.Attomey contract — John Burrow
V. New Business
A.Audit — Roxie Benicosa, Beall Barclay
B.Resolution for issuance of bonds guaranteed by HMR revenue
VI. Advertising Agency Report — Mike Sells
• VII. Reports
A. Approval of Minutes for March
B. Financial Report
1 . HMR Revenues — Marilyn Heifner
2. Financial Statements — Jerri Kuburich
3 . Update from City Attorney re: delinquent tax collection efforts — Kit
Williams
C. Departmental Reports
These are included in the packet, but will not be orally presented.
VIII. Adjourn
•
. ADVERTISING AND PROMOTION COMMISSION
REGULAR MEETING
April 8, 2013
Commissioners Present: Matt Behrend, Bill Lyle, Ching Mong, Matthew Petty, Maudie
Schmitt and Justin Tennant.
Commissioner Absent: Bob Davis
Staff Present: Marilyn Heifner, Sandra Bennett, Matt Clement
CALL TO ORDER
Ching Mong called the regular monthly meeting of the Fayetteville Advertising and
Promotion Commission to order on April 8, 2013, at 2:00 p.m.
REVIEW OF APPLICANTS FOR AT LARGE AND INDUSTRY POSITION EXPIRING 3/31/13
Seven nominations were received for the Industry position: Maudie Schmitt (Cafe Rue
Orleans), Michael Andrews (Fresco Cafe & Pub), Serena Hattabaugh (Candlewood Suites),
Jim Huson (Doe's Eat Place), Shellie Morrison (The Event Group), Hannah Withers (Little
Bread Co.), and Denise Youngblood (Mojo's Pies).
The City Nominating Committee interviewed Serena Munns, Hannah Withers, Shellie
Morrison, and Maudie Schmitt. The Nominating Committee recommended Hannah
• Withers. Petty moved to appoint Hannah Withers, second by Tennant.
Petty said that Hannah represents a unique perspective. She started the Block Street
Party which now has attendance of 15,000 and has recently purchased Maxine's Tap
Room. She would encourage a sense of place.
Mong said Hannah is a strong candidate. Tennant said it was tough from the nominating
committee standpoint because Maudie Schmitt has served the commission so well. He
liked the new ideas and fresh approach of Hannah to downtown and to Fayetteville as a
whole.
Schmitt said she had enjoyed the last 8 years serving on the Commission and she thought
under her chairmanship, the Commission had accomplished some good things such as
Botanical Garden of the Ozarks, the Square renovation, and many small festivals started by
the A & P funding. She said she had been a good steward of the HMR money and had a
perspective of experience and a level headed opinion.
Lyle nominated Maudie Schmitt. He expressed a concern for Hannah and her negativity
expressed on Facebook after she was nominated last time. Second by Mong.
Hannah was selected in voting with Tennant, Behrend, and Petty voting for Withers and
Lyle and Mong voting for Schmitt.
•
• Ten nominations were received for the At Large position: Roger Barrett (Nightbird Books),
Terry Coberly (retired), Bobby Ferrell (retired), Julie McQuade Heyes (Fayetteville
Underground), Eric Howerton (WhyteSpyder, Inc), Lewis B "Bucky" Jones (retired), Steven
Kay (attorney), David Russell (First Security Bank), Terri Trotter (Walton Arts Center), and
William H. (Bill) Waite (Dickson Street Liquor).
Petty asked to eliminate Waite and Trotter because of pending business between the
Walton Arts Center and the Commission. Waite is a board member of the WAC and Trotter
is an employee.
Tennant said the city nominating committee recommended Ferrell. Tennant moved to
appoint Ferrell, second by Petty.
Mong moved to recommend David Russell, second by Lyle.
After discussion, Ferrell was elected with Tennant, Behrend, and Petty voting for Ferrell and
Mong and Lyle voting for Russell.
Petty recommended that the Commission interview all candidates in the future.
REPORTS
MINUTES
Motion to approve the minutes of the March meeting by Petty, second by Tennant. Motion
• carried.
FINANCIAL REPORTS
HMR Revenue - Marilyn reported that March revenue was $213,526, a 6.22%
increase over March, 2012. Year to date increase is 4.61%, $612,226.
Jerri Kuburich reviewed the Financial Reports for February, 2013. Petty asked for a
report of cash unencumbered at each monthly meeting.
Delinquent Tax Collection Efforts - City Attorney Kit Williams reported that the City
Prosecutor collected $7,261.39 in March. No reports decreased from 10 to 4. Four cases
were closed and there are now 5 with zero balances. The prosecutor will try and use the
business license as a tool for getting reports submitted.
Lyle asked about business owners being able to open new restaurants when taxes are
owed on previously owned restaurants. The City attorney will check into that issue.
DEPARTMENTAL REPORTS
Clinton House Museum - Website traffic continues to grow with just under 6,000 visitors
(89% of those were new visitors to the site).
Iron gating on the west side and handrails on the rock stairway to the garden were
• installed. Johnson attended the Arkansas Museums annual conference in Bentonville.
• Convention and Visitors Bureau - Hospitality Hero program had 26 entries for the month.
It is still well received by the managers and first line employees. Mandy Carrillo from the
Quality Inn was the winner this month.
Staff booked 11 meetings with total economic impact of $1,509,044. A sales blitz in Little
Rock is being organized for April.
Store sales continue declining revenue pace. Store items and sale items are being
discussed as a method of regaining sales.
Town Center
Sandra Bennett reported a 21% increase in sales for March 13 over March 12. Year to
date collections are 9% higher that 2012 at $104,212.40.
Bennett attended leadership conference this month.
Executive Director
Tanner Montgomery, visitor services manager, resigned. A search is on for his
replacement.
We have finished updating the Fayetteville Insider's Guide. It is now at the printers. A
pocket trail z-card design work has been started. We will have a page featuring
Fayetteville in a coffee table guide called Arkansas.
