HomeMy WebLinkAboutOrdinance 5429 i 1111111 111111 iii 11111 11111 11111 11111 11111 11111 11111 11111 11111 11111 11111 ilii ilii Doc ID: 014176320002 Type: REL Kind: ORDINANCE Recorded: 08/26/2011 at 02:37:48 PM . Fee Amt: $20.00 Paae 1 of 2 r-y ; Washinaton Countv. AR �;� Bette Stews Circuit ClerkCn/� i 3>• ET' —' File2011-00024173 � _ms r �7 ....... ORDINANCE NO. 5429 , x� AN ORDINANCE CALLING A SPECIAL ELECTION IN THE CITY OF FAYETTEVILLE, ARKANSAS ON THE QUESTION OF LEVYING A ONE PERCENT SALES AND USE TAX WITHIN THE CITY OF FAYETTEVILLE, ARKANSAS TO REPLACE THE ONE PERCENT SALES AND USE TAX EXPIRING ON JUNE 30, 2013; PROVIDING FOR AN EXPIRATION DATE FOR SUCH SALES AND USE TAX OF JUNE 30, 2023 WHEREAS, the City Council of the City of Fayetteville, Arkansas has passed on the 2°d day of August, 2011, Ordinance No. 5429 providing for the levy of a one percent (1%) Sales and Use Tax within the City to replace the current one percent (1%) Sales and Use Tax which expires on June 30, 2013; and WHEREAS, the purpose of this Ordinance is to call a special election on the question of continuing the levy of this Sales and Use Tax. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,ARKANSAS: Section 1: That there be, and there is hereby called, a special election to be held on the 11,h day of October, 2011, at which election there shall be submitted to the electors of the City of Fayetteville the question of the levy of the Sales and Use Tax. Section 2: That the question of levying the Sales and Use tax shall be placed on the ballot for the election in substantially the following form: Vote on measure by placing an "X" in the square opposite the measure either for or against. FOR adoption of a 1% local sales and use tax within the City of Fayetteville to begin July 1, 2013 to replace the current 1% local sales and use tax. This replacement tax shall expire on June 30, 2023 ..............................[ ] AGAINST adoption of a 1% sales and use tax within the City of Fayetteville to begin on July 1, 2013, to replace the current 1% local sales and use tax. This replacement tax shall expire on June 30, 2023 ...........................[ ] Page 2 Ordinance No. 5429 Section 3. 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 municipal elections unless otherwise provided in Title 26, Chapter 75, Subchapter 2 of the Arkansas Code of 1987 Annotated (the "Authorizing Legislation") and only qualified voters of the City of Fayetteville shall have the right to vote at the election. Section 4. That the results of the election shall be proclaimed by the Mayor, and his proclamation shall be published one time in a newspaper published in the City and having a general circulation therein, which Proclamation shall advise that the results as proclaimed shall be conclusive unless attacked in the courts within thirty days after the date of publication. Section 5. 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 Commissioner of Revenues of the State of Arkansas as soon as practical. Section 6. That the Mayor and City Clerk, for and on behalf of the City, be, and they are hereby, authorized and directed to do any and all things necessary to call and hold the special election as herein provided and, if the levy of the Sales and Use tax is approved by the electors, to cause the Sales and Use Tax to be collected in accordance with the Authorizing Legislation, and to perform all acts of whatever nature necessary to carry out the authority conferred by this Ordinance. Section 7. That all ordinances and parts thereof in conflict herewith are hereby repealed to the extent of such conflict. PASSED and APPROVED this 2nd day of August, 2011. APPROVED: ATTEST: By: By: UIO&ELD J N, Mayor SONDR E. SMITH, City Clerk/Treasurer O�Illll!!lYiyy'� . ,,0'1 /TRS`/oo,, Gni Y OF °. sU• ° FAYETFEVILLE m • e�a Irk J • o -9s.�RKaNSP.J2�®` s0a"11,GTON54G,�`° Washington County, AR I certify this instrument was filed on 08/26/2011 02:37:48 PM and recorded in Real Estate File Number 2011-00024173 Bette Stamp Circuit Clerk City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements August 2,2011 City Council Meeting Date Agenda Items Only Paul A. Becker Finance and Internal services Finance Submitted By Division Department Action Required: This is a recommendation to call a special election on October 11,2011 to consider the City's request to continue the one cent Sales tax and Use Tax .The ballot will request the Sales Tax be continued for an additional 10 years from its current expiration date.. $20,000 $ 266,826.00 Services and Charges Cost of this request Category/Project Budget Program Category/Project Name 1010.6600.5318.00 $ 126,402.00 Miscellaneous Account Number Funds Used to Date Program/Project Category Name $ 140,424.00 General Project Number Remaining Balance Fund Name Budgeted Item Budget Adjustment Attached 0 4j", 1- 18-10t, Previous Ordinance