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HomeMy WebLinkAbout77-95 RESOLUTIONRESOLUTION NO. 77-95
A RESOLUTION APPROVING AN AGREEMENT WITH THE
STATE BOARD OF FINANCE FOR TURNBACK OF SALE
AND INCOME TAX FUNDS FOR THE CONTINUING
EDUCATION CENTER (CEC) TINDER THE TOURIST AND
ENTERTAINMENT FACILITIES ASSISTANCE ACT.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the Council hereby authorizes Mayor and City Clerk to execute an
agreement with the State Board of Finance for turnback of sale and income tax funds for the
Continuing Education Center (CFC) under the Tourist and Entertainment Facilities Assistance
Act. A copy of the agreement is attached hereto marked Exhibit "A" and made a part hereof.
PASSED AND APPROVED this 6th day of June 1995.
APPROVED:
By: 4110:1)/.4.--
fired
1"1/1!641)!.4%
Died Hanna, Mayor
ATTEST: i-
PO e: atc
Traci Paul, City Clerk
•
•
EXHIBIT A
AGREEMENT
This AGREEMENT executed as of the p2$t day of (,(pa
1993``, by and between the State Board of Finance, an agency cf the
State of Arkansas (hereinafter called "State") and the City of
Fayetteville, Arkansas, a City of the first class organized and
existing pursuant to the laws of the State of Arkansas (hereinafter
called "City").
W I T N E S S E T H:
WHEREAS, the State and the City executed an agreement dated
July 1, 1983, pursuant to which the City has received financial
assistance from the State as authorized by the"City-County Tourist
Meeting and Entertainment Facilities Assistance Law," Act 763, Acts
of Arkansas of 1977, as amended; and
WHEREAS, a copy of said agreement is attached hereto marked
Exhibit "A" and incorporated herein by reference thereto; and
WHEREAS, said agreement provides that the term thereof shall
be for two (2) years commencing July 1, 1983, but subject to
approval of the General Assembly, will be extended from time to
time for additional terms, which additional terms shall not exceed
two (2) years; and
WHEREAS, said agreement provides that the City will
recertify, at the heginning of each two year term that said
agreement is extended, for the State's consideration and determi-
nation, the additional State sales and income tax revenues to he
generated by said :our st_ Meet:nq facilities cf the City during the
ensuing term all for the purpose of computing the amount of State
assistance to be paid the City for said ensuing term.
NOW, THEREFORE, THE PARTIES HERETO MUTUALLY AGREE AS FOLLOWS:
I. The aforesaid agreement between. the State and City dared
July 1, 1983, shall be extended for ar: additional term of two ;2)
years commencing July 1, 1995.
II. The City certifies to the State that the additional State
sales and income tax revenues to be derived from the City's Tourist
Meeting Facilities is estimated, projected or found to be $575,881
for the fiscal year 1995-1996 and $575,881 for the fiscal year
1996-1997.
III. The State hereby covenants and agrees that it will
certify to the State Treasurer the amount of assistance to be paid
the City which the State hereby agrees to be the sum of $343,865
for the fiscal year 1995-:996 and 5340,165 for the fiscal year
1996-1997 and directs the said treasurer to make quarterly payments
to said City from the "City-Ccunty Tourist Facilities Aid Fund"
established pursuant to the provisions ot Act 763, Acts ot Arkansas
of 1977, as amended.
_V. As modified by this agreement, the agreement between the
State and the City dated July 1953, shall continue to full force
and effect.