• The Northwest Arkansas area will be featured in the July issue of U. S. Airways in-flight
magazine. It has a printing of 315,000 with each issue being read 6-10 times.
The experiencefayetteville.com website is being updated. We anticipate it going live within
the month.
Wayfinding and signage project has been bid and the signs should be installed in July as
part of phase 1 of the project.
The server for the CVB crashed last week. A new server is up and running and no
information was lost.
Auditors completed their in-house portion of the audit. We had a problem with the
materials that Keith Glass submitted and he refused to provide a final financial statement
and write the management letter. Jerri recreated the documents and made adjustments
to have the report reflect the actuals (with auditor approval). The preliminary report should
be back to Heifner by the end of this week.
A sales blitz is scheduled in Little Rock on April 16-17.
All directors are required to file a statement of financial interest because of state
• legislation passed in this session.
• AD AGENCY REPORT
Mike Sells said the Insider Guide will have several new sections which are designed to help
visitors and residents as well. It is scheduled for delivery for the end of the month.
OLD BUSINESS
ATTORNEY FOR THE A & P COMMISSION
RFQ's were received from the Asa Hutchinson Law Group and from John Logan Burrow.
After interviewing both firms, it was moved by Petty, second by Schmitt to go into Executive
Session to discuss hiring because it was deemed a personnel issue. Motion carried.
After the Executive Session, Mong called the meeting back to order, moved by Petty to
enter into negotiations with John Burrow, second by Mong. Motion carried.
NEW BUSINESS
DMAP
DMAP materials will be submitted at the end of April. If Commissioners have questions
regarding any sections, they should contact Matt Clement.
MOBILE TOURIST INFORMATION CENTER
Commissioners gave Marilyn authority to investigate a mobile tourist information center.
There being no further business, the meeting was adjourned.
• Respectfully submitted,
Marilyn Heifner
Executive Director
Fayetteville A & P Commission
•
Date of Event Funding Request Attendance Amt of Request 2012 received Exec. Dir. Recom Commission Alp
6/24/2013 Texas League Gala 300 $ 20000.00 $ $ 2,000.00
10/5/2013 Battle of the Beers 500 $ 15,000.00 $ - $ 31000.00
10/5/2013 Puppets in the Park 400 $ 71000.00 $ 1,000.00 $ 20500.00
11/1/2013 Theatre5quared 350 $ 15,000.00 $ 20,000.00 no recom.
12/31/2013 Last Night Fayetteville 1400 $ 220000.00 $ 7,000.00 $ 7,000.00
Aug 22-25 Fayetteville Roots Festival 3500 $ 40,000.00 $ 20,000.00 $ 20,000.00
Dec 14 & 15 Fayetteville Half Marathon 2250 . $ 20,000.00 $ 4,000.00 $ 4,000.00
Dec 7-Jan 5 Merry Little Christmas at Mt. Sequoyah ? $ 20,000.00 $ - no recom.
Dec 7-Jan 5 Little Craft Show 3400 $ 31700.00 $ 1,500.00 $ 3,700.00
Dec. 7 Bulldog Classic 18000 $ 12,500.00 $ - $ 12,500.00
May 30-June 2 NCAA Baseball Regional & Superregional 38000 $ 10,000.00 $ 10,000.00 $ 10,000.00
Nov. 23-Dec 31 Lights of the Ozarks 300000 $ 25,000.00 $ 15,000.00 $ 25,000.00
Oct 25-27 Regional Flag Football tournament 400 $ 6,000.00 $ 1,000.00 $ 1,000.00
Sept 18-21 Bikes, Blues and BBQ 400000 $ 23,661.00 $ $ 20,000.00
SoNA 8242 $ 25,000.00 $ $ 25,000.00
Arkansas Entertainers Walk of Fame ? $ 15,000.00 $ no recom.
$ 261,861.00 $ 135,700.00
Available for special project funding - $188,462
• EMPLOYMENT AGREEMENT
THIS AGREEMENT entered into this day and by and between the City of
Fayetteville, Arkansas, Advertising and Promotion Commission (COMMISSION) and
John Logan Burrow, Attorney at Law (ATTORNEY):
For and in consideration of the faithful performance of the mutual promises,
covenants, and conditions set forth herein the parties agree as follows:
1 . EMPLOYMENT. COMMISSION agrees to employ and ATTORNEY
agrees to accept employment as attorney for the COMMISSION.
2. TERM. The term of this Agreement shall be "at will' and either party
may declare the same to be void at any time, for any reason, or for no reason at all.
PROVIDED HOWEVER, unless terminated for cause, either pa rty shall
• be provided sixty (60) days written notice of such termination.
For purposes of this Agreement "cause" as applied to termination of the
agreement by the COMMISSION shall be "cause" as the term is ordinarily applied in
Unemployment Security Division cases as well as default by the ATTORNEY under this
AGREEMENT. "Cause" as applied to termination of the Agreement by the ATTORNEY
I
shall include disability substantially interfering with his performance, refusal to engage in
unethical practices, refusal to engage in matters outside his competency, and refusal to
engage in matters that subject the ATTORNEY to risk of personal liability as well as
default by the COMMISSION under this AGREEMENT.
PROVIDED HOWEVER, even in the event of termination of the ATTORNEY
for cause, the ATTORNEY shall cooperate and provide reasonable efforts to effect
• transition of all matters to any other attorney the COMMISSION shall designate.
• 3. SCOPE OF WORK. The ATTORNEY shall be reasonably available to
handle all routine legal matters of the COMMISSION including, but not limited to:
contract formation, interpretation, and enforcement; court cases wherein the
COMMISSION is a party; general consultation; and substantial attendance at monthly
meetings of the COMMISSION and any special meetings wherein his presence is
requested.
