HomeMy WebLinkAboutOrdinance 64442021 JUN -7 Phi 2: 49
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File Number: 2021-0393
113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Ordinance: 6444
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Doc ID: 019926330002 Type. REL
KndRecorded: O6/04/2021 at 04:07:09 PM
Fee Amt: $20.00 Pape i of 2
Washington County, AR
Kyle Sylvester Circuit Clerk
File2021-00021342
ONE PERCENT (1%) SALES AND USE TAX EXTENDING THE EXPIRATION DATE:
AN ORDINANCE EXTENDING THE EXPIRATION DATE FOR THE CURRENT ONE
PERCENT (l%) SALES AND USE TAX ENACTED BY ORDINANCE 5428 ON AUGUST 2,
2011, AND APPROVED BY ABOUT 75% OF THE FAYETTEVILLE VOTERS ON OCTOBER
11, 2011 FROM JUNE 30, 2023 TO JUNE 30, 2033
WHEREAS, the current one percent Sales and Use Tax was originally enacted by the City Council
and approved by the voters in 1993, was reenacted by the City Council on June 4, 2002 and
approved by the voters on July 23, 2002, and was reenacted by the City Council on August 2, 2011
and approved by the voters on October 11, 2011; and
WHEREAS, the current one percent Sales and Use tax is scheduled to expire on June 30, 2023
unless extended by the Fayetteville voters; and
WHEREAS, the current One Percent Sales and Use Tax provides substantial and necessary funds to
support the Fire Department, Police Department, Community Services Department, Parks and
Recreation Department as well as all other General Governmental Departments and the Fayetteville
Public Library; and
WHEREAS, the City Council has determined that there is a great and vital need in Fayetteville for the
continuing operation and improvement of municipal services and capital projects which the extension of
the One Percent Sales and Use Tax would provide; and
WHEREAS, this proposal is not for a new or additional tax, but for the continuation of the One Penny
Sales and Use tax that has enabled the City to furnish valuable and needed services and amenities to its
citizens and has helped Fayetteville to be repeatedly recognized and honored at a national level as one
Page 1 Printed on 612121
Ordinance: 6444
File Number.' 2021-0393
of the best places in the United States to live, work, and raise a family; and
WHEREAS, A.C.A. §26-75-208(b)(3) provides Authorizing Legislation that "The governing body of
a city may refer to the voters a change in the expiration date for the sales and use tax approved by the
voters to extend the levy of the sales and use tax beyond the expiration date previously approved."
NOW THEREFORE, BE IT ORDAINED BV THE CITY COUNCIL OF THE CITY OF
FAVETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby determines that under the
Authorizing Legislation quoted above, there is hereby presented to the voters on August 10, 2021 an
extension of the expiration date of the current One Percent (1 %) Sales and Use Tax enacted and
approved by the Fayetteville voters on October 21, 2011, from its previous expiration date of June
30, 2023 until a new expiration date of June 30, 2033.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby determines that all
ordinances or parts thereof in conflict with this ordinance are hereby repealed to the extent of such
conflict.
Section 3: That the City Council of the City of Fayetteville, Arkansas hereby determines that this
ordinance shall not take effect until an election is held on the question of extending the Sales and Use
Tax for an additional ten years at which a majority of the electors voting on the question have
approved such extension until June 30, 2033.
PASSED and APPROVED on 6/1/2021
Attest:
Kara Paxton, City Clerk Treasteer: 44 :G
AS
9 �N 6060,
Page 2 Printed on 612121
Washington County, AR
I certify this instrument was filed on
06/04/2021 04V0 09 PM
and recorded in Real Estate
File Number 2021-00021342
Kyle Sylvester - Circuit Clerk
b , , mow-
City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
(479)575-8323
Text File
File Number: 2021-0393
Agenda Date: 6/1/2021 Version: 1 Status: Passed
In Control: City Council Meetinq File Type: Ordinance
Agenda Number: C.5
ONE PERCENT (1%) SALES AND USE TAX EXTENDING THE EXPIRATION DATE:
AN ORDINANCE EXTENDING THE EXPIRATION DATE FOR THE CURRENT ONE PERCENT
(1%) SALES AND USE TAX ENACTED BY ORDINANCE 5428 ON AUGUST 2, 2011, AND
APPROVED BY ABOUT 75% OF THE FAYETTEVILLE VOTERS ON OCTOBER 11, 2011 FROM
JUNE 30, 2023 TO JUNE 30, 2033
WHEREAS, the current one percent Sales and Use Tax was originally enacted by the City Council and
approved by the voters in 1993, was reenacted by the City Council on June 4, 2002 and approved by the
voters on July 23, 2002, and was reenacted by the City Council on August 2, 2011 and approved by the
voters on October 11, 2011; and
WHEREAS, the current one percent Sales and Use tax is scheduled to expire on June 30, 2023 unless
extended by the Fayetteville voters; and
WHEREAS, the current One Percent Sales and Use Tax provides substantial and necessary funds to support
the Fire Department, Police Department, Community Services Department, Parks and Recreation Department
as well as all other General Governmental Departments and the Fayetteville Public Library; and
WHEREAS, the City Council has determined that there is a great and vital need in Fayetteville for the
continuing operation and improvement of municipal services and capital projects which the extension of the One
Percent Sales and Use Tax would provide; and
WHEREAS, this proposal is not for a new or additional tax, but for the continuation of the One Penny Sales
and Use tax that has enabled the City to furnish valuable and needed services and amenities to its citizens and
has helped Fayetteville to be repeatedly recognized and honored at a national level as one of the best places in
the United States to live, work, and raise a family; and
WHEREAS, A.C.A. §26-75-208(b)(3) provides Authorizing Legislation that "The governing body of a city
may refer to the voters a change in the expiration date for the sales and use tax approved by the voters to
extend the levy of the sales and use tax beyond the expiration date previously approved."
