HomeMy WebLinkAboutORDINANCE 6126�. C=
113 West Mountain Street !
Fayetteville, AR 72701
(479) 575-8323
Ordinance: 6126 c,)
..
File Number: 2018-0651
SALES AND USE TAX SPECIAL ELECTION:
AN ORDINANCE CALLING AND SETTING A DATE FOR A SPECIAL ELECTION _ON THE
QUESTIONS OF THE ISSUANCE BY THE CITY OF SALES AND USE TAX,, REFUNDING
BONDS AND SALES AND USE TAX CAPITAL IMPROVEMENT BONDS FOR VARIOUS
PURPOSES; LEVYING A REPLACEMENT SPECIAL LOCAL SALES AND USE TAX AT
THE RATE OF ONE PERCENT (1.00%) FOR THE PURPOSE OF RETIRING SUCH BONDS;
AND PRESCRIBING OTHER MATTERS PERTAINING THERETO
WHEREAS, Amendment 62 to the Constitution of the State of Arkansas ("Amendment 62") and
Title 14, Chapter 164, Subchapter 3 of the Arkansas Code of 1987 Annotated (the "Local
Government Bond Act") authorize the issuance of capital improvement bonds by municipalities, which
bonds may be secured by the pledge of all of the receipts of the special citywide sales and use tax
prescribed by the Local Government Bond Act; and
WHEREAS, pursuant to Amendment 62 and the Local Government Bond Act, the City of
Fayetteville, Arkansas (the "City") has previously issued and there are presently outstanding (i) its
Sales and Use Tax Capital Improvement Bonds, Series 2006A, in the aggregate principal amount of
$625,000 (the "Series 2006A Bonds"), (ii) its Sales and Use Tax Capital Improvement Bonds, Series
2007, in the aggregate principal amount of $3,645,000 (the "Series 2007 Bonds"), (iii) its Sales and
Use Tax Capital Improvement Bonds, Series 2009, in the aggregate principal amount of $985,000
(the "Series 2009 Bonds"), (iv) its Sales and Use Tax Capital Improvement Bonds, Series 2013, in the
aggregate principal amount of $11,695,000 (the "Series 2013 Bonds"), and (v) its Sales and Use Tax
Capital Improvement Bonds, Series 2015, in the aggregate principal amount of $3,480,000 (the
"Series 2015 Bonds") (collectively, the "Prior Bonds"); and
WHEREAS, the Prior Bonds are secured by and payable from the receipts of a combined one
percent (1.00%) special citywide sales and use tax previously levied under the authority of the Local
Government Bond Act (the "Prior Tax"); and
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WHEREAS, the City Council has determined that additional revenues can be obtained to finance
critical capital improvement needs by restructuring the City's existing indebtedness secured by sales
and use tax receipts through the refunding of the Prior Bonds; and
WHEREAS, if approved by the electors of the City, the City has determined to issue (i) its refunding
bonds in principal amount not to exceed $12,200,000 for the purpose of refunding the Prior Bonds,
(ii) its capital improvement bonds in principal amount not to exceed $73,925,000 for the purpose of
financing certain street improvements, (iii) its capital improvement bonds in principal amount not to
exceed $6,865,000 for the purpose of financing certain trail system improvements, (iv) its capital
improvement bonds in principal amount not to exceed $15,840,000 for the purpose of financing
certain drainage projects, (v) its capital improvement bonds in principal amount not to exceed
$26,405,000 for the purpose of financing certain regional park and other parks system improvements,
(vi) its capital improvement bonds in principal amount not to exceed $3,170,000 for the purpose of
financing certain economic development projects, (vii) its capital improvement bonds in principal
amount not to exceed $3,170,000 for the purpose of financing certain City building and grounds
renovations and energy efficiency projects, (viii) its capital improvement bonds in principal amount not
to exceed $31,685,000 for the purpose of financing certain cultural arts corridor improvements, (ix) its
capital improvement bonds in principal amount not to exceed $36,965,000 for the purpose of financing
certain police station construction and improvement and the acquisition of police equipment, and (x) its
capital improvement bonds in principal amount not to exceed $1.5,840,000 for the purpose of financing
certain fire station construction and the acquisition of firefighting vehicles and equipment (collectively,
the "Bonds"), which Bonds are to be secured by a pledge of and lien upon all of the receipts of a one
percent (1.00%) special citywide sales and use tax (the "Sales and Use Tax"), which Sales and Use _
Tax shall replace the existing combined one percent (1.00%) special citywide sales and use tax (the
"Prior Tax") securing the Prior Bonds, all as authorized by Amendment 62 and the Local Government
Bond Act; and
WHEREAS, the purpose of this Ordinance is to call a special election on the issuance of the Bonds
by the City and for related purposes;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Fayetteville,
Arkansas:
Section 1. That under the authority of Amendment 62 and the Local Government Bond Act and
subject to approval by the electors of the City of Question One and at least one of the other questions
set forth in Section 4 below, there are hereby levied (i) a sales tax at the rate of one percent (1.00%)
on the gross receipts from the sale at retail within the City of all items and services which are subject to
taxation under the Arkansas Gross Receipts Act of 1941, as amended (Arkansas Code of 1987
Annotated §26-52-101 et seq.), and (ii) an excise (or use) tax at the rate of one percent (1.00%) on
the storage, use, distribution or other consumption within the City of tangible personal property or
taxable services subject to taxation under the Arkansas Compensating Tax Act of 1949, as amended
(Arkansas Code of 1987 Annotated §26-53-101 et seq.), on the sale price of the property or, in the
case of leases or rentals, on the lease or rental price (collectively, the "Sales and Use Tax"). The Sales
and Use Tax shall be levied, and the net collections received after deduction of the administrative
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charges of the State of Arkansas and required rebates shall be utilized only for the payment of debt
service on those Bonds approved by the voters. The Sales and Use Tax shall be levied and collected
only on the gross receipts, gross proceeds or sales price in the maximum amount allowed from time to
time under Arkansas law, subject to rebates and limitation as required for certain "single transactions"
as from time to time required under Arkansas law. The levy and collection of the Sales and Use Tax
shall commence on and as of such date as provided in the Local Government Bond Act, and shall
cease upon retirement in full of those Bonds approved by the voters. Any collections of the Prior Tax
received after the issuance of the refunding bonds described in Question One (or any other excess
collections of the Prior Tax) shall be used to provide for the payment of debt service on those Bonds
approved by the voters.
Section 2. That under the authority of Amendment 62 and the Local Government Bond Act and
subject to approval by the electors of the City of both Question One and at least one of the other
questions set forth in Section 4 below, there is hereby authorized (1) the issuance of the City's
refunding bonds in the aggregate principal amount of not to exceed $12,200,000 for the purpose of
redeeming the outstanding Prior Bonds, (2) the issuance of the City's capital improvement bonds in
aggregate principal amount not to exceed $73,925,000 for the purpose of financing all or a portion of
the costs of certain street improvements described in Question Two under Section 4 below, (3) the
issuance of the City's capital improvement bonds in aggregate principal amount not to exceed
$6,865,000 for the purpose of financing all or a portion of the costs of certain trail improvements
described in Question Three under Section 4 below, (4) the issuance of the City's capital improvement
bonds in aggregate principal amount not to exceed $15,840,000 for the purpose of financing all or a
portion of the costs of certain drainage improvements described in in Question Four under Section 4
below, (5) the issuance of the City's capital improvement bonds in aggregate principal amount not to
exceed $26,405,000 for the purpose of financing all or a portion of the costs of certain regional park
and other parks system improvements described in Question Five under Section 4 below, (6) the
issuance of the City's capital improvement bonds in aggregate principal amount not to exceed
$3,170,000 for the purpose of financing all or a portion of the costs of certain economic development
projects described in Question Six under Section 4 below, (7) the issuance of the City's capital
improvement bonds in aggregate principal amount not to exceed $3,170,000 for the purpose of
financing all or a portion of the costs of certain City building and grounds renovations and
refurbishment described in Question Seven under Section 4 below, (8) the issuance of the City's
capital improvement bonds in aggregate principal amount not to exceed $31,685,000 for the purpose
of financing all or a portion of the costs of certain cultural arts corridor improvements described in
Question Eight under Section 4 below, (9) the issuance of the City's capital improvement bonds in
aggregate principal amount not to exceed $36,965,000 for the purpose of financing all or a portion of
the costs of certain police station improvements and equipment described in Question Nine under
Section 4 below, and (10) the issuance of the City's capital improvement bonds in aggregate principal
amount not to exceed $15,840,000 for the purpose of financing all or a portion of the costs of certain
fire station improvements and equipment described in Question Ten under Section 4 below. If
approved by the electors of the City, the aforementioned refunding bonds and capital improvement
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bonds (collectively, the "Bonds") may be issued in one or more series from time to time in an aggregate
principal amount not to exceed the respective principal amount(s) approved by the City's electors.
Any Bonds so issued shall be secured by a pledge of and a lien upon all of the receipts of the Sales
and Use Tax, as authorized by the Local Government Bond Act.
Section 3. That there be, and there is hereby called, a special election to be held on Tuesday, April -
9, 2019, at which election there shall be submitted to the electors of the City the questions of the
issuance of the Bonds.
Section 4. That the questions shall be placed on the ballot for the special election in substantially the
following forms:
SPECIAL ELECTION ON CITY SALES AND USE TAX LEVY AND BOND ISSUANCE
Upon approval of Question One at least one of the other Questions set forth below, and upon the
issuance of the Refunding Bonds (defined in Question One), the City's existing levy of a combined one
percent (1.00%) sales and use tax (the "Prior Tax") securing the Prior Bonds (defined in Question
One) shall cease and such tax will be replaced by the one percent (1.00%) Sales and Use Tax
(defined in Question One). Such Sales and Use Tax shall commence on and as of such date as
provided in Arkansas law and shall cease upon retirement of all of the approved bonds. Unless
Question One and at least one of the other Questions set forth below are approved, non_ e of the
bonds described below will be issued, the Sales and Use Tax will not be levied, and the Prior
Tax will remain in place until payment in full of the Prior Bonds.
The bonds described below that are approved may be combined into a single issue or may be issued in
series from time to time and may be issued on a tax-exempt or taxable basis. The net collections of the
Sales and Use Tax remaining after the State of Arkansas deducts its administrative charges will be
used solely to retire those bonds described below which are approved by the voters and obligations of
the City with respect thereto.
(Question One:
There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the
issuance of refunding bonds in principal amount not to exceed $12,200,000 (the "Refunding Bonds")
pursuant to Title 14, Chapter 164, Subchapter 3 of the Arkansas Code of 1987 Annotated (the
"Local Government Bond Act") for the purpose of refunding the City's outstanding (i) Sales and Use
Tax Capital Improvement Bonds, Series 2006A, (ii) Sales and Use Tax Capital Improvement Bonds,
Series 2007, (iii) Sales and Use Tax Capital Improvement Bonds, Series 2009, (iv) Sales and Use Tax
Capital Improvement Bonds, Series 2013, and (v) Sales and Use Tax Capital Improvement Bonds,
Series 2015 (collectively, the "Prior Bonds"). If the issuance of the Refunding Bonds is approved, the
Refunding Bonds shall be secured by a pledge of and lien upon all of the receipts of a special citywide
sales and use tax at the rate of one percent (1.00%) levied pursuant to the Local Government Bond
Act (the "Sales and Use Tax").