PROVIDED HOWEVER, it is mutually agreed and acknowledged that
ATTORNEY is also a private practitioner and that he is precluded from participating in
matters that constitute a conflict of interest; certain insured matters are defended by
attorneys chosen by the carrier; certain matters, including, but not limited to, bonds, are
beyond his area of competence; certain matters reasonably require the efforts of more
• than one attorney; and other matters may arise whereby it is in the best interests of the
parties that the ATTORNEY not represent the COMMISSION or that the ATTORNEY
receive assistance from additional counsel. In such event, the COMMISSION will be
responsible for the compensation of new or additional counsel.
4. COMPENSATION. The COMMISSION shall pay the attorney at the
rate of $200.00 per hour, with the expectation that monthly billings shall not exceed
$ 1 ,000.00, or 5 hours of work. The ATTORNEY shall give notice to the COMMISSION
whenever billable hours are expected to exceed 5 hours. The ATTORNEY shall be
responsible for providing an itemized statement for services and the COMMISSION shall
remit payment within thirty days of receipt. The COMMISSION, through its Executive
Director, or at its regular monthly meeting, may authorize payment for additional billable
• hours.
• 5. COSTS. The COMMISSION shall be responsible for all costs
directly associated with the ATTORNEY'S representation of the COMMISSION
including, but not limited to, court costs, trial preparation to include discovery and
exhibits, travel expenses, expert witness fees, investigation costs, and other costs
uniquely associated with ATTORNEY'S representation of the COMMISSION. Said
costs shall not include costs associated with ATTORNEY'S use of his own office
premises, or automobile costs not associated with long distance travel associated with
legal services for the COMMISSION. PROVIDED HOWEVER, the ATTORNEY shall
not incur any single cost in excess of $250.00 without the prior approval of the
COMMISSION.
IN WITNESS WHEREOF, the parties set their hands and seals this _ day of
• May, 2013 .
John Logan Burrow Authorized Representative
Attorney at Law City of Fayetteville, Arkansas
Advertising and Promotion Commission
•
FAYETTEVILLE ADVERTISING
AND PROMOTION COMMISSION
FINANCIAL STATEMENTS
DECEMBER 31 , 2012
FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION
DECEMBER 31 , 2012
CONTENTS
Page
INDEPENDENT AUDITORS' REPORT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . .. . . 1
FINANCIAL STATEMENTS
Statement of Assets, Liabilities, and Fund Balance — Modified Accrual Basis.. . .. . . .. ... . .. ... .... . .. .. . 3
• Statement of Revenues, Expenditures, and Changes in Fund Balance —
ModifiedAccrual Basis ... . . . . . . . . . .. . .. . .. . . . .. . . .. ... .. . . . . . . .. .. . .. . . . . .. ... .. .. . . . . . . .. .. . . . . ... . . . . . . . .. . .. . . . . .. .. . .. . . . . 4
Statement of Revenues and Expenditures — Modified Accrual Basis —
Budgetto Actual . . . .. . . . . .. . .. ... . .. . . . . .. . .. . . . .. . . . . . . . . .. .. . .. . .. . . . . . . . . . . . . . . .. .. . . . .. . . . . . . .. . .. . . .. .. . . . .... ... ... .. .. . .. . . . 6
Notes to Financial Statements . .. . .. . . .. .. . . .. . . . . . . .. . . .. .. . .. . .. ... . . . . . ... .. ... . . . .. .. . . . . . . .. . . . . . .. .. . . . .. . . . .. ... . . ... .. . . . . 7
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND
OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS .. .. . . .. . . .. . . . . . . . .. . . . . . . .. . .. .. . .. .. . . . . . . .. . . .. .. ... .. ... . . ... .. . .... . .. .. 15
•
BEALU BARCLAY
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
Board of Commissioners
Fayetteville Advertising and Promotion Commission
Fayetteville, Arkansas
Report on the Financial Statements
We have audited the accompanying financial statements of the Fayetteville Advertising and
Promotion Commission (the "A&PC") as of and for the year ended December 31 , 2012, and
the related notes to the financial statements which collectively comprise A&PC's basic financial
statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
• statements in accordance with financial reporting provisions prescribed or permitted by the
State of Arkansas (the "State') to demonstrate compliance with the State's regulatory basis of
accounting and budget laws. Management is also responsible for the design, implementation ,
and maintenance of internal control relevant to the preparation and fair presentation of
financial statements that are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The .procedures selected depend on the auditors'
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditors
consider internal control relevant to the entity's preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity's internal control.
• Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
• Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles
As described in Note 1 of the financial statements, the financial statements are prepared by
the A&PC on the basis of the financial reporting provisions prescribed or permitted by the State
to demonstrate compliance with the State's regulatory basis of accounting and budget laws,
which is a basis of accounting other than accounting principles generally accepted in the
United States of America, to meet the requirements of the State.
The effects on the financial statements of the variances between the regulatory basis of
accounting described in Note 1 and accounting principles generally accepted in the United
States of America , although not reasonably determinable, are presumed to be material.
Adverse Opinion on U.S. Generally Accepted Accounting Principles
In our opinion, because of the significance of the matter discussed in the Basis for Adverse
Opinion on U. S. Generally Accepted Accounting Principles paragraph, the financial statements
referred to above do not present fairly, in accordance with accounting principles generally
accepted in the United States of America, the financial position of the A&PC as of December
31 , 2012, or changes in financial position thereof for the year then ended.
Opinion on Regulatory Basis of Accounting
. In our opinion, the financial statements referred to above present fairly, in all material respects,
the assets, liabilities, and fund balance of the A&PC as of December 31 , 2012, and its
respective revenues, expenditures, and the changes in fund balance and budgetary results for
the year then ended, in accordance with the financial reporting provisions prescribed or
permitted by the State described in Note 1 .