Thi c AGREEMENT cx::cutea in dun : i ca' e of lginals as of the 223V
day of , 1911i
ATTEST:
By:
_lam 44
Title:
ATTEST:
By: (� (71( )0.IC,-J
City Clerk
STATE BO
Title:
NANCE
City OF YET
Ey LLE, ARKANSAS
By: /1141,\ 1 ht-i�
M yor
•
•
EXHIBIT 'A"
Page I of 4
AGREEMENT
•
THIS AGREEMENT made and entered into this 1st day of Jdly,
1983, by and between the State Hoard of Finance, an Agency of the
State of Arkansas (hereinafter called "State') and the City of
Fayetteville, Arkansas, a city of the first class organized and exist-
ing pursuant to the laws of the State of Arkansas (hereinafter
called 'City"):
WITNESSETH
WHEREAS, Act 763, Acts of Arkansas of 1977, as amended, includ-
ing Act 356, Acts of Arkansas, 1983, cited as the "City -County
Tourist Meeting and Entertainment Facilities Assistance Law,'
authorizes financial.assistance to auvlifvina cities and counties
for constructing and/or securing tourist and entertainment facili-
ties; and
WHEREAS, the General Assembly, in the enactment of said legis-
lation, found and determined that "it is in the interest of both
the State and its Cities and Counties for the State to assist any
City or County in financing tourist meeting facilities and tourist
entertainment facilities by paying to the City or County a portion
of the increased State Sales Tax revenues and State Income Tax
revenues attributable thereto as in this Act provided;" and
WHEREAS, the City has constructed in the said City "tourist
meeting facilities" being a convention center and has made ap,iro-
priate application to the State for financial assistance for said
facilities o-:1':.. •k;,;,riny at.3 ccnfcrm-n_a r:..+iaions of said
legislation; and
WHEREAS. the State, after notice and in keeping with all other
provisions of Act 763, Acts of Arkansas of 1977, as amended, in-
cluding Act 356, Acts of Arkansas, 1983, held a public hearing on
March 1, 1983 on the City's application and following such public
hearing made the following findings and determinations:
(a) That the coexist -.eeting facilities of and by tie City.
are eligible facilities and have been financed by the
f
EXHIBIT 'A'
Page 2 of 4
City through the issuance of Four Million and Four Hundred Seventy -
Five Thousand and 00/100 ($4,475,000.00) Dollars in Tourism Revenue
Bonds issued by the City under Act No. 380 of the Acts of Arkansas
of 1971, as amended; that the financing of such facilities through
a combination of the City's bonds and state assistance under Act
763, Acts of Arkansas of 1977, as amended, including Act 356, Acts
of Arkansas, 1983, is in the best interest of the City and the
State and the City's application should be approved.
(b) That the additional State Sales and Income Tax revenues
to be derived from the City's tourist meeting facilities is esti-
mated and projected and found to be $122,278.00 for the fiscal year
1983-1984 and $179,759.00 for the fiscal year 1984-1985.
(c) That the investment multiplier for computing additional
State Sales and Income Tax revenues is fixed at 4x.
(d) That the debt service requirements of the City for the
bonds issued to finance these facilities for the years 1982 through
2014 are set forth on page 3 of the City's application for state
and made a part hereof as though set out herein word for word.
(e) That the State assistance shall be two/thirds (2/3) of
the additional State Sales and Income Tax revenues herein estimated
and projected to be generated by the facilities annually, but in
no case shall such exceed eighty (80%) percent of the annual debt
service on the bonds issued to finance the facilities.
NOW, THEREFORE, THE PARTIES HERETO MUTUALLY AGREE AS FOLLOWS:
I.
The parties hereto mutually understand and agree that this
contract is made and entered into in keeping with and pursuant to
authority of Act 763, Acts of Arkansas of 1977, as amended, includ-
ing Act 356, Acts of Arkansas, 1983.
II.
The State hereby covenants and agrees to pay to the City for
debt services as reflected on page 3 of Exhibit 'A' attached
hereto on the City's :cr.ds tereinabcve desrr:ted issued to finance
,
EXHIBIT 'A"
Page 3 of 4
the tourist meeting facilities an amount equal to two-thirds 12/3)
of the additional State Sales and Income Tax revenues hereinabove
estimated and projected to be generated by said tourist facilities
as described in the City's application, but not more than eighty
(806) percent of the annual debt service requirements of said
bonds.
III.
