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HomeMy WebLinkAbout83-86 RESOLUTIONRESOLUTION ND. 8386 A RESOLUTION EXPRESSING THE INTENT OF THE FAYETTEVIT T F BOARD OF DIRECTORS TO PLEDGE A PORTION OF THE CITY'S SHARE OF THE 1% COUNTY SALES AND USE TAX TO SECURE THE PAYMENT OF AMENDMENT 62 CAPITAL IMPROVEMENT BONDS ISSUED TO FINANCE THE CITY'S SHARE OF AN ARTS CENTER TO BE JOINTLY OWNED BY THE CITY OF FAYETTEVITI F AND THE UNIVERSITY OF ARKANSAS. WHEREAS, the City of Fayetteville and the Board of Trustees of the University of Arkansas propose to enter into an Interlocal Cooperation Agreement for the construction and operation of an Arts Center; WHEREAS, the City and the University will each contribute $3,000,000 to finance construction of said Arts Center; WHEREAS, the City proposes to finance its share of the Arts Center construction costs by issuing capital improvement bonds under Amendment 62 to the Arkansas Constitution; WHEREAS, surplus monies in the Pledged Revenue Fund under the Trust Indenture executed by the City to secure payment of the tourism revenue bonds issued to finance construction of the Continuing Education Center cannot be pledged toward payment of the Arts Center bonds; and WHEREAS, to secure payment of the Arts Center bonds, the City proposes to pledge a portion of the City's share of the 1% sales and use tax levied by Washington County. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIREC1Ut.S OF THE CITY OF FAwmanni1R, ARKNGAS: Section 1. That the Board of Directors hereby expresses its intent to secure payment of Amendment 62 capital improvement bonds issued to partially finance construction of an Arts Center by pledging a portion of the City's share of the 1% sales and use tax levied by Washington County, Arkansas. Said pledge shall be in an amount equivalent to 50% of the annual surplus monies in the Pledged Revenue Fund under the Trust Indenture executed by .the City to secure payment of its Continuing Education Center Tourism Revenue Bonds. -2 -- Section 2. That the Board of Directors hereby expresses its intent to use surplus monies from the CEC Pledged Revenue Fund for the purposes that the aforesaid sales tax revenues would otherwise have been used in accordance with previous allocations by the Board of Directors. PASSED AND APPROVED this 19th day of august ATTEST o • • 1 tv APPROVED BY: Mayor 1986.