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have issued our report dated May 1 ,
2013 on our consideration of A&PC's internal control over financial reporting and our tests of
its compliance with certain provisions of laws, regulations, contracts and grant agreements,
and other matters. The purpose of that report is to describe the scope of our testing of internal
control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on the internal control over financial reporting or on compliance. That report
is an integral part of an audit performed in accordance with Government Auditing Standards in
considering the entity's internal control over financial reporting and compliance.
i
B LL BARCLA4& MP
ANY, PLC
Certified Public Accountants
• Rogers, Arkansas
May 1 , 2013
FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION
STATEMENT OF ASSETS, LIABILITIES, AND FUND BALANCE -
MODIFIED ACCRUAL BASIS
• DECEMBER 31 , 2012
ASSETS
CURRENT ASSETS
Cash $ 11177,311
Due from City of Fayetteville 11188
Investments 1 ,811 , 938
Prepaid expenses 31505
Total Current Assets $ 2,993,942
PROPERTY
Building 113691316
Furniture and fixtures 34,550
Land 1980621
Office equipment 98,996
1 ,701 ,483
Less accumulated depreciation 389,770
• 1 ,311 ,713
OTHER ASSETS
Deposits 11905
Total Assets $ 4,307,560
LIABILITIES AND FUND BALANCE
CURRENT LIABILITIES
Accounts payable $ 22,638
Payroll taxes and benefits withheld and payable 9,038
Due to City of Fayetteville 3,287
Total Current Liabilities $ 34, 963
FUND BALANCE 412729597
Total Liabilities and Fund Balance $ 4,307,560
•
See Independent Auditors' Report and Notes to Financial Statements.
- 3 -
FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION
STATEMENT OF REVENUES, EXPENDITURES, AND
• CHANGES IN FUND BALANCE - MODIFIED ACCRUAL BASIS
YEAR ENDED DECEMBER 31 , 2012
REVENUES
Hotels, motels and restaurant tax $ 2,521 , 143
Rent income 416,495
Visitors center store 63,817
Visitors guide advertising income 36,650
Parking income 50,484
Special event income 59466
Investment income 9,970
Interest income 5,364
Miscellaneous income 52,975
$ 311621364
EXPENDITURES
Advertising 573,286
Automobile expense 3,600
Bank charges 71252
Bond payments 673,892
Contract labor 65,990
Convention development 86,291
• Collection expense 50,423
Depreciation 49,542
Dues and subscriptions 5,563
Employee benefits 12, 121
Insurance 60,715
Repairs and maintenance 169,880
Miscellaneous 23,302
Office supplies/expense 17,420
Payroll taxes 40,882
Postage 18, 107
Printing 820
Professional services 15,458
Rent 12,000
Salaries and wages 456,214
Security 5,072
Special projects 365,844
Supplies 30,420
Taxes and licenses 41008
Training and meetings 461405
Utilities 991127
Visitor store expense 43,268
• 219369902
See Independent Auditors' Report and Notes to Financial Statements.
- 4 .
EXCESS OF REVENUES OVER
EXPENDITURES 225,462
FUND BALANCE, BEGINNING OF YEAR 41047, 135
FUND BALANCE, END OF YEAR $ 4,272,597
•
•
See Independent Auditors' Report and Notes to Financial Statements.
- 5 -
FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION
STATEMENT OF REVENUES AND EXPENDITURES - MODIFIED ACCRUAL BASIS
BUDGET TO ACTUAL
• YEAR ENDED DECEMBER 31 , 2012
Variance
Original Favorable
Budget Final Budget Actual (Unfavorable)
REVENUES
Hotels, motels and restaurant tax $ 21282,246 $ 21389,035 $ 215219143 $ 132,108
Rent income 445,957 445,957 4169495 (29,462)
Visitors center store 65,000 65,000 63,817 (19183)
Visitors guide advertising income 15,000 38,600 36,650 (19950)
Parking income 15, 152 15, 152 50,484 359332
Special event income 32,500 293500 51466 (240034)
Investment income 15,106 15,106 91970 5,136
Interest income 21125 2,125 51364 (3,239)
Miscellaneous income 16,628 119628 52,975 410347
21889,714 31012,103 31162,364 154,055
EXPENDITURES
Advertising 575,200 575,200 573,286 11914
Automobile expense 3,600 .3,600 3,600 -
Bank charges 7,009 71009 7,252 (243)
Bond payments 679,922 679,922 673,892 61030
Contract labor 19,899 19,900 65,990 (46,090)
Convention development 89, 183 74,283 86,291 (12,008)
• Collection expense 45,646 47,780 50,423 (2,643)
Depreciation 20,000 20,000 49,542 (29,542)
Dues and subscriptions 12,245 12,245 51563 6,682
Employee benefits 15,383 14,356 12,121 21235
Insurance 80,763 79,028 60,715 18,313
Repairs and maintenance 234,746 229,745 1699880 59,865
Miscellaneous 17, 172 1590197 239302 135,895
Office supplies/expense 35,693 350693 17,420 18,273
Payroll taxes 47,272 48,091 40,882 71209
Postage 20, 150 20,150 189107 21043
Printing - 820 (820)
Professional services 11 ,500 11 ,500 15,458 (39958)
Rent 12,000 12,000 12,000
Salaries and wages 5129739 521 ,831 456,214 659617
Security 6,275 61275 5,072 1 ,203
Special projects 218,328 216,828 365,844 (149,016)
Supplies 34,396 34,396 30,420 31976
Taxes and licenses 61400 6,400 41008 21392
Training and meetings 42,945 35,426 46,405 (10,979)
Utilities 112,248 112,248 99,127 139121
Visitor store expense 30,000 300000 43,268 (13,268)
21890,714 3,013,103 21936,902 76,201
EXCESS (DEFICIT) OF
REVENUES OVER
EXPENDITURES $ (1 ,000) $ (1 ,000) $ 225,462 $ 2309256
See Independent Auditors' Report and Notes to Financial Statements.