Vote on the question by placing an "X" in one of the squares following the question, either for or
against:
FOR the issuance of Refunding Bonds in principal amount not to exceed $12,200,000
..................................................................................❑
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AGAINST the issuance of Refunding Bonds in principal amount not to exceed $12,200,000
..................................................................................❑
Question Two:
There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the
issuance of capital improvement bonds in principal amount not to exceed $73,925,000 (the "Street
Improvement Bonds") pursuant to the Local Government Bond Act (as defined in Question One) for
the purpose of financing all or a portion of the costs of right-of-way acquisition, design, construction,
reconstruction, repair, resurfacing, straightening and width modification of certain City streets, which
may include related sidewalk, traffic signal and control, lighting, curbing, guttering, bicycle lane,
landscaping, drainage and safety improvements and related curbside pedestrian facilities such as bus
pickup structures and concrete waiting pads. If the issuance of the Street Improvement Bonds is
approved, the Street Improvement Bonds shall be secured by a pledge of and lien upon all of the
receipts of a special citywide sales and use tax at the rate of one percent (1.00%) levied pursuant to
the Local Government Bond Act (the "Sales and Use Tax").
Vote on the question by placing an "X" in one of the squares following the question, either for or
against:
FOR the issuance of Street Improvement Bonds in principal amount not to exceed $73,925,000
.............................................................................. ❑
AGAINST the issuance of Street Improvement Bonds in principal amount not to exceed
$73,925,000........................................................................ ❑
Question Three:
There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the
issuance of capital improvement bonds in principal amount not to exceed $6,865,000 (the "Trail
Improvement Bonds") pursuant to the Local Government Bond Act (as defined in Question One) for
the purpose of financing all or a portion of the costs of design, construction, reconstruction, extension
and equipping of certain City trail system improvements, which may include related pedestrian signal,
lighting, landscaping, drainage and safety improvements and right-of-way acquisition. If the issuance of
the Trail Improvement Bonds is approved, the Trail Improvement Bonds shall be secured by a pledge
of and lien upon all of the receipts of a special citywide sales and use tax at the rate of one percent
(1.00%) levied pursuant to the Local Government Bond Act (the "Sales and Use Tax").
Vote on the question by placing an "X" in one of the squares following the question, either for or
against:
FOR the issuance of Trail Improvement Bonds in principal amount not to exceed $6,865,000
................................................................................❑
AGAINST the issuance of Trail Improvement Bonds in principal amount not to exceed $6,865,000
........................................................................❑
Question Four:
There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the
issuance of capital improvement bonds in principal amount not to exceed $15,840,000 (the "Drainage
Improvement Bonds") pursuant to the Local Government Bond Act (as defined in Question One) for
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the purpose of financing all or a portion of the costs of the design, construction, reconstruction, repair,
retrofit, extension, enlargement and equipping of certain drainage facilities, which may include land and
easement acquisition and water quality features such as detention and retention basins and stream
restoration. If the issuance of the Drainage Improvement Bonds is approved, the Drainage
Improvement Bonds shall be secured by a pledge of and lien upon all of the receipts of a special
citywide sales and use tax at the rate of one percent (1.00%) levied pursuant to the Local Government
Bond Act (the "Sales and Use Tax").
Vote on the question by placing an "X" in one of the squares following the question, either for or
against:
FOR the issuance of Drainage Improvement Bonds in principal amount not ''to exceed
$15,840,000...................................................................... ❑ -
AGAINST the issuance of Drainage Improvement Bonds in principal amount not to exceed
$15,840,000.................................................................... ❑
Question Five:
There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the
issuance of capital improvement bonds in principal amount not to exceed $26,405,000 (the "Park
Improvement Bonds") pursuant to the Local Government Bond Act (as defined in Question One) for
the purpose of financing all or a portion of the costs of acquisition, design, construction and equipping
of certain regional park and other parks system improvements, which may include athletic fields and
facilities, playgrounds, pools and splash pads, trails, campgrounds, picnic areas and pavilions, land
acquisition, open space preservation and other recreational facilities and support facilities, such as
restrooms and parking. If the issuance of the Park Improvement Bonds is approved, the Park
Improvement Bonds shall be secured by a pledge of and lien upon all of the receipts of a special
citywide sales and use tax at the rate of one percent (1.00%) levied pursuant to the Local Government
Bond Act (the "Sales and Use Tax").
Vote on the question by placing an "X" in one of the squares following the question, either for or
against:
FOR the issuance of Park Improvement Bonds in principal amount not to exceed
$26,405,000............................................................................... ❑
AGAINST the issuance of Park Improvement Bonds in principal amount not to exceed
$26,405,000...................................................................... ❑
Question Six: -
There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the
issuance of capital improvement bonds in principal amount not to exceed $3,170,000 (the "Economic
Development Project Bonds") pursuant to the Local Government Bond Act (as defined in Question
One) for the purpose of financing all or a portion of the costs of acquisition, design, construction and ..
equipping of certain economic development projects, which may include land acquisition, site
development and infrastructure useful in the development, retention or expansion of manufacturing,
production and industrial facilities, research, technology and development facilities, distribution centers,
call centers, warehouse facilities, job training facilities or regional or national corporate headquarters
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facilities. If the issuance of the Economic Development Project Bonds is approved, the Economic
Development Project Bonds shall be secured by a pledge of and lien upon all of the receipts of a
special citywide sales and use tax at the rate of one percent (1.00%) levied pursuant to the Local
Government Bond Act (the "Sales and Use Tax").
Vote on the question by placing an "X" in one of the squares following the question, either for or
against:
FOR the issuance of Economic Development Project Bonds in principal amount not to exceed
$3,170,000.................................................................. ❑
AGAINST the issuance of Economic Development Project Bonds in principal amount not to exceed
$3,170,000........................................................ ❑
Question Seven:
There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the
issuance of capital improvement bonds in principal amount not to exceed $3,170,000 (the "City
Facilities Improvement Bonds") pursuant to the Local Government Bond Act (as defined in Question
One) for the purpose of financing all or a portion of the costs of renovating and refurbishing certain
City buildings and grounds, which may include building envelope and roof improvements, window
replacement, insulation, lighting and HVAC system upgrades and certain renewable energy and energy
efficiency projects. If the issuance of the City Facilities Improvement Bonds is approved, the City
Facilities Improvement Bonds shall be secured by a pledge of and lien upon all of the receipts of a
special citywide sales and use tax at the rate of one percent (1.00%) levied pursuant to the Local _
Government Bond Act (the "Sales and Use Tax").
Vote on the question by placing an "X" in one of the squares following the question, either for or
against:
FOR the issuance of City Facilities Improvement Bonds in principal amount not to exceed
$3,170,000...................................................................... ❑
AGAINST the issuance of City Facilities Improvement Bonds in principal amount not to exceed
$3,170,000.................................................................. ❑
Question Eight:
There is submitted to the qualified electors of the City of Fayetteville, Arkansas (the "City"), the
question of the issuance of capital improvement bonds in principal amount not to exceed $31,685,000
(the "Arts Corridor Improvement Bonds") pursuant to the Local Government Bond Act (as defined in
Question One) for the purpose of financing all or a portion of the costs of acquisition, design,
construction and equipping of certain Cultural Arts Corridor improvements, within or near an area
bordered by Dickson Street on the north, School Avenue on the east, Prairie Street on the south, and
Gregg Avenue on the west, and which may include street, sidewalk, boardwalk, trail, pedestrian signal
and control, bicycle facilities, curbing, guttering, drainage, lighting and landscaping improvements,
plaza, civic and performance space, art installations, overlooks, stream restoration, pavilions, structure
and other buildings, new and/or replacement parking facilities, and land and easement acquisition. Prior
to the removal or loss of twenty-five (25) or more public parking spaces from the Walton Arts Center
Parking Lot, a/k/a West Avenue Parking Lot, due to any development of or construction on such lot
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File Number 2018-0651 _
related to the Cultural Arts Corridor, the City must ensure the availability of sufficient net new public
parking spaces to fully replace all public parking spaces removed, lost or likely to be removed or lost
within the near future from the Walton Arts Center Parking Lot and not planned to be promptly
replaced below, upon or above the current parking area. These replacement public parking spaces
must be within reasonable proximity to the Walton Arts Center which would include any public parking
deck spaces at the City's School Avenue Parking Lot or on the currently privately owned land north of
Dickson Street, west of West Avenue, east of the railroad tracks and south of Lafayette or on any
other parking lot or facility in which all replacement parking spaces are within one thousand (1,000)
feet of the Walton Arts Center's west public entrance. If the issuance of the Arts Corridor
Improvement Bonds is approved, the Arts Corridor Improvement Bonds shall be secured by a pledge
of and lien upon all of the receipts of a special citywide sales and use tax at the rate of one percent
(1.00°/x) levied pursuant to the Local Government Bond Act (the "Sales and Use Tax").
Vote on the question by placing an "X" in one of the squares following the question, either for or
against:
FOR the issuance of Arts Corridor Improvement Bonds in principal amount not to exceed
$31,685,000......................................................................❑
AGAINST the issuance of Arts Corridor Improvement Bonds in principal amount not to exceed
$31,685,000............................................................... ❑
Question Nine:
There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the
issuance of capital improvement bonds in principal amount not to exceed $36,965,000 (the "Police
Facilities Improvement Bonds") pursuant to the Local Government Bond Act (as defined in Question
One) for the purpose of financing all or a portion of the costs of certain police station design,
construction and improvements, which may include land acquisition, and the acquisition of police
equipment. If the issuance of the Police Facilities Improvement Bonds is approved, the Police Facilities _
Improvement Bonds shall be secured by a pledge of and lien upon all of the receipts of a special
citywide sales and use tax at the rate of one percent (1.00%) levied pursuant to the Local Government
Bond Act (the "Sales and Use Tax").
Vote on the question by placing an "X" in one of the squares following the question, either for or
against:
FOR the issuance of Police Facilities Improvement Bonds in principal amount not to exceed
$36,965,000 .................................................................... ❑
AGAINST the issuance of Police Facilities Improvement Bonds in principal amount not to exceed
$36,965,000...................................................... ❑
Question Ten:
There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the
issuance of capital improvement bonds in principal amount not to exceed $15,840,000 (the -
"Firefighting Facilities Improvement Bonds") pursuant to the Local Government Bond Act (as defined
in Question One) for the purpose of financing all or a portion of the costs of certain fire station design
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File Number. 2018-0651
and construction, which may include land acquisition, and the acquisition of firefighting vehicles and
equipment. If the issuance of the Firefighting Facilities Improvement Bonds is approved, the
Firefighting Facilities Improvement Bonds shall be secured by a pledge of and lien upon all of the
receipts of a special citywide sales and use tax at the rate of one percent (1.00%) levied pursuant to
the Local Government Bond Act (the "Sales and Use Tax").
Vote on the question by placing an "X" in one of the squares following the question, either for or
against:
FOR the issuance of Firefighting Facilities Improvement Bonds in principal amount not to exceed
$15,840,000 ..................................................... ❑
AGAINST the issuance of Firefighting Facilities Improvement Bonds in principal amount not to exceed
$15,840,000...................................................... ❑
Section 5. 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 Arkansas municipal elections unless
otherwise provided in the Local Government Bond Act, and only qualified voters of the City shall have
the right to vote at the election. The City Clerk is hereby directed to give notice of the special election
by one advertisement in a newspaper of general circulation within the City, the publication to be not
less than ten (10) days prior to the date of the election.