or Resolution# Department Director Date Original Contract Date: -ZAt Original Contract Number: City Attorney Date Q T � ..6cl� dtf 07-18-1 1 P03:02 RCVD Finance and Internal Services Director Date Received in City Clerk's Office ko.414 Chie of Sta Date UERE Received in Mayor's Office Mayor Da e Comments: Revised January 15,2009 • �a e eVl e THE CITY OF FAYETTEVILLE,ARKANSAS DEPARTMENT CORRESPONDENCE ARKANSAS • . CITY COUNCIL AGENDA MEMO To: Mayor Jordan and Members of the Fayetteville City Council Thru: Don Marr, Chief of Staff From: Paul A Becker, Finance Director Date: 7/15/25011 Subject: Request for an Ordinance continuing the one percent city sales and use tax and providing for a Special Election called for that purpose on October 11, 2011. A budget amendment is also requested to provide for costs of an election. Background: As you are all aware, the Arkansas Statutes provide enabling legislation for a levy of a one percent City-Wide Sales and Use Tax if approved by the voters. In 2002 the citizens of Fayetteville elected to continue the one percent City-Wide Sales Tax which was then scheduled to expire in June, 2003. The Sales Tax will continue until June, 2013 pursuant to the authorizing ordinance voted on. As we approach 2013, it is extremely important that adequate lead time be provided for consideration of the request for continuation of this tax. It is also important that the citizens consider the continuation of this tax before they are presented with any request for new Sales Taxes proposed by other jurisdictions. The continuation of this Sales Tax must again be authorized by the voter and the administration is, therefore, requesting a special election for that purpose be held on October 11, 2011. There was no provision in the 2011 budget for the cost of this election so a budget amendment to cover the necessary costs is also being requested. Issues As your Chief Financial Officer it is my responsibility to identify issues and potential ramifications associated with the loss of the City-Sales Tax revenue if not continued via voter approval. I will try to do this as simply and clearly as possible. The City collects approximately $15,400,000 annually from the City-Wide Sales and Use Tax.That amount is split in a 60-40 ratio between General Fund Operations and General Capital Improvements respectively. In dollars this is $9,240,000 for operations and $6,160,000 for Capital. In percentage terms that is 27.6% of the General Fund Revenue and 100% of the General Fund Capital Improvement Program. A revenue loss of that magnitude could not be made by other sources. It is also important to note that other revenue sources are currently experiencing downward pressures in the short run. Therefore; we would have to cut expenses and related services dramatically. The General Capital Program would disappear. THE CITY OF FAYETTEVILLE,ARKANSAS A quick review of the General Fund Expenditure Budget will indicate that 82% of that budget is for personnel services. That is approximately $27,500,000. If we cut each category in the budget in direct proportion to the revenue loss (27.6%)the personnel services category would have to be reduced by about $7,600,000. There are 455 authorized positions in the General Fund. Twenty-seven and one half percent of authorized positions is 125 but the loss of jobs in number would be larger than that and could be as many as 150. Since Public Safety is about 60% of the numerical total, that could mean 90 job reductions in that sector alone. The General Capital Improvement Program funds many important programs such as: The Street Paving Program The Trail Program Drainage Programs Library Materials City Capital and Equipment Replacement Program IT Programs Amounts currently provided from.the Sales Tax Capital Fund for these programs would be eliminated. The current amount funded is $6,160,000 per year. Summary : The above discussion should not be construed as a plan of action if the Sales and Use Taxes are not continued. However, I believe that the facts shown above indicate both the magnitude and potential service reductions that the loss of the City's largest single revenue producing tax would cause. The citizens of Fayetteville have shown themselves to be thoughtful and intelligent voters and I am confident that after being shown the facts they will overwhelmingly vote to continue this tax which provides funding for many vital programs. BUDGET IMPACT: The cost of the requested special election is estimated to be$20,000 and a budget amendment for that amount is attached. eaLil eevDepartmental Correspondence LEGAL • • DEPARTMENT Kit Williams City Attorney TO: Mayor Jordan Jason B.Kelley Assistant City Attorney Don Marr, Chief of Staff Paul Becker, Finance Director FROM: Kit Williams, City Attorney �.... �� DATE: July 12, 2011. RE: Sales Tax Election I wrote you on June 15 concerning your request