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
City of Fayetteville, Arkansas Page 1 Printed on 61212021
File Number: 2021-0393
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby determines that under the
Authorizing Legislation quoted above, there is hereby presented to the voters on August 10, 2021 an extension
of the expiration date of the current One Percent (1 %) Sales and Use Tax enacted and approved by the
Fayetteville voters on October 21, 2011, from its previous expiration date of June 30, 2023 until a new
expiration date of June 30, 2033.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby determines that all ordinances or
parts thereof in conflict with this ordinance are hereby repealed to the extent of such conflict.
Section 3: That the City Council of the City of Fayetteville, Arkansas hereby determines that this ordinance
shall not take effect until an election is held on the question of extending the Sales and Use Tax for an additional
ten years at which a majority of the electors voting on the question have approved such extension until June 30,
2033.
City of Fayetteville, Arkansas Page 2 Printed on 61212021
Paul A. Becker
Submitted By
City of Fayetteville Staff Review Form
2021-0393
Legistar File ID
6/1/2021
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
5/14/2021 CHIEF FINANCIAL OFFICER (110)
Submitted Date Division / Department
Action Recommendation:
Request for an Ordinance continuing the one percent City Sales and Use Tax and providing for a special election
called for that purpose on August 10, 2021.
Budget Impact:
NA NA
Account Number Fund
NA NA
Project Number Project Title
Budgeted Item? NA Current Budget $ -
Funds Obligated $ -
Current Balance
Does item have a cost? NA Item Cost
Budget Adjustment Attached? NA Budget Adjustment
Remaining Budget
Purchase Order Number:
Change Order Number:
Original Contract Number:
Comments:
V20180321
Previous Ordinance or Resolution # 5428
Approval Date:
CITY OF
FAYETTEVILLE
ARKANSAS
MEETING OF JUNE 1, 2021
TO: Mayor and City Council
FROM: Paul A. Becker, Chief Financial Officer
DATE: May 14, 2021
CITY COUNCIL MEMO
SUBJECT: Request for an Ordinance continuing the one percent City Sales and Use
Tax and providing for a special election called for that purpose on August
10, 2021.
RECOMMENDATION:
An Ordinance continuing the one percent City Sales and Use Tax and providing for a special
election called for that purpose on August 10, 2021.
BACKGROUND:
As you are all aware, the Arkansas Statutes provide enabling legislation for a levy of a one
percent City-wide Sales and Use Tax if approved by the voters. In 2011, the citizens of
Fayetteville elected to continue the one percent City-wide Sales Tax which was then scheduled
to expire in June 2013. The Sales Tax will continue until June 2023 pursuant to the authorizing
ordinance voted on. As we approach 2023, it is extremely important that adequate lead time
be provided for consideration of the request for continuation of this tax. It is also important
that the citizens consider the continuation of this tax before they are presented with any
request for new sales taxes proposed by other jurisdictions. The continuation of the City Sales
Tax must again be authorized by the voter; therefore, the administration is requesting a special
election for that purpose be held on August 10, 2021.
DISCUSSION:
As your Chief Financial Officer, it is my responsibility to identify issues and potential
ramifications associated with the loss of the City Sales Tax revenue if not continued via voter
approval. I will try to do this as simply and clearly as possible.
The City collects approximately $22,500,000 annually from the City-wide Sales and Use Tax.