Section 6. That a copy of this Ordinance shall be given to the Washington County Board of Election
Commissioners at least sixty (60) days prior to the date of the special election so that the necessary
election officials and supplies may be provided. A certified copy of this Ordinance shall also be
provided to the Director of the Department of Finance and Administration and to the Treasurer of the
State of Arkansas as soon as practical.
Section 7. That the results of the special election shall be proclaimed by the Mayor, and his
proclamation shall be published one time in a newspaper of general circulation within the City. The
proclamation shall advise that the results as proclaimed shall be conclusive unless attacked in the
Circuit Court of Washington County within thirty (30) days after the date of publication of the
proclamation.
Section 8. That the Mayor and the City Clerk, for and on behalf of the City, be, and they hereby are
authorized and directed to do any and all things necessary to call and hold the special election as herein
provided and, if the issuance of the Refunding Bonds and any of the other capital improvement bonds
described herein are approved by the electors, to cause the Sales and Use Tax to be collected in
accordance with the Local Government Bond Act, and to perform all acts of whatever nature
necessary to carry out the authority conferred by this Ordinance.
Section 9. That the City considers this Ordinance to be its declaration of official intent to issue the
Bonds and to make reimbursement to the City with a portion of the proceeds thereof for all original
expenditures incurred by the City in acquiring, constructing or equipping any of the projects described
herein between the date that is sixty (60) days prior to the date of this Ordinance and the date a series
of Bonds is issued, plus a de minimis amount and preliminary expenditures, as such terms are defined
in Section 1.150-2(f) of the Federal Income Tax Regulations.
Section 10. That Kutak Rock LLP is hereby engaged as Bond Counsel and Stephens Inc. is
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File Number 2018-0651
hereby engaged as Underwriter with respect to the issuance of the Bonds. The fees and expenses of
Bond Counsel and the Underwriter shall be a cost of issuance of the Bonds to be paid with Bond
proceeds.
Section 11. That the provisions of this Ordinance are hereby declared to be separable and if any
provision shall for any reason be held illegal or invalid, such holding shall not affect the validity of the
remainder of this Ordinance.
Section 12. That all ordinances and parts thereof in conflict herewith are hereby repealed to the
extent of such conflict.
PASSED and APPROVED on 12/18/2018
Attest:
Sondra E. Smith, City Clerk�"i,
Treasurer .`�C�. •G�-TY 0' .s '
FAYETTEVILLE;�;
'. •;Q
'';;X37ONti
Page 10 Printed on 12121118
City of Fayetteville, Arkansas 113 West Mountain Street
K-:- Fayetteville, AR 72701
' (479) 575-8323
f Text File
File Number: 2018-0651
Agenda Date: 12/18/2018 Version: 1 Status: Passed
In Control: City Council Meeting File Type: Ordinance
Agenda Number: B. 1
SALES AND USE TAX SPECIAL ELECTION:
AN ORDINANCE CALLING AND SETTING A
DATE FOR A
SPECIAL
ELECTION ON THE
QUESTIONS OF THE ISSUANCE BY THE CITY
OF SALES AND
USE TAX
REFUNDING BONDS
AND SALES AND USE TAX CAPITAL IMPROVEMENT BONDS FOR VARIOUS PURPOSES;
LEVYING A REPLACEMENT SPECIAL LOCAL
SALES AND USE
TAX AT
THE RATE OF ONE
PERCENT (1.00%) FOR THE PURPOSE OF
RETIRING SUCH
BONDS;
AND PRESCRIBING
OTHER MATTERS PERTAINING THERETO
WHEREAS, Amendment 62 to the Constitution of the State of Arkansas ("Amendment 62") and Title 14,
Chapter 164, Subchapter 3 of the Arkansas Code of 1987 Annotated (the "Local Government Bond Act")
authorize the issuance of capital improvement bonds by municipalities, which bonds may be secured by the
pledge of all of the receipts of the special citywide sales and use tax prescribed by the Local Government Bond
Act; and
WHEREAS, pursuant to Amendment 62 and the Local Government Bond Act, the City of Fayetteville,
Arkansas (the "City") has previously issued and there are presently outstanding (i) its Sales and Use Tax
Capital Improvement Bonds, Series 2006A, in the aggregate principal amount of $625,000 (the "Series 2006A
Bonds"), (ii) its Sales and Use Tax Capital Improvement Bonds, Series 2007, in the aggregate principal amount
of $3,645,000 (the "Series 2007 Bonds"), (iii) its Sales and Use Tax Capital Improvement Bonds, Series
2009, in the aggregate principal amount of $985,000 (the "Series 2009 Bonds"), (iv) its Sales and Use Tax
Capital Improvement Bonds, Series 2013, in the aggregate principal amount of $11,695,000 (the "Series 2013
Bonds"), and (v) its Sales and Use Tax Capital Improvement Bonds, Series 2015, in the aggregate principal
amount of $3,480,000 (the "Series 2015 Bonds") (collectively, the "Prior Bonds"); and
WHEREAS, the Prior Bonds are secured by and payable from the receipts of a combined one percent
(1.00%) special citywide sales and use tax previously levied under the authority of the Local Government Bond
Act (the "Prior Tax"); and
WHEREAS, the City Council has determined that additional revenues can be obtained to finance critical
capital improvement needs by restructuring the City's existing indebtedness secured by sales and use tax
receipts through the refunding of the Prior Bonds; and
WHEREAS, if approved by the electors of the City, the City has determined to issue (i) its refunding bonds in
principal amount not to exceed $12,200,000 for the purpose of refunding the Prior Bonds, (ii) its capital
improvement bonds in principal amount not to exceed $73,925,000 for the purpose of financing certain street
improvements, (iii) its capital improvement bonds in principal amount not to exceed $6,865,000 for the purpose
of financing certain trail system improvements, (iv) its capital improvement bonds in principal amount not to
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exceed $15,840,000 for the purpose of financing certain drainage projects, (v) its capital improvement bonds in
principal amount not to exceed $26,405,000 for the purpose of financing certain regional park and other parks
system improvements, (vi) its capital improvement bonds in principal amount not to exceed $3,170,000 for the
purpose of financing certain economic development projects, (vii) its capital improvement bonds in principal
amount not to exceed $3,170,000 for the purpose of financing certain City building and grounds renovations
and energy efficiency projects, (viii) its capital improvement bonds in principal amount not to exceed
$31,685,000 for the purpose of financing certain cultural arts corridor improvements, (ix) its capital
improvement bonds in principal amount not to exceed $36,965,000 for the purpose of financing certain police
station construction and improvement and the acquisition of police equipment, and (x) its capital improvement
bonds in principal amount not to exceed $15,840,000 for the purpose of financing certain fire station
construction and the acquisition of firefighting vehicles and equipment (collectively, the "Bonds"), which Bonds
are to be secured by a pledge of and lien upon all of the receipts of a one percent (1.00%) special citywide
sales and use tax (the "Sales and Use Tax"), which Sales and Use Tax shall replace the existing combined one
percent (1.00%) special citywide sales and use tax (the "Prior Tax") securing the Prior Bonds, all as authorized
by Amendment 62 and the Local Government Bond Act; and
WHEREAS, the purpose of this Ordinance is to call a special election on the issuance of the Bonds by the
City and for related purposes;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Fayetteville, Arkansas:
Section 1. That under the authority of Amendment 62 and the Local Government Bond Act and subject to
approval by the electors of the City of Question One and at least one of the other questions set forth in Section
4 below, there are hereby levied (i) a sales tax at the rate of one percent (1.00%) on the gross receipts from the
sale at retail within the City of all items and services which are subject to taxation under the Arkansas Gross
Receipts Act of 1941, as amended (Arkansas Code of 1987 Annotated §26-52-101 et seg.), and (ii) an
excise (or use) tax at the rate of one percent (1.00%) on the storage, use, distribution or other consumption
within the City of tangible personal property or taxable services subject to taxation under the Arkansas
Compensating Tax Act of 1949, as amended (Arkansas Code of 1987 Annotated §26-53-101 et seq.), on the
sale price of the property or, in the case of leases or rentals, on the lease or rental price (collectively, the "Sales
and Use Tax"). The Sales and Use Tax shall be levied, and the net collections received after deduction of the
administrative charges of the State of Arkansas and required rebates shall be utilized only for the payment of
debt service on those Bonds approved by the voters. The Sales and Use Tax shall be levied and collected only
on the gross receipts, gross proceeds or sales price in the maximum amount allowed from time to time under
Arkansas law, subject to rebates and limitation as required for certain "single transactions" as from time to time
required under Arkansas law. The levy and collection of the Sales and Use Tax shall commence on and as of
such date as provided in the Local Government Bond Act, and shall cease upon retirement in full of those
Bonds approved by the voters. Any collections of the Prior Tax received after the issuance of the refunding
bonds described in Question One (or any other excess collections of the Prior Tax) shall be used to provide for
the payment of debt service on those Bonds approved by the voters.
Section 2. That under the authority of Amendment 62 and the Local Government Bond Act and subject to
approval by the electors of the City of both Question One and at least one of the other questions set forth in
Section 4 below, there is hereby authorized (1) the issuance of the City's refunding bonds in the aggregate
principal amount of not to exceed $12,200,000 for the purpose of redeeming the outstanding Prior Bonds, (2)
the issuance of the City's capital improvement bonds in aggregate principal amount not to exceed $73,925,000
for the purpose of financing all or a portion of the costs of certain street improvements described in Question
Two under Section 4 below, (3) the issuance of the City's capital improvement bonds in aggregate principal
amount not to exceed $6,865,000 for the purpose of financing all or a portion of the costs of certain trail
City of Fayetteville, Arkansas Paye 2 Printed on 1211912018
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improvements described in Question Three under Section 4 below, (4) the issuance of the City's capital
improvement bonds in aggregate principal amount not to exceed $15,840,000 for the purpose of financing all
or a portion of the costs of certain drainage improvements described in in Question Four under Section 4
below, (5) the issuance of the City's capital improvement bonds in aggregate principal amount not to exceed
$26,405,000 for the purpose of financing all or a portion of the costs of certain regional park and other parks
system improvements described in Question Five under Section 4 below, (6) the issuance of the City's capital
improvement bonds in aggregate principal amount not to exceed $3,170,000 for the purpose of financing all or
a portion of the costs of certain economic development projects described in Question Six under Section 4
below, (7) the issuance of the City's capital improvement bonds in aggregate principal amount not to exceed
$3,170,000 for the purpose of financing all or a portion of the costs of certain City building and grounds
renovations and refurbishment described in Question Seven under Section 4 below, (8) the issuance of the
City's capital improvement bonds in aggregate principal amount not to exceed $31,685,000 for the purpose of
financing all or a portion of the costs of certain cultural arts corridor improvements described in Question Eight
under Section 4 below, (9) the issuance of the City's capital improvement bonds in aggregate principal amount
not to exceed $36,965,000 for the purpose of financing all or a portion of the costs of certain police station
improvements and equipment described in Question Nine under Section 4 below, and (10) the issuance of the
City's capital improvement bonds in aggregate principal amount not to exceed $15,840,000 for the purpose of
financing all or a portion of the costs of certain fire station improvements and equipment described in Question
Ten under Section 4 below. If approved by the electors of the City, the aforementioned refunding bonds and
capital improvement bonds (collectively, the "Bonds") may be issued in one or more series from time to time in
an aggregate principal amount not to exceed the respective principal amount(s) approved by the City's electors.
