HomeMy WebLinkAbout116-90 RESOLUTION.4•
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RESOLUTION NO. 116-90
A RESOLUTION APPROVING AN ESCROW ACCOUNT OF
$1,000,000 A YEAR PLUS INTEREST FROM NON -
REGULAR FEE AND TAX REVENUES OVER A TEN YEAR
PERIOD TO -PAY FOR SCHOOL IMPROVEMENTS AND
AUTHORIZE THE FAYETTEVILLE CITY MANAGER TO
NEGOTIATE A COOPERATIVE AGREEMENT WITH THE
FAYETTEVILLE SCHOOL BOARD FOR THE CONSTRUCTION
OF AN ADDITION TO THE HIGH SCHOOL USING SUCH
NON -REGULAR FEE AND TAX REVENUE.
WHEREAS, ,the City of Fayetteville is committed to assisting
the Fayetteville School District in the building of $10 million in
school construction as approved by the voters in November of 1988
and;
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WHEREAS, the City has been advised by bond counsel that the
City cannot issue sales tax bonds to construct or finance school
board projects and; -
WHEREAS, the'City has been advised by' legal counsel that the
City cannot contribute sales tax proceeds directly to the school
board for construction and;
WHEREAS, it appears that the giving of non -regular tax and
fee revenues, either directly or indirectly through construction
and lease -back agreements, is the only legally workable and
financially feasible method of providing $10,000,000 in school
construction.
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE CITY OF FAYETTEVILLE, ARKANSAS:
Section 1. That the Board of Directors authorizes the
City Manager to seek to escrow $1,000.000 a year plus interest
From the General Fund, non -regular fee and tax revenues over a ten
year period to be used to assist the school board in school
construction projects.. The water and sewer fund is authorized to
use "pay as you go" sales tax revenue freed by not performing
school projects.
Section 2. That the Board of Directors authorizes the
City Manager to negotiate a cooperative agreement with the
Fayetteville School Board for the construction of an addition to
the highschool using such non -regular fee and tax revenue.
PASSED AND APPROVED this 17th day of July
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APPROVED:
. 1990.