That amount is split in a 60-40 ratio between General Fund Operations and Sales Tax Capital
Improvements respectively. In dollars this is $13,500,000 for operations and $9,000,000 for
capital. In percentage terms this is 27.25% of the General Fund Revenue and 100% of the Sales
Tax Capital Improvements Program. A revenue loss of that magnitude could not be replaced by
other sources. It is also important to note that other revenue sources are currently
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
experiencing downward pressures in the short run due to coronavirus and related issues;
therefore, we would have to cut operating expenses and related services dramatically. The
ongoing Sales Tax Capital Program of $9,000,000 would disappear.
A quick review of the General Fund expenditures budget will indicate that 81.6% of that budget
is for personnel services. That is approximately $40,400,000. If we cut each category in the
budget in direct proportion to the revenue loss (27.25%), the personnel services category
would have to be reduced by about $11,000,000. There are 498.25 authorized FTEs in the
General Fund. Twenty-seven and one -quarter percent of authorized FTEs is 136, but the loss of
jobs in number would be larger than that and could be as many as 150. Since Public Safety is
about 60% of the numerical total, that could mean 81 job reductions in that sector alone.
The Capital Improvements Program funds many very important programs such as:
• Street Overlay • Trails
• Library Materials • Information Technology
• Fire Apparatus
• Sidewalks/Drainage
Equipment Upgrades & Replacements
Amounts currently provided from the Sales Tax Capital Fund for these programs would be
eliminated. The current amount funded is approximately $9,000,000 per year.
SUMMARY:
The above discussion should not be construed as a plan of action if the City Sales and Use Tax is
not continued. However, I believe that the facts shown above indicate both the magnitude and
potential service reductions that the loss of the City's largest single revenue producing tax
would cause.
The citizens of Fayetteville have shown themselves to be thoughtful and intelligent voters. I am
confident that after being shown the facts, they will overwhelmingly vote to continue this tax,
which provides funding for many vital programs.
BUDGET/STAFF IMPACT:
The impact of non -approval would be the loss of $22,500,000 in revenue for vital programs.
„ll I , IN 61 ` 1X N1
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AFFIDAVIT OF PUBLICATION
I, Brittany Smith, do solemnly swear that I am the Accounting Legal Clerk of the Northwest Arkansas
Democrat -Gazette, a daily newspaper printed and published in said County, State of Arkansas; that I was so
related to this publication at and during the publication of the annexed legal advertisement
the matter of. Notice pending in the Court, in said County, and at the dates of
the several publications of said advertisement stated below,
and that during said periods and at said dates, said newspaper
was printed and had a bona fide circulation in said County;
that said newspaper had been regularly printed and published
in said County, and had a bona fide circulation therein for the
period of one month before the date of the first publication of
said advertisement; and that said advertisement was published
in the regular daily issues of said newspaper as stated below.
City of Fayetteville
Ord 6444
Was inserted in the Regular Edition on:
June 6, 2021
Publication Charges: $231.04
Brittany Smith
Subscribed and sworn to before me
This -7 day of J , , 2021.
Cathy Wiles
Benton COUNTY
NOTARY PUBLIC - ARKANSAS
M mission Expires 02-20-2024
'TY /' , C Q4nmission No.12397118
tvUtaiy FUUuc
My Commission Expires: Z/lo 24
**NOTE** Please do not pay from Affidavit
Invoice will be sent.
Ordinance: 6444
File Number: 2021-0393
ONE PERCENT (I %) SALES
AND USE TAX EXTENDING
THE EXPIRATION DATE:
AN ORDINANCE EXTENDING
THE EXPIRATION DATE FOR
THE CURRENT ONE PERCENT
(I%) SALES AND USE TAX
ENACTED BY ORDINANCE
5428 ON AUGUST 2, 2011, AND
APPROVED BY ABOUT 75% OF
THE FAYETTEVILLE VOTERS
ION OCTOBER
11, 2011 FROM JUNE 30, 2023
TO DUNE 30, 2033
WHEREAS, the current one
percent Sales and Use Tax was
originally enacted by the City
Council and approved by the voters
in 1993, was reenacted by the City
Council on June 4, 2002 and
approved by the voters on July 23.
2002, and was reenacted by the
City Council on August 2, 2011
and approved by the voters on
October 11, 2011; and
WHEREAS, the current one
percent Sales and Use tax is
scheduled to expire on June 30,
2023 unless extended by the
Fayetteville voters; and
WHEREAS, the current One
Percent Sales and Use Tax provides
substantial and necessary funds to
support the Fire Deparunen4 Police
Department, Community Services
Department, Parks and Recreation
Department as well as all other
General Governmental
Departments and the Fayetteville
Public Library; and
WHEREAS, the City Council has
determined that there is a great and
vital need in Fayetteville for the
continuing operation and
improvement of municipal services
and capital projects which the
extension of the One Percent Sales
and Use Tax would provide; and
WHEREAS, this proposal is not for
a new or additional tax, but for the
continuation of the One Penny
Sales and Use tax that has enabled
the City to fumish valuable and
needed services and amenities to its'.
citizens and has helped Fayetteville
to be repeatedly recognized and
honored at a national level as one
Ordinance: 6444
Fite Number: 2021-0393
of the best places in the United
States to live, work, and raise a
family; and
WHEREAS, A.C.A. §26-75-
208(b)(3) provides Authorizing
Legislation that "The governing
body of a city may refer to the
voters a change in the expiration
date for the sales and use tax
approved by the voters to extend the
levy of the sales and use tax beyond
the expiration date previously
approved.”