Any Bonds so issued shall be secured by a pledge of and a lien upon all of the receipts of the Sales and Use
Tax, as authorized by the Local Government Bond Act.
Section 3. That there be, and there is hereby called, a special election to be held on Tuesday, April 9, 2019,
at which election there shall be submitted to the electors of the City the questions of the issuance of the Bonds.
Section 4. That the questions shall be placed on the ballot for the special election in substantially the following
forms:
SPECIAL ELECTION ON CITY SALES AND USE TAX LEVY AND BOND ISSUANCE
Upon approval of Question One at least one of the other Questions set forth below, and upon the issuance of
the Refunding Bonds (defined in Question One), the City's existing levy of a combined one percent (1.00%)
sales and use tax (the "Prior Tax") securing the Prior Bonds (defined in Question One) shall cease and such tax
will be replaced by the one percent (1.00%) Sales and Use Tax (defined in Question One). Such Sales and
Use Tax shall commence on and as of such date as provided in Arkansas law and shall cease upon retirement
of all of the approved bonds. Unless Question One and at least one of the other Questions set forth below
are approved, none of the bonds described below will be issued, the Sales and Use Tax will not be
levied, and the Prior- Tax will remain in place until payment in full of the Prior Bonds.
The bonds described below that are approved may be combined into a single issue or may be issued in series
from time to time and may be issued on a tax-exempt or taxable basis. The net collections of the Sales and Use
Tax remaining after the State of Arkansas deducts its administrative charges will be used solely to retire those
bonds described below which are approved by the voters and obligations of the City with respect thereto.
Question One:
There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of
refunding bonds in principal amount not to exceed $12,200,000 (the "Refunding Bonds") pursuant to Title 14,
Chapter 164, Subchapter 3 of the Arkansas Code of 1987 Annotated (the "Local Government Bond Act") for
the purpose of refunding the City's outstanding (i) Sales and Use Tax Capital Improvement Bonds, Series
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2006A, (ii) Sales and Use Tax Capital Improvement Bonds, Series 2007, (iii) Sales and Use Tax Capital
Improvement Bonds, Series 2009, (iv) Sales and Use Tax Capital Improvement Bonds, Series 2013, and (v)
Sales and Use Tax Capital Improvement Bonds, Series 2015 (collectively, the "Prior Bonds"). If the issuance
of the Refunding Bonds is approved, the Refunding Bonds shall be secured by a pledge of and lien upon all of
the receipts of a special citywide sales and use tax at the rate of one percent (1.00%) levied pursuant to the
Local Government Bond Act (the "Sales and Use Tax").
Vote on the question by placing an "X" in one of the squares following the question, either for or against:
FOR the issuance of Refunding Bonds in principal amount not to exceed $12,200,000
..................................................................................❑
AGAINST the issuance of Refunding Bonds in principal amount not to exceed $12,200,000
..................................................................................❑
Question Two:
There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of
capital improvement bonds in principal amount not to exceed $73,925,000 (the "Street Improvement Bonds")
pursuant to the Local Government Bond Act (as defined in Question One) for the purpose of financing all or a
portion of the costs of right-of-way acquisition, design, construction, reconstruction, repair, resurfacing,
straightening and width modification of certain City streets, which may include related sidewalk, traffic signal
and control, lighting, curbing, guttering, bicycle lane, landscaping, drainage and safety improvements and related
curbside pedestrian facilities such as bus pickup structures and concrete waiting pads. If the issuance of the
Street Improvement Bonds is approved, the Street Improvement Bonds shall be secured by a pledge of and
lien upon all of the receipts of a special citywide sales and use tax at the rate of one percent (1.00%) levied
pursuant to the Local Government Bond Act (the "Sales and Use Tax").
Vote on the question by placing an "X" in one of the squares following the question, either for or against:
FOR the issuance of Street Improvement Bonds in principal amount not to exceed $73,925,000
..............................................................................❑
AGAINST the issuance of Street Improvement Bonds in principal amount not to exceed
$73,925,000........................................................................ ❑
Question Three:
There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of
capital improvement bonds in principal amount not to exceed $6,865,000 (the "Trail Improvement Bonds")
pursuant to the Local Government Bond Act (as defined in Question One) for the purpose of financing all or a
portion of the costs of design, construction, reconstruction, extension and equipping of certain City trail system
improvements, which may include related pedestrian signal, lighting, landscaping, drainage and safety
improvements and right-of-way acquisition. If the issuance of the Trail Improvement Bonds is approved, the
Trail Improvement Bonds shall be secured by a pledge of and lien upon all of the receipts of a special citywide
sales and use tax at the rate of one percent (1.00%) levied pursuant to the Local Government Bond Act (the
"Sales and Use Tax").
Vote on the question by placing an "X" in one of the squares following the question, either for or against:
FOR the issuance of Trail Improvement Bonds in principal amount not to exceed $6,865,000
................................................................................❑
AGAINST the issuance of Trail Improvement Bonds in principal amount not to exceed $6,865,000
........................................................................❑
Question Four:
There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of
capital improvement bonds in principal amount not to exceed $15,840,000 (the "Drainage Improvement
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Bonds") pursuant to the Local Government Bond Act (as defined in Question One) for the purpose of financing
all or a portion of the costs of the design, construction, reconstruction, repair, retrofit, extension, enlargement
and equipping of certain drainage facilities, which may include land and easement acquisition and water quality
features such as detention and retention basins and stream restoration. If the issuance of the Drainage
Improvement Bonds is approved, the Drainage Improvement Bonds shall be secured by a pledge of and lien
upon all of the receipts of a special citywide sales and use tax at the rate of one percent (1.00%) levied
pursuant to the Local Government Bond Act (the "Sales and Use Tax").
Vote on the question by placing an "X" in one of the squares following the question, either for or against:
FOR the issuance of Drainage Improvement Bonds in principal amount not to exceed
$15,840,000...................................................................... ❑
AGAINST the issuance of Drainage Improvement Bonds in principal amount not to exceed
$15,840,000.................................................................... ❑
Question Five:
There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of
capital improvement bonds in principal amount not to exceed $26,405,000 (the "Park Improvement Bonds")
pursuant to the Local Government Bond Act (as defined in Question One) for the purpose of financing all or a
portion of the costs of acquisition, design, construction and equipping of certain regional park and other parks
system improvements, which may include athletic fields and facilities, playgrounds, pools and splash pads, trails,
campgrounds, picnic areas and pavilions, land acquisition, open space preservation and other recreational
facilities and support facilities, such as restrooms and parking. If the issuance of the Park Improvement Bonds
is approved, the Park Improvement Bonds shall be secured by a pledge of and lien upon all of the receipts of a
special citywide sales and use tax at the rate of one percent (1.00%) levied pursuant to the Local Government
Bond Act (the "Sales and Use Tax").
Vote on the question by placing an "X" in one of the squares following the question, either for or against:
FOR the issuance of Park Improvement Bonds in principal amount not to exceed
$26,405,000............................................................................... ❑
AGAINST the issuance of Park Improvement Bonds in principal amount not to exceed
$26,405,000...................................................................... ❑
Question Six:
There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of
capital improvement bonds in principal amount not to exceed $3,170,000 (the "Economic Development
Project Bonds") pursuant to the Local Government Bond Act (as defined in Question One) for the purpose of
financing all or a portion of the costs of acquisition, design, construction and equipping of certain economic
development projects, which may include land acquisition, site development and infrastructure useful in the
development, retention or expansion of manufacturing, production and industrial facilities, research, technology
and development facilities, distribution centers, call centers, warehouse facilities, job training facilities or regional
or national corporate headquarters facilities. If the issuance of the Economic Development Project Bonds is
approved, the Economic Development Project Bonds shall be secured by a pledge of and lien upon all of the
receipts of a special citywide sales and use tax at the rate of one percent (1.00%) levied pursuant to the Local
Government Bond Act (the "Sales and Use Tax").
Vote on the question by placing an "X" in one of the squares following the question, either for or against:
FOR the issuance of Economic Development Project Bonds in principal amount not to exceed
$3,170,000.................................................................. ❑
AGAINST the issuance of Economic Development Project Bonds in principal amount not to exceed
$3,170,000........................................................ ❑
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Question Seven:
There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of
capital improvement bonds in principal amount not to exceed $3,170,000 (the "City Facilities Improvement
Bonds") pursuant to the Local Government Bond Act (as defined in Question One) for the purpose of financing
all or a portion of the costs of renovating and refurbishing certain City buildings and grounds, which may include
building envelope and roof improvements, window replacement, insulation, lighting and HVAC system
upgrades and certain renewable energy and energy efficiency projects. If the issuance of the City Facilities
Improvement Bonds is approved, the City Facilities Improvement Bonds shall be secured by a pledge of and
lien upon all of the receipts of a special citywide sales and use tax at the rate of one percent (1.00%) levied
pursuant to the Local Government Bond Act (the "Sales and Use Tax").
Vote on the question by placing an "X" in one of the squares following the question, either for or against:
FOR the issuance of City Facilities Improvement Bonds in principal amount not to exceed
$3,170,000...................................................................... ❑
AGAINST the issuance of City Facilities Improvement Bonds in principal amount not to exceed
$3,170,000.................................................................. ❑
Question Eieht:
There is submitted to the qualified electors of the City of Fayetteville, Arkansas (the "City"), the question of the
issuance of capital improvement bonds in principal amount not to exceed $31,685,000 (the "Arts Corridor
Improvement Bonds") pursuant to the Local Government Bond Act (as defined in Question One) for the
purpose of financing all or a portion of the costs of acquisition, design, construction and equipping of certain
Cultural Arts Corridor improvements, within or near an area bordered by Dickson Street on the north, School
Avenue on the east, Prairie Street on the south, and Gregg Avenue on the west, and which may include street,
sidewalk, boardwalk, trail, pedestrian signal and control, bicycle facilities, curbing, guttering, drainage, lighting
and landscaping improvements, plaza, civic and performance space, art installations, overlooks, stream
restoration, pavilions, structure and other buildings, new and/or replacement parking facilities, and land and
easement acquisition. Prior to the removal or loss of twenty-five (25) or more public parking spaces from the
Walton Arts Center Parking Lot, a/k/a West Avenue Parking Lot, due to any development of or construction
on such lot related to the Cultural Arts Corridor, the City must ensure the availability of sufficient net new public
parking spaces to fully replace all public parking spaces removed, lost or likely to be removed or lost within the
near future from the Walton Arts Center Parking Lot and not planned to be promptly replaced below, upon or
above the current parking area. These replacement public parking spaces must be within reasonable proximity
to the Walton Arts Center which would include any public parking deck spaces at the City's School Avenue
Parking Lot or on the currently privately owned land north of Dickson Street, west of West Avenue, east of the
railroad tracks and south of Lafayette or on any other parking lot or facility in which all replacement parking
spaces are within one thousand (1,000) feet of the Walton Arts Center's west public entrance. If the issuance
of the Arts Corridor Improvement Bonds is approved, the Arts Corridor Improvement Bonds shall be secured
by a pledge of and lien upon all of the receipts of a special citywide sales and use tax at the rate of one percent
(1.00%) levied pursuant to the Local Government Bond Act (the "Sales and Use Tax").