The State hereby covenants and agrees that it will certify
to the State Treasurer the amount of assistance to be paid the
City which the State hereby agrees to be the sum of $81,519.00
for the fiscal year 1983-1984 and the sum of 5119,839.00 for fiscal
year 1984-1985 and directs the said Treasurer to make quarterly
payments to said City from the 'City -Counties Tourist Facilities
Aid Fund' established pursuant to the provisions of Act 763, Acts
of Arkansas of 1971, as amended, including Act 356, Acts of
Arkansas, i 3. It is understood by the parties that the City
will recertify, at the beginning of each two year term that this
Agreement is extended, if any, for the State's consideration and
determination, the additional State sales and income tax revenues
to be generated by said tourist meeting facilities of the City dur-
ing the ensuing term all for the purpose of computing the amount
of state assistance to be paid the City for said ensuing term.
Iv.
Payment of such assistance funds by the State shall be made
to the Trustee designated by the holder of the City's bonds
(First Bank 6 Trust Company of '.mountain Pomo, Arkansas or its
successor) and said Trustee shall apply all such funds received
from said City -county Tourist Facilities Aid Fund to the payment
of or redemption of said bonds of the City and to the payment of
interest thereon. City covenants that any remaining funds re-
ceived from the State after retirement of said bonds shall be
retur^ed fcrt'.w:th tc the State Treas:rer.
•
•
•
EXHIBIT 'A"
Page 4 of 4
V.
Payment of assistance funds as prcvided fcr herein is subject
to approval by and appropriation of the General Assembly of the
State of Arkansas and nothing herein contained shall.be construed
to be a demand of the General Assembly to make any appropriation
pursuant to Act 763, Acts of Arkansas of 1977, as amended, includ-
ing Act 356, Acts of Arkansas, 1983, or to prohibit the General
Assembly from amending or repealing the said Act at any time.
VI.
The term of this Agreement shall be for two (2) years commenc-
ing July 1, 1983, but subject to approval of the General Assembly,
will be extended from time -to -time for additional terms, which
additional terms shall not exceed two (2) years.
This Agreement may be executed in duplicate of counterparts,
each of which when so executed and delivered shall constitute an
nri., n.l. h"t all of which together shall constitute one and the
same Agreement.
THIS AGREEMENT executed in duplicate originals this 1st day
cf July, 1983.
ATTEST:
ATTEST:
,
I LL` -Lt l^ 1 Li.. _
City Clerk
J .
STATE BOARD CF FINANCE
R _10
CITY OFIFAYETTEVIIIII,)E, ARKANSASK
By: Acct. J1 ' //c -Cl! f:et
City of Fayetteville, Arkansas
and the Continuing Education Center
Estimated Tax Revenues to be Derived
For Fiscal Years July 1, 1995 - June 30, 1996 and
July 1, 1996 - June 30, 1997
CALCULATION:
Estimated number of delegates per year
Estimated spending per delegate per day
Average number of days per delegate
Multiplier
Tax factor
Estimated tax revenues per year
Estimated tax revenues per year
Allowable turnback per original contract
Allowable turnback assistance per year for
1995-1996 and 1996-1997
TURNBACK LIMIT:
Debt service requirements on City of Fayetteville
Continuing Education Center Bonds - 7101/95-W30;96
Limit per original contract
Limit on turnback assistance for 1995-1996
Debt service requirements on City of Fayetteville
Continuing Education Center Bonds - 7/01/96-6130/97
Limit per original contract
Limit on turnback assistance for 1996-1997
1C:tbcal
6,554
165.97
1,087,767
2.580
2,806,440
4
11,225, 759
0.0513
575,881
575,881
66.67%
383,940
429,831
80.00%
343.865
425,206
80.00%
340,165
City of Fayetteville, Arkansas
and the Continuing Education Center
Estimated Tax Revenues to be Derived
For Fiscal Years July 1, 1995 - June 30, 1996 :and
July 1, 1996 - June 30, 1997
CALCULATION BASES:
Estimated number of convention delegates per year -
Based on actual delegate count of 13,108 from
07/01/92 - 06/30/94
Estimated spending per delegate per day - Based
on a:survey conducted by the International
Association of Convention and Visitor Bureaus.
Adjusted by Cost of Living Index for
Fayetteville -Springdale Area for the
first quarter of 1994, produced by the
American Chamber of Commerce Researchers
Association.