- 6 -
FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31 , 2012
• NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
As discussed further below, these financial statements are presented in accordance with the
regulatory basis of presentation as prescribed by Arkansas state law. The Fayetteville
Advertising and Promotion Commission (the "A&PC") maintains it records on a modified
accrual basis of accounting, as discussed below. The regulatory basis of presentation and
the modified accrual basis of accounting differ from accounting principles generally accepted
in the United States of America. The significant accounting policies of the A&PC are as
follows:
Regulatory Accounting
The Arkansas Legislature enacted a law in 2005 that requires municipalities to present
their financial statements in a prescribed format and also restricts the basis of accounting
for this format to one of three methods. The entity's governing body, however, can adopt a
resolution annually to adopt GASB Statement No. 34, Basic Financial Statements - and
Management's Discussion and Analysis - for State and Local Governments (GASB No.
34) as their reporting model in lieu of reporting on this regulatory basis established by
Arkansas Code 10-4-412. The Board of Commissioners did not adopt such a resolution
for 2012.
The regulatory presentation is on a fund basis with no distinction being made as to the
type of funds (Proprietary, Governmental, etc.) being presented . The required financial
statements consist of a balance sheet (or statement of assets, liabilities, and fund
• balance), statement of revenues, expenditures, and changes in fund balance, and
statement of revenues and expenditures - budget to actual. The basis of accounting is
limited to cash basis, modified cash basis or modified accrual basis. The A&PC has
elected to utilize the modified accrual basis of accounting.
Reporting Entity
The A&PC is a component unit of the City of Fayetteville, Arkansas (the `City'), established
by Ordinance Number 2310 of the City for the purpose of promoting and advertising the City
and its environs. The A&PC is presented in the City of Fayetteville's Comprehensive Annual
Financial Report as a discretely presented component unit. A commission consisting of
seven members governs the A&PC. Four members are owners or managers of hotels,
motels or restaurants, and serve for staggered terms of four years. Two members must be
members of the governing body of the City, are selected by the council and serve at the will
of the council. One member is from the public at large and is nominated by the Commission
and approved by the council. All members must reside in the city. Members are voted on by
the existing Commissioners and approved by the City Council. The financial statements
present only the A&PC, and are not intended to present the financial position and results of
operations of the City of Fayetteville, Arkansas, in conformity with accounting principles
generally accepted in the United States of America. Operations of the A&PC include the
Fayetteville Convention and Visitors Bureau , the Fayetteville Town Center and the Clinton
House Museum.
FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31 , 2012
• NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Use of Estimates 1 .
Management used estimates and assumptions in preparing these financial statements.
Those estimates and assumptions affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenditures during the reporting period. Actual results
could differ from those estimates.
Basis of Accounting
The financial statements are prepared on the modified accrual basis of accounting. As such,
revenues are recognized when the underlying exchange takes place and in the accounting
period in which the revenue is both measurable and available to finance expenditures of the
fiscal period. The A&PC considers all tax revenues measurable and available when collected
and exchange revenue when the transaction occurs. Expenditures are recorded when the
related liability is incurred.
Budgets
The A&PC adheres to the following procedures in establishing the budgets reflected in the
accompanying financial statements:
Prior to December 1 , the budget committee proposes an operating budget for the fiscal
• year commencing the following January 1 . The operating budget includes proposed
expenditures and the means of financing them.
Prior to January 1 , the A&PC legally enacts the budget through approval of the
commissioners. I
Budgets are adopted on a basis consistent with accounting practices prescribed or
permitted by the State of Arkansas, which practices differ from accounting principles
generally accepted in the United States of America.
Budgeted revenues and expenditures represent the formal operating budget adopted by the
A&PC. Budgetary control is maintained at the operations level. Budgeted amounts not spent
by year end lapse.
Income Taxes
The A&PC is a tax-exempt organization under Section 115 of the Internal Revenue Code.
Property
Property is carried at historical cost or fair market value at date of donation if the asset was
contributed. The A&PC's capitalization policy states that assets with an initial value or cost
greater than or equal to $5,000 and an estimated useful fife of greater than one year will be
capitalized. Depreciation is provided on the straight-line method over the estimated useful
lives of the respective assets, which range from 5 to 39 years.
•
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FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31 , 2012
• NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Advertising
The A&PC expenses advertising, marketing, and promotion costs as incurred.
Subsequent Events
Subsequent events are evaluated through the date the financial statements were available
to be issued, which is the date of the Independent Auditors' Report.
Funding
The A&PC is funded by a 1 % hotel, motel and restaurant tax on all revenue from the renting,
leasing, or otherwise furnishing of hotel or motel accommodations for profit in the City. The
tax also applies to the gross receipts or gross proceeds received by restaurants, cafes,
cafeterias, delis, drive-in restaurants, carry-out restaurants, concession stands, convenience
stores, grocery store restaurants, caterers and similar businesses as may be defined from
time to time by ordinance from the sale of prepared foods and beverages for on or off
premises consumption. The tax does not apply to such gross receipts or proceeds of
Organizations qualified under Section 501 (c)(3) of the Federal Internal Revenue Code.
The taxes are due the 20th day of the month following the month in which the taxes were
collected. If taxes become delinquent, the City Prosecutor seeks to collect the taxes.
Delinquent taxes totaled $24,358 at December 31 , 2012.
• Revenues collected from the taxes are to be used for advertising and promotion in the City
and its environs. Revenues are also to be used for the construction, reconstruction,
equipment, improvement, maintenance, repair, and operation of a convention center, for the
operation of tourist promotion facilities in the city, and for personnel and agencies necessary
to conduct the business of the A & P commission.
Investments
Investments of the A&PC represent the portion of a combined investment pool managed by
the City allocable to the A&PC. Investments include money market mutual funds, U.S.
Treasury obligations, corporate bonds and U.S. Government agency obligations. Money
market mutual funds, governmental securities and corporate bonds are recorded at fair
market value based on quoted market prices. Income related to investments is recorded
when earned. Income earned in the pool is allocated to the various funds and component
units weekly. At December 31 , 2012, the A&PC's proportionate share of the investment pool
was approximately 2.41 %.