NOW THEREFORE, BE IT
ORDAINED BY THE CITY
COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of
the City of Fayetteville, Arkansas
hereby determines that under the
Authorizing Legislation quoted
above, there is hereby presented to
the voters on August 10, 2021 an
extension of the expiration date of
the current One Percent (I %) Sales
and Use Tax enacted and approved
by the Fayetteville voters on
October 21, 2011, from its previous
expiration date of June
30, 2023 until a new expiration date
of June 30, 2033.
Section 2: That the City Council of
the City of Fayetteville, Arkansas
hereby determines that all
ordinances or parts thereof in
conflict with this ordinance are
hereby repealed to the extent of such
conflict.
Section 3: That the City Council of
the City of Fayetteville, Arkansas
hereby determines that this
ordinance shall not take effect until
an election is held on the question of
extending the Sales and Use Tax for
an additional ten years at which a
majority of the electors voting on
the question have approved such
extension until June 30, 2033.
PASSED and APPROVED on
6/12021
Approved:
Lioneld Jordan, Mayor
Attest:
Kara Paxton, City Clerk Treasurer
75426951 June 6, 2021
Subscribed and sworn to before me
This 7 day of sce� , 2021.
— 0.a� tl�&
Notary Public J/w
My Commission Expires: ZLa _,7
**NOTE**
Please do not pay from Affidavit.
Invoice will be sent.
Democrat a FA I (ga�et�e
u.^ 3CX I CCl';aAVF1 "'E ilti.c i'.P%27C? - 4 79-4"2-f700 - f 1Y 4 9-695-II78 - WW'N.` WADC-.C,0M
AFFIDAVIT OF PUBLICATION
1, Brittany Smith, do solemnly swear that I am the Accounting Legal Clerk of the
Northwest Arkansas Democrat -Gazette, a daily newspaper printed and
published in said County, State of Arkansas; that I was so related to this
publication at and during the publication of the annexed legal advertisement
the matter of: Notice pending in the Court, in said County, and at the dates of
the several publications of said advertisement stated below, and that during said
periods and at said dates, said newspaper was printed and had a bona fide
circulation in said County; that said newspaper had been regularly printed and
published in said County, and had a bona fide circulation therein for the period of
one month before the date of the first publication of said advertisement; and that
said advertisement was published in the regular daily issues of said newspaper
as stated below.
City of Fayetteville
Election Results
Was inserted in the Regular Edition on:
September 5, 2021
Publication Charges: $106.40
Brittany 9mith Cathy Wiles
Benton COUNTY
NOTARY PUBLIC —ARKANSAS
My Commission Expires 02-20-2024
Commission No. 12397118
PUBLIC NOTICE
CITY OF FAYETTEVILLE.
ARKANSAS PROCLAMATION
DECLARING THE RESULTS OF
ELECTION
OFFICE OF THE MAYOR OF THE
CITY OF FAYETTEVILLE,
TO THE PEOPLE OF THE CITY OF
FAYETTEVILLE, ARKANSAS,
WHEREAS, a Special Election was held I
on August 10, 2021 regarding the
proposed ten year extension of a the one
percent (1%) sales and use tax levied
within the City of Fayetteville,
Arkansas, which would have expired on
June 30, 2023, to continue to be
effective through June 30, 2033, as set
forth in Ordinances No. 6444 and 6445.
NOW, THEREFORE,1, Lioneld Jordan,
Mayor of the City of Fayetteville, by
virtue of the authority vested in my by
law, do hereby proclaim the following to
be the results of the August 10,
2021Special Election-
1 ,079 FOR extension of the
current 1% local sales and use tax within
the City of Fayetteville from its current
expiration dale of June 30, 2023 to its
new expiration date of June 30, 2033.
307 AGAINST extension of the
current 1% local sales and use tax within
the City of Fayetteville from its current
expiration date of June 30, 2023, to its
new expiration date of June 30, 2033.
IN WITNESS WHEREOF, I have
hereunto set my hand and caused the
seal of my office to be affixed this 25th
day of August, 2021.
Lioneld Jordan, Mayor
Karea paxton, City Clerk/ Treasurer.
75460704 Sept. 5, 2021