Average number of days per delegate - Based on
actual delegate days 7/01/92 - 6/30/94 of 33,821
divided by number of delegates of 13,108
1C:tbcal
6,554
183.39
90.50%
165.97
2.580
Multiplier as in original agreement 4
Tax factor - supplied by the Little Rock
Convention Center .0513
•
•
CITY OF FAYETTEVILLE, ARKANSAS
CONVENTION CENTER DELEGATE & TURNBACK INFORMATION
Date
Year/Quarter
1990/1st
2nd
3rd
4th
1991/1st
2nd
3rd
4th
1992/1 st
2nd
3rd
4th
1993/1 st
2nd
3rd
4th
1994/15t
2nd
3rd
4th
# Delegate
Days
2,355
10,235
2.773
6.433
21,796
3,884
8,441
1,630
1,500
15,455
1,014
9,834
8,047
3,137
22,032
1,354
8,041
4,219
2,849
161463
3,408
2,766
1,886
8,060
# of
Delegates
1,003
2,789
857
3,643
8.292
2,209
2,723
599
705
6,236 $
910
1,950
2,345
1,368
6,573 $
707
2,199
2,139
1,194
6,239 $
2,041
1,115
796
3,952 $
Turnback
Funds
22, 722.78
63,184 29
42,807.59
99, 308.05
228,022.71
59,958.41
130,306.11
25,162.77
23,155.92
238,583.21
15,653.40
151,810.25
124,223.82
48,426.76
340,114.23
20,902.09
124,131.20
78, 399.45
52,941.47
276,374.21
63 329.07
51:399.12
35, 046.55
149„774.74
* The CEC Bonds are scheduled to be paid off October 1, 2004
\CECTURN
.NOU-03-1994 11:01
•
IACUB
2022967009 P. 03/03
•
Breakdown of.Delegate Expenditures
All Conventions
Type of Expenditure
Hotel Roos
Hotel Restaurants
Other Restaurants
Hospitality Suites
Admission to Shows
Recreation
Sporting Events
Sightseeing
Retail Stores
Local Transport
Auto Rental
Gasoline
Other
Total
Days Per Delegate = 3.48
Total
Expenditures
S294.16
77.25
7853
21.11
10.97
5.00
2.49
9.63
82.69
12.31
16.66
9.19
18.21
5638.20
Percent of Total
Table 2
Dally
Expenditures
384.53
22.20
22.57
6.07
3.15
1.44
0.72
2.77
23.76
3.54
4.79
2.64
5.21
X183.39
Hotel Rooms
Hotel Resuunnu 12.10%
OtherRnuunnu 1130%
Hospiulay Satree 3.31%
Admission to Show 1.72%
Reoea.icm 0.78%
Spotting Evens 0.39%
Sightseeing 131%
Revel Stores :2-96%
Local Transport 1.91%
Auto Renal 2.61%
Guoline 1 44%
Other 2.86%
0%
46.094.
20% 40% 60%
80% IOC%
10
�0—r,! P.03
4
Annual Subscription 5110
Single Issue Price $55
X
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a
Comparative Data for 298 Urban Areas
•
Section 1: Urban Area Index Data
Section 2: Average Prices
PRODUCED BY
N W
05� LI
Nr
U art W
< M •N
O.