I
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FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31 , 2012
• NOTE 2: COMMITMENTS
The A&PC has an agreement with the City to pay $673,000 per year, plus fees, for The Hotel
and Restaurant Gross Receipts Tax Bonds, Series 2003, issued to by the City to construct
and equip the Town Center, a multi-purpose civic center and the related parking facilities.
The bonds are secured by a 1 % gross receipts tax and the revenues from the operations of
the Town Center. The bonds bear interest at coupon rates ranging from 3.2% to 3.55% and
are set to mature in 2015. (See Note 9.)
In December of 2012, the A&PC committed to pay the University of Arkansas $500,000 to
remodel the University field house into a performance hall. The hall is expected to seat 700
and be used for local theatre and arts. The commitment will be paid in two equal
installments, one payable upon ground breaking and the other in December of 2013.
In November of 2012, the A&PC committed to pay up to $142,328 in funding requests from
various Fayetteville, Arkansas organizations for events to be hosted within the City in 2013.
NOTE 3: DEPOSITS IN FINANCIAL INSTITUTIONS
State law requires that municipal funds be deposited in federally insured banks located in the
state of Arkansas. The municipal deposits may be in the form of checking accounts, savings
accounts, and time deposits. Public funds may also be invested in direct obligations of the
• United States of America and obligations, the principal and interest of which, are fully
guaranteed by the United States of America.
The A&PC maintains separate bank accounts in two banks. Deposits with banks at
December 31 , 2012 amounted to $1 ,226,289, of which $334,468 was insured and the
remaining amount was collateralized by securities held in the A&PC's name.
The A&PC's portion of investments held by the City amounted to $ 1 ,811 ,938 and is held at
one financial institution in the name of the City. Approximately .30% of the pool is insured,
9.7% is collateralized by securities held in the City's name and the remaining balance is
invested in direct obligations of the United States of America.
NOTE 4: EMPLOYEE BENEFIT PLAN
The AVC offers a Simple IRA plan to all employees who meet the eligibility requirements.
The A&PC matches employee contributions up to 3% of compensation, while the employee
may contribute up to 10% of their salary. The commission of the A&PC has the authority to
amend the plan and contribution rate. The A&PC made contributions in the amount of
$ 12, 121 for the year ended December 31 , 2012.
•
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FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31 , 2012
• NOTE 5: CONCENTRATIONS AND RISK OF ACCOUNTING LOSS
Interest Rate Risk - As a means of limiting its exposure to fair value losses arising from rising
interest rates, the A&PC's investment policy is to attempt to match investment maturities with
cash flow requirements. The A&PC's investments are money market mutual funds, U.S.
Treasury obligations, corporate bonds and U.S. Government agency obligations.
Credit Risk - Credit risk is the risk that the issuer or other counterparty to an investment will
not fulfill its obligations. It is the A&PC's policy to minimize credit risk losses due to default
of security issuers or backers by limiting investments to the safest types of securities in
accordance with the City's investment policies. It is the City's policy to invest no more than
20% in corporate debt and securities of a management type investment company or
investment trust. The corporate bonds must be rated as Single A minus or better by both
Moody's Investor Service and Standard and Poor's at the time of purchase. Investment in
commercial paper will be rated A-1 /13-1 . Investment in management type investment
companies or investment trusts is limited to companies with portfolios who are limited to
U.S. Government obligations and repurchase agreements with approved collateralization.
The City's investments in corporate bonds ranged between A and BBB and the
government agencies were ranked AA+ by Standard & Poor's at December 31 , 2012.
Custodial Credit Risk - Custodial credit risk is the risk that, in the event of the failure of the
counterparty, the A&PC will not be able to recover the value of its investment or collateral
• securities that are in the possession of an outside party. (See Note 3).
Concentration of Credit Risk- The A&PC's investment policy, in accordance with the City's
investment policies, limits investment in any one issuer to 5% of the cost basis of the portfolio
and limits concentration in any one business sector to 15% of the cost basis of the portfolio
excluding U.S. Treasury securities and collateralized certificates of deposits. The A&PC had
no concentration risk as of December 31 , 2012.
Foreign Currency Risk- This risk relates to adverse affects on the fair value of an investment
from changes in exchange rates. The City's investment policy doesn't directly address
foreign currency risk. The City's investment manager only buys U.S. dollar pay securities.
The AVC had no investments that were denominated in foreign currency at December 31 ,
2012.
•
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FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31 , 2012
• NOTE 6: PROPERTY
A summary of changes in property is as follows:
December 31 , December 31 ,
2011 Additions Disposals 2012
Building $ 11340,856 $ 28,460 $ - $ 1 ,3691316
Furniture and Fixtures 34,550 - 343550
Land 198,621 - - 198,621
Equipment 92.310 6.686 98.996
11666,337 35, 146 - 19701 ,483
Less accumulated
depreciation 340.228 49.542 .
389770 i
_ i
$ 1 .326. 109 14 396 $ - $ 1 .311 .713
The original cost of fully depreciated property still in use by the ABPC at December 31 ,
2012 amounted to approximately $82,000.
NOTE 7: INVESTMENTS
• Investments are stated at fair value. Fair value and unrealized appreciation (depreciation) at
December 31 , 2012 are summarized as follows:
Unrealized
Appreciation
Cost Fair Value (Depreciation)
Treasuries and U.S. Agency
Obligations $ 1 ,540,582 $ 1 ,542, 105 $ 17523
Corporate Bonds 48,381 49,683 11302
Money Market 220. 150 220. 150
$ 1 .809. 113 $ 1 .811 .938 $ 2.825
The following schedule summarizes the investment return and its classification in the
Statement of Revenues, Expenditures and Changes in Fund Balance for the year ended
December 31 , 2012:
Interest and dividend income $ 111466
Net unrealized gain (loss) on investments (1 ,496)
Total investment income
•
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FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31 , 2012
• NOTE 8: FAIR VALUE MEASUREMENTS
Financial Accounting Standards Board (FASB) Codification Topic Fair Value
Measurements and Disclosures establishes a framework for measuring fair value. That
framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques
used to measure fair value. The fair value hierarchy gives the highest priority to quoted
prices in active markets for identical assets or liabilities (Level 1 ) , and the lowest priority to
unobservable inputs (Level 3). If the inputs used to measure the investments fall within
different levels of the hierarchy, the categorization is based on the lowest level of input that
is significant to the fair value measurement of the investment.