Vote on the question by placing an "X" in one of the squares following the question, either for or against:
FOR the issuance of Arts Corridor Improvement Bonds in principal amount not to exceed $31,685,000
......................................................................❑
AGAINST the issuance of Arts Corridor Improvement Bonds in principal amount not to exceed $31,685,000
...............................................................❑
Question Nine:
There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of
City of Fayetteville, Arkansas Page 6 Printed on 1211912018
File Number.' 2018-0651
capital improvement bonds in principal amount not to exceed $36,965,000 (the "Police Facilities Improvement
Bonds") pursuant to the Local Government Bond Act (as defined in Question One) for the purpose of financing
all or a portion of the costs of certain police station design, construction and improvements, which may include
land acquisition, and the acquisition of police equipment. If the issuance of the Police Facilities Improvement
Bonds is approved, the Police Facilities Improvement Bonds shall be secured by a pledge of and lien upon all
of the receipts of a special citywide sales and use tax at the rate of one percent (1.00%) levied pursuant to the
Local Government Bond Act (the "Sales and Use Tax").
Vote on the question by placing an "X" in one of the squares following the question, either for or against:
FOR the issuance of Police Facilities Improvement Bonds . in principal amount not to exceed
$36,965,000....................................................................❑
AGAINST the issuance of Police Facilities Improvement Bonds in principal amount not to exceed
$36,965,000...................................................... ❑
Question Ten:
There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of
capital improvement bonds in principal amount not to exceed $15,840,000 (the "Firefighting Facilities
Improvement. Bonds") pursuant to the Local Government Bond Act (as defined in Question One) for the
purpose of financing all or a portion of the costs of certain fire station design and construction, which may
include land acquisition, and the acquisition of firefighting vehicles and equipment. If the issuance of the
Firefighting Facilities Improvement Bonds is approved, the Firefighting Facilities Improvement Bonds shall be
secured by a pledge of and lien upon all of the receipts of a special citywide sales and use tax at the rate of one
percent (1.00%) levied pursuant to the Local Government Bond Act (the "Sales and Use Tax").
Vote on the question by placing an "X" in one of the squares following the question, either for or against:
FOR the issuance of Firefighting Facilities Improvement Bonds in principal amount not to exceed
$15,840,000.....................................................❑
AGAINST the issuance of Firefighting Facilities Improvement Bonds in principal amount not to exceed
$15,840,000...................................................... ❑
Section 5. 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 Arkansas municipal elections unless otherwise provided in
the Local Government Bond Act, and only qualified voters of the City shall have the right to vote at the election.
The City Clerk is hereby directed to give notice of the special election by one advertisement in a newspaper of
general circulation within the City, the publication to be not less than ten (10) days prior to the date of the
election.
Section 6. That a copy of this Ordinance shall be given to the Washington County Board of Election
Commissioners at least sixty (60) days prior to the date of the special election so that the necessary election
officials and supplies may be provided. A certified copy of this Ordinance shall also be provided to the
Director of the Department of Finance and Administration and to the Treasurer of the State of Arkansas as
soon as practical.
Section 7. That the results of the special election shall be proclaimed by the Mayor, and his proclamation
shall be published one time in a newspaper of general circulation within the City. The proclamation shall advise
that the results as proclaimed shall be conclusive unless attacked in the Circuit Court of Washington County
within thirty (30) days after the date of publication of the proclamation.
Section S. That the Mayor and the City Clerk, for and on behalf of the City, be, and they hereby are
authorized and directed to do any and all things necessary to call and hold the special election as herein
provided and, if the issuance of the Refunding Bonds and any of the other capital improvement bonds described
City of Fayetteville, Arkansas Page 7 Printed on 1211912018
File Number: 2018-0651
herein are approved by the electors, to cause the Sales and Use Tax to be collected in accordance with the
Local Government Bond Act, and to perform all acts of whatever nature necessary to carry out the authority
conferred by this Ordinance.
Section 9. That the City considers this Ordinance to be its declaration of official intent to issue the Bonds
and to make reimbursement to the City with a portion of the proceeds thereof for all original expenditures
incurred by the City in acquiring, constructing or equipping any of the projects described herein between the
date that is sixty (60) days prior to the date of this Ordinance and the date a series of Bonds is issued, plus a de
minimis amount and preliminary expenditures, as such terms are defined in Section 1.150-2(f) of the Federal
Income Tax Regulations.
Section 10. That Kutak Rock LLP is hereby engaged as Bond Counsel and Stephens Inc. is hereby
engaged as Underwriter with respect to the issuance of the Bonds. The fees and expenses of Bond Counsel
and the Underwriter shall be a cost of issuance of the Bonds to be paid with Bond proceeds.
Section 11. That the provisions of this Ordinance are hereby declared to be separable and if any provision
shall for any reason be held illegal or invalid, such holding shall not affect the validity of the remainder of this
Ordinance.
Section 12. That all ordinances and parts thereof in conflict herewith are hereby repealed to the extent of
such conflict.
City of Fayetteville, Arkansas Page 8 Printed on 1211912018
Paul Becker
Submitted By
City of Fayetteville Staff Review Form
2018-0651
Legistar File ID
12/4/2018
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
11/15/2018 CHIEF FINANCIAL OFFICER (110)
Submitted Date Division / Department
Action Recommendation:
Approval of an Ordinance calling and setting a date for a special election on the questions of the issuance by the
City of Sales and Use Tax Refunding Bonds and Sales and Use Tax Capital Improvement Bonds for various purposes;
levying a replacement special local sales and use tax of one percent (1.00%) for the purpose of retiring such bonds;
prescribing other matters pertaining thereto.
Account Number
Project Number
Budgeted Item? No
Does item have a cost? Yes
Budget Adjustment Attached? No
Budget Impact:
Current Budget
Funds Obligated
Current Balance
Item Cost
Budget Adjustment
Remaining Budget
Fund
Project Title
V20180321
Purchase Order Number: Previous Ordinance or Resolution #
Change Order Number:
Original Contract Number:
Comments:
Approval Date:
s z CITY OF
FAYETTEVILLE
ARKANSAS
DECEMBER 4, 2018
TO: Mayor and City Council
THRU: Don Marr, Chief of Staff
FROM: Paul A Becker, Chief Financial Officer
DATE: November 15, 2018
CITY COUNCIL MEMO
SUBJECT: Request for a Special Election to consider a replacement 1% Sales and Use
Tax, which maintains the current tax rate, for the retirement of current Sales and Use Tax
Bonds and the issuance of new bonds for the funding of various Capital Improvement
Projects.
RECOMMENDATION
To approve the request for a special election asking the voter to approve a replacement 1 % Sales
and Use Tax, which maintains the current tax rate, for the purpose of issuing bonds in an amount
not to exceed $226,065,000 to refinance the remaining Sales and Use Tax Bonds and provide for
the issuance of additional bonds for the purposes as defined in the ordinance.
BACKGROUND:
The Sales and Use Tax Bonds authorized by the citizens of Fayetteville in the 2006 Special
Election will be paid off in 2019, which is earlier than anticipated due to increased sales tax
collections.
The statutes in the State of Arkansas provide for the financing of major capital projects through
the use of Sales and Use Taxes, generally used to pay the debt service costs associated with the
issuance of bonds. To accomplish this the voter must first authorize the taxes necessary to pay
debt service obligations for projects identified by ordinance.
DISCUSSION:
As Fayetteville continues to grow capital needs arise which have been identified. The current City
project needs have been identified below in the following estimated amounts:
1) The need for Road Improvement Projects - $70 million
2) The need for Trail Improvement Projects - $6.5 million
3) The need for Drainage Improvement Projects - $15 million
4) The need for Park Improvement Projects - $25 million
5) The need for Economic Development Projects - $3 million
6) The need for City Facilities Improvements - $3 million
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
7) The need for Construction of an Arts Corridor - $30 million
8) The need for Police Facilities Improvements - $35 million
9) The need for Firefighting Facilities Improvements - $15 million
However, to address these improvements the authorization to refund the current Sales and Use
Tax bonds must first be approved. The request is for up to $226,065,000 to ensure the proceeds
received will be sufficient to complete the projects. Based on current Sales and Use Tax
Collections that amount would pay off in 16 years.
BUDGET/Staff Impact:
This request is to ask the citizens for a 1 % Sales and Use Tax for refinancing the remaining Sales
and Use Tax bonds and the issuance of new bonds in a total amount not to exceed $226,065,000.
The issuance of the Bonds themselves would then be determined by the Mayor and City Council
by separate ordinance. It is anticipated that these bonds would be issued incrementally at the
time the anticipated project is ready to begin. The bonds would also be issued in view of the
economic conditions prevailing at the time.
2
OFFICE. OF THE
CITY ATTORNEY
DEPARTMENTAL CORRESPONDENCE
TO: Mayor Lioneld Jordan
City Council
CC: Don Marr, Chief of Staff
Paul Becker, Chief Financial Officer
FROM: Kit Williams, City Attorney
DATE: December 10, 2018
Kit Williams
City Attorney
Blake Pennington
Assistant City Attorriey
Rhonda Lynch
Paralegal
RE: Proposed language to require replacement parking if all or most public parking
is removed from the Walton Arts Center parking lot
I was requested by City Council Member Tennant to draft some language for the
Ballot wording that would ensure that before substantial public parking was removed or
lost because of the construction or development of the Cultural Arts Corridor concept
plans for the Walton Arts Center Lot (a/k/a West Avenue Lot), new net replacement
public parking spaces in proximity to the Walton Arts Center would be available for the
public. Attached is a copy of such new ballot language which has been bolded.
During this process, we discovered two typos (Gregg Avenue lacked its second
"g" and Cultural Arts Corridor was misidentified as "center" rather than "corridor'.
Regardless whether the City Council decides to support any changes to the Ballot
language to require replacement parking, we need to amend this ordinance to fix those
two typos.
The language I primarily drafted (which was examined by our Bond Counsel,
Gordon Wilbourn, whose suggested revisions I then incorporated into my draft) was
designed to be as clear as possible that replacement public parking would be required
before any substantial amount of public parking was removed or lost on the Walton Arts
Center lot. I put in the initial trigger at 25 or more parking spaces being removed in
deference to City Council Member Matthew Petty's statement that 20 current parking
spaces need to be removed to substantially improve bicycle safety on our trail. That
safety measure, if needed, could be accomplished without requiring any immediate new
replacement parking to be available.
I also specifically identified what I believe to be the two most likely places where
the desired close proximity to the Walton Arts Center replacement parking spaces could
be constructed in parking decks. One would be the current City parking lot on School
Avenue across the street from our current parking deck and the Walton Arts Center. The
other would be the currently privately -owned parking lot north of Dickson Street often
referred to as the "Depot" lot. This could also include some or all of the Bank of
Fayetteville property on the corner of West and Dickson which adjoins Mr. Greg House's
"Depot" lot. Identifying these two locations on the ballot should make them legally safe
for a new City parking deck.
Other potential parking facilities -could also be constructed, but some listed by our
parking consultants present substantially larger and more complex problems as they are
owned by the University of Arkansas (singly or jointly), are subject to long-term leases to
public entities, or are significantly farther walking distance away from the Walton Arts
Center's main public entrances. My proposed language does allow for different locations
than the two identified parking lots. After listening to the public, I thought we should
try to ensure at least "reasonable proximity" by limiting the walking distance from any
replacement public parking space to a Walton Arts Center main entrance to not more
than one and a half times the current walking distance from the most distant Walton Arts
Center Lot parking space. If the City Council believes my proposal is too far or too close,
you may certainly provide your own distance or other definition of "reasonable
proximity." Without any such definition, "reasonable proximity" could lead to lawsuits
from unhappy neighbors, businesses or patrons.
