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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 W 0 Z Z -J 0 0 0 0 /Q 0 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 • J i •O P O 0 CO O a- N J'P 0 0 P P CO P N M N• P 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 ' M n N r CI or A M 0 .O A 4C, N N A r O pp.. • • • • • • o• 1 _ P} P • P P 0 P P M co A. . r .. r r m n • •W. .pQ• A' A m A In '0 P P r • L.7 • E 42 DI X W S •M- 00 IW- < pe u• u P r M 0. CI - CI M .O V. V M M V. 0M O O nr fto CO al N N O A NP O W A O M o NA NM in 0' 03 01 C> in P P 0 O A CO0I.n O m •MJ N 0 0J M O mi 0 N O M V -O P 0 O O n N PCI CO 0 PMI P A .'V Cp%>I IA•� CO 0. -JI Cl r JO M MA b VI MC! t‘ C) Va ID NMm�P PO P CI AM 7. M• A J .0 V N • P P lO N J A A O N. M V M 03 .- V {O V Cu O an Cr A o J N M P J A V A N M ArMO r r0 N 0 W'3 CO A VI V .0 .O O 0 P N '^" 0 00 O 0 PO P P P P 0 O w IP - 34 ~% O- A M m .0 A .O J P J P O 0 0 lirl e in CO CI A M N N 000 N 0 P 0 V N ARNP N•O in m ACI O P P W O in A •-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 bm LaC 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