Investments recorded in the Statement of Assets, Liabilities and Fund Balance based on
the inputs to valuation techniques are as follows:
Level 1 - These are investments where values are based on unadjusted quoted
prices for identical assets in an active market that the A&PC has the ability to access.
These investments are comprised of money market mutual funds, corporate bonds,
U.S Agency obligations and U .S Treasuries.
Level 2 - These are investments where values are based on quoted prices in markets
that are not active or model inputs that are observable either directly or indirectly for
substantially the full term of the investments.
• Level 3 - These are investments where values are based on prices or valuation
techniques that require inputs that are both unobservable and significant to the
overall fair value measurement. These inputs reflect assumptions of management
about assumptions market participants would use in pricing the investments.
The following table presents the A&PC's hierarchy for the investments measured at fair
value on a recurring basis as of December 31 , 2012:
Quoted Market Other
Prices in Active Observable Unobservable
Markets Inputs Inputs
Level i Level 2 Level 3
Marketable securities
Treasuries and U.S.
i Agency Obligations $ 19542, 105 $ $
Corporate Bonds 49,683
Money Market 220. 150
•
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FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31 , 2012
• NOTE 9: RELATED PARTY TRANSACTIONS
As stated in Ordinance Number 95-1 , the commission of the A&PC consists of seven
members, four of which are owners or managers of businesses in the tourism industry which
collect the hotel or restaurant taxes levied. Thus, four members of the commission are
employed by restaurants or hotels that pay the tax which is the primary funding for the A&PC.
During the year ended December 31 , 2012, the A&PC paid approximately $33,000 for
expenses related to operational services performed by the City for the lease of parking
spaces.
The A&PC had a receivable from the City for $1 , 188 at December 31 , 2012, for a refund of
fees related to the bond issue in excess of the required amount held out of tax proceeds by
the City. The A&PC had a payable to the City of $3,287 at December 31 , 2012 for net
interfund transactions recorded during the year.
The A&PC has an agreement to pay the City a collection fee of 2% of the taxes collected.
During the year ended December 31 , 2012, the A&PC paid collection expenses of $50,423 to
the City in exchange for the City collecting tax revenue on behalf of the A&PC.
The A&PC has an agreement with the City to pay $673,000 per year, plus fees, for bonds
secured by a 1 % gross receipts tax. (See Note 2.)
• NOTE 10: SUBSEQUENT EVENT
Subsequent to year end, the A&PC committed to give the Walton Arts Center $600,000 to
assist in the design, pre-construction, and construction costs of the expansion of the Walton
Arts Center's Fayetteville facility.
•
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• BEALL BARCLAY
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Board of Commissioners
Fayetteville Advertising and Promotion Commission
Fayetteville, Arkansas
We have audited, in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States,
the financial statements of Fayetteville Advertising and Promotion Commission
("A&PC") as of and for the year ended December 31 , 2012 and have issued our report
thereon dated May 1 , 2013. In our report we expressed an adverse opinion on accounting
principles generally accepted in the United States of America because the financial
statements are prepared on the basis of the financial reporting provisions prescribed or
permitted by the State of Arkansas (regulatory basis) and not in accordance with accounting
principles generally accepted in the United States of America. In our report we expressed an
unqualified opinion on the regulatory basis of accounting, which is a basis of accounting other
• than principles generally accepted in the United States of America.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered A&PC's
internal control over financial reporting (internal control) to determine the audit procedures
that are appropriate in the circumstances for the purpose of expressing our opinion on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness
of the entity's internal control. Accordingly, we do not express an opinion on the
effectiveness of the entity's internal control.
A deficiency in internal control exists when the design or operation of a control does not
allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, misstatements on a timely basis. A material
weakness is a deficiency, or a combination of deficiencies, in internal control, such that
there is a reasonable possibility that a material misstatement of the entity's financial
statements will not be prevented, or detected and corrected on a timely basis. A significant
deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those
charged with governance.
•
Our consideration of internal control was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control
• that might be material weaknesses or significant deficiencies. Given these limitations,
during our audit we did not identify any deficiencies in internal control that we consider to
be material weaknesses. However, material weaknesses may exist that have not been
identified .
Compliance and Other Matters
As part of obtaining reasonable assurance about whether A&PC's financial statements are
free of material misstatement, we performed tests of its compliance with certain provisions of
laws, regulations, contracts, and grant agreements, noncompliance with which could have a
direct and material effect on the determination of financial statement amounts. However,
providing an opinion on compliance with those provisions was not an objective of our audit
and, accordingly, we do not express such an opinion. The results of our tests disclosed no
instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.
This report is intended solely for the information and use of management, the Board of
Commissioners, and the Arkansas Division of Legislative Audit, and is not intended to be
and should not be used by anyone other than these specified parties.