N O
S <
FIRST OUARTER 1996
COST OF LIVING INDEX
N
HEALTH CARE
M N NO 0 O .O N 0 NPWN P NJ P J OJ KI A 'O M N M
• M N J p. - O M N J N P •'- M •- J O M .O 0 .O P ' J N CO CO
O P P P P 0 0 MI r r r r V O U 0 0 0 P 0 P CO 0' 0 U
•
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•O P O 0 CO O a- N J'P 0 0 P P CO P N M N•
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P .O PSN N•0 P 0 N A •- 03 N N
P P P P ^ r O P CI 0 0 n O m 03 co 0 N
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n N r CI or
A M 0 .O A 4C, N N A r
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•-62 O P YI P P P P NNMNJ 0 00 0 P 00 P Oj CO 10 N N
E- - r•- ... r r rr r rr r r r
LJ
INDEX WEIGHTS
-1
PT 4pc
< •
0
N
Op J
o •3 Q S n b N 4 T
2 <` <p<✓ < £<
< nl < 0 i N S J I<JI <3••••- 0
of S <S� i- -• LJ
< <_ • S C Of 6 J< C< 4,0 y L O 0 T
1 N J C 01 l E
r. n m m. .- E u. U m 4-010-0,-001C.;•-•
V
\ ee E •- 0 V.r O 0 m .- O 0 0
< Of m 0 0 O O O D S C S V
r (A IO 111
..S G 0 0 0 S
le -Rogers AR MSA
6
N
Q
Q up
to 6 £
X 6 N 4
O £
O u 6 Q
m 0 U
0
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V
✓ b L
N N an u -• A V 0 b
w 4 co V Q N m
N >.0 d C Z ..a ••••
V 4 V P
4 S u S 4 s' L _a 4 _N m C
4 alt 01 0 GC
C LJ C 0. 4 O R- IC ✓ 2 C U C J N
S Y Pe] t Y J Q 6 4 Y N V < O K ' Q 0. S 6
6 6 C.• 0 Q 6 • �Y zY ✓ 4 U' -al N 0
IC > 00 NIV J m - 6 J-•< C• V+ V Q
4 b'-- N Y C M 3 Q S N .` Y 0 •+ 0 0 b 0.J 0 0
b 0 a C4 at
0 Y N Q. > V N Q 0 .1-• J> .C.� 6IA S X V N CL ✓ ...✓ E 0
V ••- CO N m b
qO CO J••- Y ry=06C <OyO > — N aC:b O J .- 0 V C
O L D N L A OI X C 0 Y 0 00 Cu Y✓ E w m 4 b O
L L V V •r V V PI -V C Q q m V in AP b u_ b 0 0 C •'
O V - C $ > Y C 0 0 0 0 5 w > C < 0 O C
L C yE LL' b l V L V F ry QED L b ✓ 0✓ EE 0 b 9 O
VQC ][Y N OWNV EY u- O. >WL _IC Y0 JCN
C 0 • j -C 'F ] O 0 0 0 N
Q 2 O. T = .v J 2 CO N
CITY OF FAYETTEVILLE, ARKANSAS
SUMMARY OF BONDED INDEBTEDNESS
As of December 31, 1993
Year Number
1994 228-262
1995 263-300
1996 301-340
1997 341-384
1998 385-430
1999 431-480
2000 481-535
2001 536-595
2002 596-660
2003 661-730
2004 731-895
•
\bonddebt
CONTINUING EDUCATION CENTER REVENUE BONDS
Principal
October 1
175,000
190,000
200,000
220,000
230,000
250,000
275,000
300,000
325,000
350,000
825,000
$3,340,000
April 1
130,040
123,478
116,353
108,853
100,603
91,547
81,703
70,875
59,062
46,266
32,484
Interest
October 1
130,041
123,478
116,353
108,853
100,603
91,547
81,703
70,875
59,063
46,265
32,485
$961,264 $961,266
Total
435,081
436,956
432,706
437,706
431,206
433,094
438,406
441,750
443,125
442,531
889,969
$5,262,530
CITY OF FAYETTEVILLE, ARKANSAS
SUMMARY OF CONVENTION CENTER DELEGATE & TURNBACK INFORMATION
0
\CECTURN
Year
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
# Delegate
Days
16.477
12,353
21,445
20,579
29,372
29,124
21,796
15,455
22,032
16,463
11,962
19,733
# of
Delegates
10.611
6,561
7.349
6.696
9.088
9,651
8.292
6.236
6,573
6,239
5,668
7,542
Turnback
Funds
6240,390
148.638
166.490
151.697
205,887
218.642
228.023
238,583
340,114
276,374
222,284
$2,437,122
Note 1: Total delegate days and number of delegates is averaged.
Note 2: 1983 partial year information is excluded from the data above.
400
300
200
100
40
30
20
10
0
1984 1985 1986 1987 1988
1989 1990
1991 1992 1993 1994
--State Turnback Funds
F I
1984 1985 1986 1987 1988 1989 1990 1991
r Delegate Days
992 1993 1994