for me to prepare sales tax renewal and election ordinances. You have now requested these ordinances to reflect an election for October 11th. That is within the 50-120 days after passage of the ordinances if such ordinances are passed by the City Council on August 2, 2011. November 8th would also be a legal date if the ordinances are passed on August 2nd, If the ordinances were not passed until the August 16th City Council meeting, the possible election dates would be October 11, November 81h�,and December 13th I will send the attached ordinances to the Department of Finance and Administration pursuant to A.C.A. §26-25-107 for its review. The Department "shall approve or reject the ordinance and provide written notice to the city or county within fifteen (15) days. of receipt of the ordinance." A.C.A. §25-25- 107(b)(1). f. KIT WILLIAMS FAYETTEVILLE CITY ATTORNEY JASON B.KELLEY Assistant City Attorney A ay� [eville Judy Housley Office Manager ARKANSAS Phone (479)575-8313 113 W.Mountain,Suite 302 FAX (479)575-8315 TDD (479)521-1316 Fayetteville,AR 72701-6083 July 13, 2011 Department of Finance & Administration DFA Building 1509S. 7 1h Street, Room 401 Little Rock, AR 72201 RE: Proposed Sales tax Ordinances Levying a 1% Sales and Use Tax and Calling a Special Election Dear Department of Finance & Administration: Pursuant to A.C.A. §26-25-107, I have enclosed herein two ordinances to levy a 1% sales and use tax to replace our current levy that automatically expires on June 30, 2013 and to call a Special Election on this replacement sales tax for October 11, 2011. I expect that the Fayetteville City Council will pass these ordinances during its regular meetings on either August 2"d or August 161H Please review these ordinances which I drafted to be in substantial conformity with your proposed draft ordinances (supplied by the Arkansas Municipal League) and our currently effective sales tax ordinance. Thank you for your review of these ordinances. With kindest re ds, HIT WILLIAMS Fayetteville City Attorney. KW/jh cc: Mayor Jordan Don Marr, Chief of Staff Paul Becker, Financial Director ORDINANCE NO. AN ORDINANCE CALLING A SPECIAL ELECTION IN THE CITY OF FAYETTEVILLE, ARKANSAS ON THE QUESTION OF LEVYING A ONE PERCENT SALES AND USE TAX WITHIN THE CITY OF FAYETTEVILLE, ARKANSAS TO REPLACE THE ONE PERCENT SALES AND USE TAX EXPIRING ON JUNE 30, 2013; PROVIDING FOR AN EXPIRATION DATE FOR SUCH SALES AND USE TAX OF JUNE 30, 2023 WHEREAS, the City Council of the City of Fayetteville, Arkansas has passed on the 5th day of July, 2011, Ordinance No. providing for the levy of a one percent (1%) Sales and Use Tax within the City to replace the current one percent(1%) Sales and Use Tax which expires on June 30, 2013; and WHEREAS, the purpose of this Ordinance is to call a special election on the question of continuing the levy of this Sales and Use Tax. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That there be, and there is hereby called, a special election to be held on the 11th day of October, 2011, at which election there shall be submitted to the electors of the City of Fayetteville the question of the levy of the Sales and Use Tax. Section 2: That the question of levying the Sales and Use tax shall be placed on the ballot for the election in substantially the following form: Vote on measure by placing an "X" in the square opposite the measure either for or against. FOR adoption of a I% local sales and use tax within the City of Fayetteville to begin July 1, 2013 to replace the current 1% local sales and use tax. This replacement tax shall expire on June 30, 2023 ..............................[ ] AGAINST adoption of a I% sales and use tax within the City of Fayetteville to begin on July 1, 2013, to replace the current 1% local sales and use tax. This replacement tax shall expire on June 30, 2023 ...........................[ ] Section 3. 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 municipal elections unless otherwise provided in Title 26, Chapter 75, Subchapter 2 of the Arkansas Code of 1987 Annotated (the "Authorizing Legislation") and only qualified voters of the City of Fayetteville shall have the right to vote at the election. Section 4. That the results of the election shall be proclaimed by the Mayor, and his proclamation shall be published one time in a newspaper published in the City and having a general circulation therein, which Proclamation shall advise that the results as proclaimed shall be conclusive unless attacked in the courts within thirty days after the date of publication. Section 5. 