BALL / OMP
ANY, PLC
Certified Public Accountants
• Rogers, Arkansas
May 1 , 2013
• I
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CITY OF FAYETTEVILLE, ARKANSAS
ADVERTISING AND PROMOTION COMMISSION
A RESOLUTION RECOMMENDING TO THE CITY THE ISSUANCE
AND SALE OF (1) APPROXIMATELY $1,500,000 OF HOTEL AND
RESTAURANT GROSS RECEIPTS TAX REFUNDING BONDS FOR THE
PURPOSE OF REFUNDING THE CITY'S OUTSTANDING HOTEL AND
RESTAURANT GROSS RECEIPTS TAX REFUNDING BONDS, SERIES
20039 (2) APPROXIMATELY $6,900,000 OF HOTEL AND RESTAURANT
GROSS RECEIPTS TAX AND TOURISM REVENUE CAPITAL
IMPROVEMENT BONDS FOR THE PURPOSE OF FINANCING
CERTAIN CAPITAL IMPROVEMENTS IN CONNECTION WITH THE
PROPOSED WALTON ARTS CENTER EXPANSION AND
RENOVATION, AND (3) APPROXIMATELY $3,500,000 OF HOTEL AND
RESTAURANT GROSS RECEIPTS TAX AND TOURISM REVENUE
CAPITAL IMPROVEMENT BONDS FOR THE PURPOSE OF
FINANCING CERTAIN CAPITAL IMPROVEMENTS IN CONNECTION
WITH A PROPOSED REGIONAL PARK; AND PRESCRIBING OTHER
MATTERS RELATING THERETO.
WHEREAS, the Advertising and Promotion Commission (the "Commission") of the
• City of Fayetteville, Arkansas (the "City") was established under the provisions of the
Advertising and Promotion Commission Act, Arkansas Code Annotated (2008 Repl.)
§ §26-75-601 et seq. (as from time to time amended, the "Act"); and
WHEREAS, pursuant to the Act and following the recommendation of the Commission,
the City has previously issued its City of Fayetteville, Arkansas Hotel and Restaurant Gross
Receipts Tax Refunding Bonds, Series 2003, dated July 1 , 2003 (the "Series 2003 Bonds"), for
the purpose of refinancing a portion of the costs of constructing the Fayetteville Town Center;
and
WHEREAS, the Series 2003 Bonds were originally issued in the aggregate principal
amount of $6,335,000, of which $ 1 ,885,000 presently remains outstanding; and
WHEREAS, the Commission finds that the Walton Arts Center is a cultural arts and
entertainment facility and its expansion and renovation will constitute a "tourism project" within
the meaning of Arkansas Code Annotated ( 1998 Repl.) § 14- 170-205 which will secure and
develop tourism and thereby stimulate and enhance the economic growth and well-being of the
City and its people; and
WHEREAS, the Commission recommends that the City assist in the completion of the
proposed Walton Arts Center expansion and renovation (the "Walton Arts Center
Improvements") through the issuance of its capital improvement bonds under the authority of the
Act and Arkansas Code Annotated ( 1998 Repl.) § 14- 170-201 et seq. ; and
•
4843-6717-3376.4
• WHEREAS, the Commission finds that the City' s proposed regional park will constitute
a "public recreation facility" and "city park" within the meaning of Arkansas Code Annotated
(2008 Repl.) §26-75-606 and a "tourism project" within the meaning of Arkansas Code
Annotated ( 1998 Repl.) § 14- 170-205 which will secure and develop tourism and thereby
stimulate and enhance the economic growth and well-being of the City and its people; and
WHEREAS, the Commission recommends that the City assist in the financing of the
acquisition, construction and equipping of a regional park (the "Park Improvements") through
the issuance of its capital improvement bonds under the authority of the Act and Arkansas Code
Annotated ( 1998 Repl.) § 14- 170-201 et seq. ; and
WHEREAS, in order to accomplish the financing of the Walton Arts Center
Improvements and/or the Parks Improvements, it is desirable to restructure the City's existing
debt service obligations with respect to the Series 2003 Bonds by refunding such bonds; and
NOW, THEREFORE, BE IT RESOLVED by the Advertising and Promotion
Commission of the City of Fayetteville, Arkansas that:
Section 1 . The issuance and sale of Hotel and Restaurant Gross Receipts Tax
Refunding Bonds (the "Refunding Bonds") in the approximate principal amount of $ 1 ,500,000 is
hereby recommended to the City in order to provide a portion of the funds needed to redeem the
Series 2003 Bonds, to establish a debt service reserve, and to pay the costs of issuing the
Refunding Bonds, including the procurement of bond insurance if deemed economically feasible.
• Section 2. The issuance and sale of Hotel and Restaurant Gross Receipts Tax and
Tourism Revenue Capital Improvement Bonds (the "Walton Arts Center Bonds") in the
approximate principal amount of $6,900,000 is hereby recommended to the City in order to
provide a portion of the funds needed to finance the Walton Arts Center Improvements, to
establish a debt service reserve, and to pay the costs of issuing the Walton Arts Center Bonds,
including the procurement of bond insurance if deemed economically feasible.
Section 3. The issuance and sale of Hotel and Restaurant Gross Receipts Tax and
Tourism Revenue Capital Improvement Bonds (the "Parks Bonds") in the approximate principal
amount of $3 ,500,000 is hereby recommended to the City in order to provide a portion of the
funds needed to finance the Parks Improvements, to establish a debt service reserve, and to pay
the costs of issuing the Parks Bonds, including the procurement of bond insurance if deemed
economically feasible.
Section 4. The Chairman is hereby authorized and directed to do any and all things
necessary to effect the issuance, sale, execution and delivery of the Refunding Bonds, the Walton
Arts Center Bonds and the Parks Bonds and the performance of all acts of whatever nature
necessary to effect and carry out the authority conferred by this Resolution.
Section 5. The provisions of this Resolution are hereby declared to be severable, and
if any section, phrase or provision shall for any reason be declared to be illegal or invalid, such
declaration shall not affect the validity of the remainder of the sections, phrases or provisions of
• this Resolution.
2
4843-6717-3376.4
• Section 6. All resolutions and parts thereof in conflict herewith are hereby repealed
to the extent of such conflict.
ADOPTED AND APPROVED THIS DAY OF 2013 .
Chairman
•
•
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4843-6717-3376.4