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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 Page 1 Printed on 12/21/18 File Number 2018-0651 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 Page 2 Printed on 12121118 File Number. 2018-0651 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 Page 3 Printed on 12121118 File Number.' 2018-0651 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 ..................................................................................❑ Page 4 Printed on 12121118 File Number 2018-0651 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 Page 5 Printed on 12121118 File Number.' 2018-0651 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 Page 6 Printed on 12/21118 File Number.' 2018-0651 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 Page 7 Printed on 12121118 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 Page 8 Printed on 12/21/18 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 Page 9 Printed on 12121118 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 City o/ Fayetteville, Arkansas Page 1 Printed on 1211912018 File Number: 2018-0651 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 File Number.' 2018-0651 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 City of Fayetteville, Arkansas Page 3 Printed on 1211912018 File Number.' 2018-0651 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 City of Fayetteville, Arkansas Page 4 Printed on 1211912018 File Number: 2018-0651 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........................................................ ❑ City of Fayetteville, Arkansas Page 5 Printed on 12/1912018 File Number: 2018-0651 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 A Easy . of "M Mai KI a a fl o M l �'114,a.k? ll�s } v +, j - TOM a` .W r� 1 Vt tit ® Sign the Petition 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 Democrat *Of azft 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 1 r' ,