I need to caution the City Council that the more complex a requirement for
replacement parking you add to this Ballot Issue, the more opportunity you provide for
an unhappy property owner, business owner or citizen/ patron to sue claiming that the
City is not following the Ballot demands correctly. I believe that specifically identifying
the two existing parking lots (School Avenue City Lot and the Northwest corner of
Dickson and West private lots) as appropriate for new replacement parking makes these
two lots safe for consideration. One issue for either of these lots is that the "net new
public parking spaces" in my suggested ballot language would mean either of these new
parking decks would need to replace all lost parking spaces of the lot as well as the 290
parking spaces lost from the Walton Arts Center parking lot and thus be a bigger parking
deck than if no parking spaces were lost because of the construction of the new parking
deck.
I should note that if the City Council approves development of the Walton Arts
Center Parking lot that does not remove all public parking or replaces some lost parking
by underground or structured public parking on the site of the Walton Arts Center
Parking Lot, only the net loss of public parking would need to be replaced. Parking
required for any residential development cannot be counted as "public parking."
2
Question Ei
There is submitted to the qualified electors of the City of Fayetteville, Arkansas (the "City"), the
question of the issuance of capital improvement bonds in principal amount not to exceed
$31,685,000 (the "Arts Corridor Improvement Bonds") pursuant to the Local Government Bond
Act (as defined in Question One) for the purpose of financing all or a portion of the costs of
acquisition, design, construction and equipping of certain Cultural Arts Corridor improvements,
within or near an area bordered by Dickson Street on the north, School Avenue on the east, Prairie
Street on the south, and Gregg Avenue on the west, and which may include street, sidewalk,
boardwalk, trail, pedestrian signal and control, bicycle facilities, curbing, guttering, drainage,
lighting and landscaping improvements, plaza, civic and performance space, art installations,
overlooks, stream restoration, pavilions, structure and other builtiiri s, new and/or replacement
parking facilities, and land and easement ac. uisition . rtor to the removal or loss v�twenty-five
5) o� r more pu lic parking spaces from the a ton Arts Center Parking Lot, a/k/a West
Avenue Parking Lot, due to any development of or construction on such lot related to the
Cultural Arts Corridor, the City must ensure the availability of sufficient net new public
o{�„n parking spaces to fully replace all public parking spaces removed, lost or likely to be removed
or lost within the near future from the Walton Arts Center Parking Lot and not planned to
be promptly replaced below, upon or above the current parking area. These replacement
public parking spaces must be within reasonable proximity to the Walton Arts Center which
would include any public parking deck spaces at the City's School Avenue Parking Lot, the
privately owned West Avenue/Dickson Street (Depot) Parking Lot and any other parking
lot or facility in which all replacement parking spaces are no further from the Walton Arts
Center's main public entrances than one and a half times the walking distance from the
farthest current public parking space on the Walton Arts Center Parkine Lot to the Walton
Arts: Center nearest main public entrance. .f the issuance of the Arts Corridor improvemen
onds is approve ,, e t orrs or Mproveinerit Bonds shall be secured by a pledge of and lien
upon all of the receipts of a special citywide sales and use tax at the rate of one percent (1.00%)
levied pursuant to the Local Government Bond Act (the "Sales and Use Tax").
Vote on the question by placing an "X" in one of the squares following the question, either for or
against:
FOR the issuance of Arts Corridor Improvement Bonds in principal amount not to exceed
$31,685,000 ... ..........:............:......::....:.. ...........................❑
AGAINST the issuance of Arts Corridor Improvement Bonds in principal amount not to exceed $31,685,000
........................................................ 3...... ❑
4844-8363-2497.7
OFFICE OF THE
CITY ATTORNEY
DEPARTMENTAL CORRESPONDENCE
Kit Williams
Cfly kl'orney
Blake Pennitigtol7.
TO: Mayor Lioneld Jordan Assistant Cir),Allorney
City Council Ithonda.i.,rz,ch
Paralegal
CC: Don Marr, Chief of Staff
Paul Becker, Chief Financial Officer
FROM: Kit Williams, City Attorney OK
DATE: December 10, 2018
RE: Proposed use of bonds for "affordable housing" for Fayetteville citizens
Bond Counsel Gordon Wilbourn, in preparation for tomorrow night's work
session, reviewed the law concerning possible use of sales tax bond revenues. for
"affordable" homes for Fayetteville citizens which had been mentioned by some.Councii
Members. He sent me and Finance Director Paul Becker an email that he agreed with an
Attorney General Opinion that a city could not use sales tax bond funds for such housing.
I reviewed that Opinion which I also believe is correct even after the arhendment to
Article 12, Section 5 of the Arkansas Constitution in 2015 which gave new authority to cities
to "Finance economic development projects; or Provide economic development services."
The Attorney General Opinion was in response to a proposal by Little Rock to use
sales tax bond revenue to assist low and moderate income citizens to obtain housing. The
Attorney General ended his Opinion: "the pledge of city monies for this purpose,
specifically sales tax dollars, in my opinion is violative of Arkansas Constitution art. 12,
sec. 5."
All of the currently proposed projects or uses of the Sales Tax Bond revenue are
legally and constitutionally proper and therefore within the City Council's discretion to
refer to Fayetteville s voters. As long as the voters pass and approve Question 1 and any
of the other nine questions, the current one penny capital sales and use bond tax will
continue until all of the bond questions approved by the voters have been paid.
CityClerk
From:
Smith, Sondra
Sent:
Monday, December 10, 2018 5:47 PM
To:
Bolinger, Bonnie; Pennington, Blake; CityClerk; citycouncil@matthewpetty.org; Marr, Don; Eads, Gail;
Roberts, Gina; Henson, Pam; Johnson, Kimberly, Williams, Kit; Branson, Lisa; Jordan, Lioneld; Lynch,
Rhonda; Mulford, Patti; Norton, Susan; Ramos, Eduardo; Smith, Sondra; Gray, Adella; Marsh, Sarah;
Kinioh, Mark; Tennant, Justin; Bunch, Sarah; Smith, Kyle
Cc:
latour.fayetteville@gmail.com
Subject:
FW: Please add Markham Hill purchase to bond package
From: Lisa Orton [mailto:lisa_m_orton@yahoo.com]
Sent: Monday, December 10, 2018 1:50 PM
To: Lisa Orton <lisa_m_orton@yahoo.com>; Smith, Sondra <ssmith@fayetteville-ar.gov>; Stacy Ryburn
<sryburn@nwaonline.com>; letters@nwaonline.com; Sonia Gutierrez <sonia@voteforsoniag.com>; Smith, Kyle
<ward4_pos2@fayetteville-ar.gov>; La Tour, John <ward4_posl@fayetteville-ar.gov>; WEST Doss <west@dosslaw.biz>;
ALEX at West Office <ashirley@dosslaw.biz>; University Heights Neighborhood Association <university-heights-
na@listserv.uark.edu>; Teresa Turk <vote4turk@gmail.com>; NGUYEN KARAS <rckaras@hotmail.com>
Subject: Please add Markham Hill purchase to bond package
Dear City Council, Planning Commission, Environmental Action Committee, Urban Forestry Advisory Board,
Parks & Recreation Advisory Board, and Historic District Commission,
Please add the purchase of all 144 acres of Markham Hill from RMD Properties as part of the bond package. It
could go under the park improvement projects issue. Many current and former residents of Fayetteville would
like the City to save Markham Hill from development and make it a nature and wildlife preserve under a
conservation easement with the NWA Land Trust, for the many reasons listed in the Friends of Markham Hill
petition (see link below) as well as compatibility, traffic, safety, etc. within an historic, wooded, low-density
residential neighborhood adjacent to the University of Arkansas campus. We do not want urbanization,
development, and infill to destroy Fayetteville's woods, parks, older and low-density residential neighborhoods
which all contribute to the appeal and charm of Fayetteville. Thank you for your serious consideration.
Sincerely,
Lisa Orton
410-674-8440 (c)
Sign the Petition
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Fayetteville City Council and. Planning Commission: Save
Markham Hill from development and snake it a nature and
wildlife preserve
Sent from Yahoo Mail for Wad
2
NoRTHWESTARKANsAs
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ryJvr"1 160�. r%t'i =!,� LViti.E, AR,. Tv!. :. ,'..J.4' �F: V t --Ax_ „ s-6,95-11 8 � 1�A-1 '£:(,;.'
AFFIDAVIT OF PUBLICATION
I Cathy Staggs, do solemnly swear that I am the Accounting
Manager of the Northwest Arkansas Democrat -Gazette, printed
and published in Washington County and Benton County,
Arkansas, and of bona fide circulation, that from my own
personal knowledge and reference to the
files of said publication, the advertisement of:
CITY OF FAYETTEVILLE
Ord. 6126
Was inserted in the Regular Edition on:
January 3, 2019
Publication Charges: $ 1956.50
caz��Stq��
Cathy Sta gs
Subscribed and sworn to before me
This t � day of , 2019.
Notary Public
My Commission Expires: Z104213.4
rLCATHY WILES
Arkansas - Benton County
ubtiC - Comm# 12397118ission Expires Feb 20, 2024**NOTE**-
Please do not pay from Affidavit.
Invoice will be sent.