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 Commissioner of Revenues of the State of Arkansas as soon as practical. Section 6. That the Mayor and City Clerk, for and on behalf of the City, be, and they are hereby, authorized and directed to do any and all things necessary to call and hold the special election as herein provided and, if the levy of the Sales and Use tax is approved by the electors, to cause the Sales and Use Tax to be collected in accordance with the Authorizing Legislation, and to perform all acts of whatever nature necessary to carry out the authority conferred by this Ordinance. Section 7. That all ordinances and parts thereof in conflict herewith are hereby repealed to the extent of such conflict. PASSED and APPROVED this 2nd day of August, 2011. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer NORTHWEST ARKANSAS DEMOCRAT-GAZETTE NORTHWESTARKANSAS THE MORNING NEWS OF SPRINGDALE THE MORNING NEWS OF ROGERS RECEIVED PAPE NORTHWEST ARKANSAS TIMES LLC BENTON COUNTY DAILY RECORD AUG 1 6 2 01 i 212 NORTH EAST AVENUE.FAYETTEVILLE,ARKANSAS 72701 1 P.O.BOX 1607, 72702 1 479-442-1700 1 WWW.NWANEWS.COM CITY OF FAYETTEVILLE CITY CLERK'S OFFICE AFFIDAVIT OF PUBLICATION I, Cathy Wiles, do solemnly swear that I am the Legal Clerk of the Northwest Arkansas Newspapers, LLC, printed and published in ORDINANCE NO. SM Washington and Benton County, Arkansas, bona fide circulation, AN ORDINANCE O CE OALLIN I A,AFML ELS ON T E THE Gf1Y OF FAYETTEVILL.E,Aials`ANSAS ON THE: Jif L Y that from my own personal knowledge and reference to the files 0111st'ION Or LEWING A ONE PEACENT SALES AatcA++sas of said publication, the advertisement of- ARKANSASO USE XO REPLACE THE ONEEPERCEE. ARKANSAS TO REPLACE THE DNI: PERCENT SALES AND USE TAX EXPIRING ON JUNE 30,2013;PROVIDING FOR AN EXPIRATION DATE FOR SUCH SALES'AND USE TAX OF JUNE 30,2023 WHEREAS,the City Council of the City of Fayetteville,Arkansas has passed on the 2nd day Ciof Fa etteville of August,2011,Ordinance No.5429 providing for the levy of a one percent(1%)Sales and `J y Use Tax within the City to replace the current one percent(1%)Sales and Use Tax which Ordinance 5429 expires on June 30,2013;and WHEREAS,the purpose of this Ordinance is to call a special election on the question of continuing the levy of this Sales and Use Tax. Was inserted in the Regular Editions on: NOW,THEREFORE,BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF August 11, 2011 FAYETTEVILLE,ARKANSAS: Section 1.That there be,and there is hereby called,a special election to be held on the 11th day of October,2011,at which election there shall be submitted to the electors of the City of Fayetteville the question of the levy of the Sales and Use Tax, Publication Charges: $ 188.06 Section 2:That the question of levying the Sales and Use tax shall be placed on the ballot for the election in substantially the following form: Vote on measure by placing an "X"-in the square opposite the measure either for or against. FOR adoption of a 1%local sales and use tax within the City of Fayetteville to begin July 1, 2013 to replace the current 1%local sales and use tax. This replacement tax shall expire on Cathy Wiles June 30,2023 .............................•I 1 AGAINST adoption of a 1%sales and use tax within the City of Fayetteville to begin on July 1,2013,to replace the current 1%local sales and use tax. This replacement tax shall expire on June 30,2023 ...........................I 1 Section 3.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 municipal elections unless otherwise provided in Title 26,Chapter 75,Subchapter 2 of the Arkansas Code of 1987 Subscribed and sworn to before me 1 1 Annotated(the"Authorizing Legislation")and only qualified voters of the City of Fayetteville This day of C1�; _erF— , 201 1, shall have the right to vote at the election. b _ Section 4.That the results of the election shall be proclaimed by the Mayor,and his procla- mation shall be published one time in a newspaper published in the City and having a general circulation therein,which Proclamation shall advise that the results as proclaimed shall be conclusive unless attacked in the courts within thirty days after the date of publication. {r�I Section 5.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 Commissioner of Notary Pubh y/ Revenues of the State of Arkansas as soon as practical. My Commission Expires: �f Ly to/V Section 6.That the Mayor and City Clerk,for and on behalf of the City,be,and they are hereby,authorized and directed to do any and all things necessary to call and hold the spe- cial election as herein provided and,if the levy of the Sales and Use tax is approved by the electors,to cause the Sales and Use Tax to be collected in accordance with the Authorizing Legislation,and to perform all acts of whatever nature necessary to carry out the authority i conferred by this Ordinance. Section 7.That all ordinances and parts thereof in conflict herewith are hereby repealed to the extent of such conflict. PASSED and APPROVED this 2nd day of August,2011. APPROVED: ATTEST: By- By: LIONELD JORDAN,Mayor SONDRA E.SMITH,City Clerk/Traasurer **NOTE** Please do not pay from Affidavit. Invoice will be sent.