Attached Copy
RECEIVED
JAN 2 2 2019
CITTY CLERK OFFICE
City of Fayetteville Ordinance: 6126
File Number. 2018-0651
SALES AND USE TAX SPECIAL ELECTION:
AN ORDINANCE CALLING IMPROVEMENT BONDS FOR VARIOUS PURPOSES A DATE R LEVYING AA SPECIAL EREPLACEMENT SPECIALION OLOCAL SALES NSOFTHE UAND EUSE TAX ABYTKE CITYTTHE RATE Of ONE PERCENT (1DI00%)FORTHE PURPOSE OF RETIRING SUCH
BONDS; AND PRESCRIBING OTHER MATTERS PERTAINING THERETO
WHEREAS, Amendment 62 to the Constitution of the State of Arkansas ("Amendment 621 and Title 14, Chapter 164, Subchapter 3 of the Arkansas Code of 1987 Annotated (the 'Local
Government Bond Act") authorize the issuance of capital improvement bonds by municipalities, which bonds may be secured by the pledge of all of the receipts of the special citywide sales and
use tax prescribed by the Local Government Bond Act; and
WHEREAS, pursuant toAmendmen162and the Local Government Bond Act, the City of Fayetteville, Arkansas (the"(ity")has previously issued and there are presently outstanding (i) its Sales
and Use Tax Capital Improvement Bonds, Series 2006A, in the aggregate principal amount of
$625,000 (the"Sedes 2006A Bonds"), (ii) Its Sales and Use Tax Capital Improvement Bonds, Series 2007, in the aggregate principal amount of $3,645,000 (the "Series 2007 Bonds"), (iii) its
Sales and UseTax Capital Improvement Bonds, Series 2009, in the aggregate principal amount of $985,000 (the"Series 2009 Bonds"), (iv) its Sales and UseTax Capital Improvement Bonds, Series
2013, in the aggregate principal amount of $11,695,000 (the"Series 2013 Bonds"), and (v) its Sales and Use Tax Capital Improvement Bonds, Series 2015, in the aggregate principal amount
of $3,480,000 (the"Series 2015 Bonds") (collectively, the'Prior Bonds"); and
WHEREAS, the Prior Bonds are secured by and payable from the receipts of a combined one percent (1.00%) special citywide sales and use tax previously levied under the authority of the Local
Government Bond Act (the'PriorTax ); and
WHEREAS, the City Council has determined that additional revenues can be obtained to finance critical capital improvement needs by restructuring the City's existing indebtedness secured by
sales and use tax receipts through the refunding of the Prior Bonds; and
WHEREAS, if approved by the electors of the City, the (fly has determined to Issue (I) its refund ing bonds in principal amount not to exceed $12,200,000 for the purpose of refunding the Prior
Bands, (ii) its capital improvement bonds in principal amount not to exceed $73,925,000 for the purpose of financing certain street improvements, (iii) Its capital improvement bonds In principal
amount not to exceed $605,000 for the purpose offinandng certain trail system improvements, (iv) its capital improvement bonds in principal amount not to exceed $15,840,000 for the purpose
of financing certain drainage projects, (v) Its capital improvement bonds in principal amount not to exceed $26,405,O00for the purpose of financing certain regional park and other
parks system improvements, (vi) its capital improvement bonds in principal amount not to exceed $3,170,000 for the purpose of financing certain economic development projects, (vii) its capital
improvement bonds in principal amount not to exceed $3,170,000 for the purpose of financing certain City building and grounds renovations and energy efficiency projects, (viii) its capital improve-
ment bonds in principal amount not to exceed $31,685,000 for the purpose of financing certain cultural arts corridor improvements, IN) its capital improvement bonds in principal amount not to
exceed $36,965,000 for the purpose of financing certain police station construction and improvement and the acquisition of police equipment, and (x) its capital improvement bonds in principal
amount not to exceed $15,840,000 for the purpose of financing certain fire station construction and the acquisition of firefighting vehicles and equipment (collectively, the "Bonds'), which Bonds
are to be secured by a pledge of and lien upon all of the receipts of a one percent (1.0096) special citywide sales and use tax (the'Sales and UseTax*),
which Sales and Use Tax shall replace the
existing combined one percent (1.00%) special dtywide sales and use tax (the'PdorTax) securing the Prior Bonds, all as authorized by Amendment 62 and the Local Government Bond Act; and
WHEREAS, the purpose of this Ordinance is to call a special election on the Issuance ofthe Bonds by the City and for related purposes;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Fayetteville, Arkansas:
Section 1. That under the authority of Amendment 62 andthe Local Government Bond Act and subject to approval by the electors of the City of Question One and at least one of the other
questions set forth in Section 4 below, there are hereby levied (i) a sales tax at the rate of one percent (1.00%) on the gross receipts from the sale at retail within the City of all Items and services
which are subject to taxation under the Arkansas Gross Receipts Act of 1941, as amended (Arkansas (ode of1987Annotated 426.52-10letseq.),and (ii) an excise (or use) tax at the rate of one
percent (1.00%) on the storage,use, distribution or other consumption within the City of tangible personal property ortaxable services subject to taxation under the Arkansas Compensating Tax
Act of 1949, as amended (Arkansas Code of 1987 Annotated 426-53-101 et seq.), on the sale price of the property or, in the case of leases or rentals, on the lease or rental price (collectively, the
'Sales and Use Tax"). The Sales and Use Tax shall be levied, andthe net collections received after deduction of the administrative charges of the State of Arkansas and required rebates shall
be utilized only for the payment of debt service on those Bonds approved by the voters. The Sales and UseTax shall be levied and collected only on the gross receipts, gross proceeds or sales price
in the maximum amount allowed from time to time under Arkansas law, subject to rebates and limitation as required for certain'single transactions' as from time to time required under Arkansas
law. The levy and collection of the Sales and Use Tax shall commence on and as of such date as provided in the Local Government Bond Act, and shall cease upon retirement in full of those Bonds
approved by the voters. Any collections of the Prior Tax received after the issuance of the refunding bonds described in Question One (or any other excess collections of the Prior Tax) shall be used to
provide for the payment of debt service on those Bonds approved by the voters.
Section 2. That under the authority of Amendment 62 and the Local Government Bond Act and subject to approval by the electors of the City of both Question One and at least one of the
nce of the City's refunding bonds in the aggregate principal amount of not to exceed $12,200,000 for the purpose
other questions set forth in Section 4 below, there is hereby authorized (1) the iswa
of redeeming the outstanding Prior Bands, (2) the issuance of the City's capital improvement bonds in aggregate principal amount not to exceed $13,925,000 for the purpose offinandng all ora
portion ofthe costs of certain street improvements described in Question Two under Section 4 below, (3) the issuance of the City's capital Improvement bonds in aggregate principal amount
not to exceed $6,865,000 for the purpose of financing all or a portion of the costs of certain trail Improvements described in Question Three under Section 4 below, (4) the issuance of the Ws
capital improvement bonds in aggregate principal amount not to exceed $15,840,000 for the purpose of financing all or a portion of the costs of certain drainage improvements described in in
Question Pour under Section 4 below, (5) the issuance ofthe Citys capital improvement bonds in aggregate principal amount not to exceed $26,405,000 for the purpose of financing all qr a portion
ofthe costs of certain regional park and other parks system improvements described In Question Five under Section 4 below, (6) the issuance of the City's capital improvement bonds in aggregate
principal amount not to exceed $3,170,000 for the purpose of financing all or a portion of the costs of certain economic development projects described in Question Six under Section 4 below,
(7) the issuance ofthe City's capital improvement bonds in aggregate principal amount not to exceed $3,170,000 for the purpose of financing all or a portion of the costs of certain City building
and grounds renovations and refurbishment described in Question Seven under Section 4 below, (8) the issuance of the City's capital improvement bonds in aggregate principal amount not
to exceed $31,685,000 for the purpose of financing all or a portion of the costs of certain cultural arts corridor improvements described in Question Eight under Section 4 below, (9) the issuance
of the City's capital improvement bonds in aggregate principal amount not to exceed $36,965,000 for the purpose of financing all or a portion of the costs of certain police station improvements
and equipment described in Question Nine under Section 4 below, and (10) the issuance of the City's capital improvement bonds in aggregate principal amount not to exceed $15,840,000 for
the purpose of financing all or a portion ofthe costs of certain fire station improvements and equipment described in Question Ten under Section 4below. lfapproved by the electors of the
City, the aforementioned refunding bonds and capital improvement bonds (collectively, the'Bonds') may be issued in one or more series from time to time in an aggregate principal amount
not to exceed the respective principal amount(s) approved by the City's electors. Any Bonds so issued shall be secured by a pledge of and a lien upon all of the receipts of the Sales and UseTax,
as authorized by the Local Government Bond Act
Section 3. That there be, and there Is hereby called, a special election to be held on Tuesday, April 9, 2019, at which election there shall be submitted to the electors of the City the questions of
the issuance of the Bonds.
Section 4. That the questions shall be placed on the ballot for the special election in substantially fhe following forms:
SPECIAL ELECTION ON CITY SALES AND USE TAX LEVY AND BOND ISSUANCE
Upon approval of Question One at least one of the other Questions set forth below, and upon the issuance of the Refunding Bonds (defined in Question One), the Citys existing levy of a combined
one percent (1.00%) sales and use tax (the "Prior Tax) securing the Prior Bonds (defined in Question One) shall cease and such tax will be replaced by the one percent (1.00%) Sales and Use
Tax (defined in Question One). Such Sales and Use Tax shall commence on and as of such date as provided in Arkansas law and shall cease upon retirement of all ofthe approved bonds. Unless
Question One andatleostone ofthe other Questions set forth below are approved none of the bonds descdbedbelowwill be issued, the Sales and Use Tax will not be levied and the Prior Tax
will remain in place until payment in full ofthe Prior Bonds.
The bonds described below that are approved may be combined into single issue or may beissued in series from time to time and maybe issued on a tax-exempt ortaxable basis.The net collections
ofthe Sales and UseTax remaining after the State of Arkansas deducts its administrative charges will,be used solely to retire those bonds described below which are approved by the voters
and obligations ofthe City with respect thereto.
Question One:
There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of refunding bonds in principal amount not to exceed $12,200,000 (the "Refunding
Bonds) pursuant to Title 14, Chapter 164, Subcha pter 3 of the Arkansas Code of 1987Annotated (the"Local Government Bond Act') for the purpose of refunding the City's outstanding (I) Sales
and UseTax Capital Improvement Bonds, Series 2006A, (ii) Sales and Use Tax Capital improvement Bonds, Series 2007, (iii) Sales and Use Tax Capital Improvement Bonds, Series 2009, (iv) Sales
and Use Tax Capital Improvement Bonds, Series 2013, and (v) Sales and Use Tax Capital Improvement Bonds, Series 2015 (collectively, the "Prior Bonds"). If the issuance of the Refunding Bonds is
approved, the Refunding Bonds shall be secured by a pledge ofand lien upon all ofthe receipts of a special dtywide sales and use tax at the rate of one percent (1.00%) levied pursuant to the
Local Government Bond Act (the'Salesand UseTax").
Vote on the question by placing an'X"inone ofthe squares following the question, either for oragainst:
FOR the issuance of Refunding Bonds in principal amount not to exceed $12,200,000.........................................................................................❑
AGAINST the issuance of Refunding Bonds In principal amount not to exceed 512,200,000.........................................•.•..•.•••••••...............•.......•••...•❑
uesti n w
Thereis submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of capital improvement bonds in principal amount not to exceed $73,925,000 (the
'Street Improvement Bonds) pursuant to the Local Government Bond Act (as defined in Question One) forthe purpose offinancing all or a portion ofthe costs ofright-of-way acquisition, design,
coristmction, reconstruction, repair, resurfacing, straightening and width modification of certain City streets, which may include related sidewalk, traffic signal and control, lighting, curbing,
guttering, bicycle lane, landscaping, drainage and safety improvements and related curbside pedestrian facilities such as bus pickup structures and concrete waiting pads. If the issuance ofthe
Street Improvement Bonds is approved, the Street Improvement Bonds shall be secured by a pledge of and lien upon all of the receipts of a special citywide sales and use tax at the rate afone
percent (1.00%) levied pursuant to the local Government Bond Act (the"Sales and UseTax').
Vote on the question by placingan'X"in one ofthe squares following the question, either for oragainst:
FOR the issuance of Street improvement Bonds in principal amount not to exceed 573,925,000.............................................................••.•••.............•❑
AGAINST the issuance of Street Improvement Bonds in principal amount not to exceed $73,925,000 ................................................................................
Question Three
J There is submitted to the qualified electors ofthe CityofFayetteville, Arkansas, the question of the issuance of capital improvementbondsinprincipalamountnot toexceed S6,865,000(the"Trai
y Improvement Bonds") pursuant to the local Government Bond Act (as defined in Question One) for the purpose offinandng all or a portion ofthe costs of design, construction, reconstruction
extension and equipping of certain Gtytrail system improvements, which may include related pedestrian signal, lighting, landscaping, drainage and safety improvements and right-of-way acqui
sition. If the issuance of the Trail Improvement Bonds is approved, the Trail Improvement Bonds shall be secured by a pledge of and lien upon all of the receipts of a special citywide sales and use to
at the rate of one percent (1.00%) levied pursuant to the local Government Bond Act (the *Sales and Use Tax).
Vote on the question by placing an'X"in one of the squares following the question, either for or against:
FOR the Issuance of Trail Improvement Bonds In principal amount not to exceed $6,865,000.................................................................................❑
AGAINST the issuance of Lail ImprovementBonds in principal amount not to exceed $6,865,000.._............................................................................❑
There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of capital Improvement bonds in principal amount not to exceed $15,840,000 (the
'Drainage Improvement Bondi) pursuanttothe Local Government Bond Act (as defined in Question One) for the purpose of financing all or a portion ofthe costs ofthe design, construction,
reconstruction, repair, retrofit, extension, enlargement and equipping of certain drainage facilities, which may include land and easement acquisition and water quality features such as detention
and retention basins and stream restoration. if the issuance of the Drainage Improvement Bonds is approved, the Drainage Improvement Bonds shall be secured by a pledge of and lien upon all of
the receipts of a special citywide sales and use tax at the rate of one percent (1.00%) 1 evied purstra nt to the Local Government Bond Act (the 'Sales and Use Tax)..
Vote on the question by placing an"X"in one ofthe squares following the question, either for oragainst:
FOR the issuance of Drainage Improvement Bonds in principal amount not to exceed $15,840,000 .............................................................................❑
AGAINST the issuance of Drainage Improvement Bonds in principal amount not to exceed $15,840,DDO..........................................................................❑
Question Five;*
There is submitted to the qualified electors ofthe Cityoffayetteville, Arkansas, the question ofthe issuance of capital improvement bonds in principal amount not to exceed $26,405,000 (the"Park
Improvement Bonds") pursuant to the local Government Bond Act (as defined in Question One) for the purpose of financing all or a portion ofthe costs of acquisition, design, construction and
equipping of certain regional park and other parks system improvements, which may include athletic fields and facilities, playgrounds, pools and splash pads, trails, campgrounds, picnic areas and
pavilions, land acquisition, open space preservation and other recreational facilities and support facilities, such as resiroomsand parking. If the issuance of the Park Improvement Bonds is approved,
the Park Improvement Bonds shall be secured by a pledge of and lien upon all ofthe receipts of a special citywide sales and use tax at the rate of one percent (1.00%) levied pursuant to the Local
Government Bond Act (the"Sales and Use Tax').
Vote on the question by placing an"X"inone ofthe squares following the question, either for oragainst:
FOR the issuance 'of Park improvement Bonds in principal amount not to exceed $26,405,000 ....................................................................................❑
AGAINST the issuance of Park Improvement Bonds in principal amount not to exceed 526,405,0D0..................................................................................0
Question ix:
There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of capital improvement bonds in principal amount not to exceed $3,170,000 (the
"Economic Development Project Bonds) pursuant to the Local Government Bond Act (as defined in Question One) for the purpose of financing all or a portion of the costs of acquisition, design,
construction and equipping of certain economic development projects, which may include land acquisition, site development and infrastructure useful in the development, retention or expansion
of manufacturing, production and industrial facilities, research, technology and development facilities, distribution centers, call centers, warehouse facilities, job training facilities or regional or
national corporate headquarters facilities. If the issuance of the Economic Development Project Bonds Is approved, the Economic Development Project Bonds shall be secured by a pledge of and
lien upon all of the receipts of a special citywide sales and use tax at the rate ofone percent (1.OD%) levied pursuant to the Local Government Bond Act (the'Sales and Use Tax").
Vote on the question by placing an"X"in one ofthe squares following the question, either for oragainst:
FOR the issuance of Economic Development Project Bonds in principal amount not to exceed $3,170,000......................................................................0
AGAINST the issuance of Economic Development Project Bonds in principal amount not to exceed S3,110,000...............................................................0
Question Seven:
Thereis submitted to the qualified electors ofthe City of Fayetteville, Arkansas, the question of the issuance of capital improvement bonds in principal amount not to exceed 53,170,000 (the"City
Facilities Improvement Bonds") pursuant to the Local Government Band Act (as defined in Question One) for the purpose of financing all or a portion of the costs of renovating and refurbishing
certain City buildings and grounds, which may include building envelope and roof improvements, window replacement, insulation, lighting and HVAC system upgrades and certain renewable
energy and energy efficiency projects. lf the issuance ofthe City Facilities Improvement Bonds is approved, the City Facilities Improvement Bonds shall be secured by a pledge of and lien upon
all bf the receipts of a special citywide sales and use tax at the rate of one percent (1.00%) levied pursuant to the Local Government Bond Act (the'Sales and Use Tax').
Vote on the question by placing an"X"in one ofthe squares following the question, either for oragainst:
FOR the issuance of City Facilities Improvement Bonds in principal amount not to exceed $3,170,000.......... :....................................................... ❑
AGAINST the issuance of City Facilities Improvement Bonds in principal amount not to exceed $3,170,000...................................................................0
Question Eight'
There is submitted to the qualified electors of the City of Fayetteville, Arkansas (the "City), the question of the issuance of capital improvement bonds in principal amount not to exceed
$31,685,000 (the "Arts Corridor Improvement Bonds") pursuant to the Local Government Bond Act (as defined in Question One) for the purpose of financing all or a portion of the costs of ac-
quisition, design, construction and equipping of certain Cultural Arts Corridor improvements, within or near an area bordered by Dickson Street on the north, School Avenue on the east, Prairie
Street on the south, and Gregg Avenue on the west, and which may include street, sidewalk, boardwalk, trail, pedestrian signal and control, bicycle facilities, curbing, guttering, drainage, lighting
and landscaping improvements, plaza, dvic and performance space, art installations, overlooks, stream restoration, pavilions, structure and other buildings, new and/or replacement parking
facilities, and land and easement acquisition. Prior to the removal or loss of twenty-five (25) or more public parking spaces from the Walton Arts Center Parking Lot, a/k/a West Avenue Parking lot,
due to any development of or construction on such lot related to the Cultural Arts Corridor, the qty must ensure the availability of sufficient net new public parking spaces to fully replace all public
parking spaces removed, lost or likely to be removed or lost within the near future from the Walton Arts Center Parking Lot and not planned to be promptly replaced below, upon or above the
current parking area.These replacement public parking spaces must be within reasonable proximity to the Walton Arts Center which would include any public parking deck spaces at the City's
School Avenue Parking Lot or on the currently privately owned land north of Dickson Street, west of West Avenue, east ofthe railroad tracks and south of Lafayette or on any other parking lot
or facility in which all replacement parking spaces are within one thousand (1,000) feet of the Walton Arts Centers west public enttance.lf the issuance ofthe Arts Corridor Improvement Bonds
is approved, the Arts Corridor Improvement Bonds shall be secured by a pledge of and lien upon all ofthe receipts of a special dtywide sales and use tax at the rate of one percent (1.00%) levied
pursuant to the Local Government Bond Act (the"Sales and Use Tax').
Vote on the question by placing an 'X" in one of the squares following the question, either for or against:
FOR the issuance of Arts Corridor Improvement Bonds in principal amount not to exceed $31,685,000 ...........................................................................0
AGAINST the issuance of Arts Corridor Improvement Bonds in prindpaI amount not to exceed $31,685,000.....................................................................0
Question Nine:
There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of capital improvement bonds in principal amount not to exceed $36,965,000 (the
"Police Facilities Improvement Bands) pursuant to the Local Government Bond Act (as defined in Question One) for the purpose of financing all or a portion ofthe costs of certain police station
design, construction and improvements, which may include land acquisition, and the acquisition of police equipment If the issuance of the Police Facilities Improvement Bonds is approved, the
Police Facilities Improvement Bonds shall be secured by a pledge of and lien upon all of the receipts of a special citywide sales and use tax at the rate of one percent (1.00%) levied pursuant to
the Local Government Bond Act (the"Sales and Use Tax').
Vote on the question by Placing an'X"inone ofthe squares following the question, either for oragainst:
FOR the issuance of Police Facilities Improvement Bonds in principal amount not to exceed$36,%5,000.....................................................................
AGAINST the issuance of Police Facilities Improvement Bonds in principal amount not to exceed $36,%5,000..................................................................❑
uestionTen:
There is submitted to the qualified electors of the City of Fayetteville, Arkansas, the question of the issuance of capital improvement bonds In principal amount not to exceed $15,840,000 (the
"Firefighting Facilities Improvement Bonds") pursuant to the Local Government Bond Act (as defined in Question One) for the purpose of financing all or a portion of the costs of certain fire station
design and construction, whichmay include land acquisition, and the acquisition of firefighting vehides and equipment. If the issuance of the Firefighting Facilities improvement Bonds is
approved, the Firefighting Facilities Improvement Bonds shall be secured by a pledge of and lien upon all of the receipts ofa special citywide salesand use tax at the rateofone percent (I.OD%)
levied pursuant to the local Government Bond Act (the"Sales and Use Tax').
Vote on the question by placing an"X"in one of the squares following the question, either for oragainst:
FOR the issuance of Firefighting Facilities Improvement Bonds in principal amount not to exceed S15,840,000 ................................ : .............................. ❑
AGAINST the issuance of Firefighting Facilities Improvement Bonds in principal amount not to exceed $15,840,000.......................................................❑
Section S. 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 Arkansas municipal elections
unless otherwise provided in the Local Government Bond Act, and only qualified voters of the City shall have the right to vote at the election. The City Clerk Is hereby directed to give notice ofthe
special election by one advertisement in a newspaper of general circulation within the City, the publication to be not less than ten (10) days prior to the date of the election.
Section 6. That a copy of this Ordinance shall be given to the Washington County Board of Election Commissioners at least sixty (60) days prior to the date of the special election so that the
necessary election officials and supplies maybe provided. A certified copy of this Ordinance shall also be provided to the Director ofthe Department of Finance and Administration and to the
Treasurer of the State of Arkansas as soon as practical.
Section 7. That the results of the special election shall be proclaimed by the Mayor, and his proclamation shall be published onetime in a newspaper of general circulation within the City. The
proclamation shall advise that the results as proclaimed shall be conclusive unless attacked in the Circuit Court of Washington County within thirty (30) days after the date of publication ofthe
proclamation.
Section 8. That the Mayor and the City Clerk, for and on behalf ofthe City, be, and they hereby are authorized and directed to do any and all things necessary to call and hold the special election
as herein provided and, if the issuance ofthe Refunding Bonds and any of the other capital improvement bonds described herein are approved by the electors, to cause the Sales and Use Tax to be
collected in accordance with the Local Government Bond Act, and to perform all acts of whatever nature necessary to carry out the authority conferred by this Ordinance.
Section 9. That the City considers this Ordinance to be its declaration of official intent to issue the Bonds and to make reimbursement to the City with a portion of the proceeds thereof for all
original expenditures incurred by the City in acquid ng, constructing or equipping any of the projects described herein between the date that is sixty (60) days prior to the date of this Ordinance
and the date a series of Bonds is Issued, plus a deminimis amount and preliminary expenditures, as such terms are defined In Section 1.150-2(f) of the Federal Income Tax Regulations.
SectionlO.That Kutak Rock LLP is hereby engaged as Bond Counsel and Stephens Inc is hereby engaged as Underwriter with respect to the issuance of the Bonds. The fees and expenses of
Bond Counsel and the Underwriter shall be a cost of issuance of the Bonds to be paid with Bond proceeds.
Section 11. That the provisions of this Ordinance are hereby declared to be separable and if any provision shall for any reason be held illegal or invalid, such holding shall not affect the validity of
the remainder of this Ordinance.
Section 12. That all ordinances and parts thereof in conflict herewith are hereby repealed to the extent of such conflict.
PASSED and APPROVED on 12/18/2018
Approved: Ltoneld Jordan; Maya
Attest: Sondra E. Smith, City Clerk Treasurer
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