ORD NO 24-2025 CITY OF VAN BUREN,ARKANSAS
ORDINANCE NO. -2025
BE IT ENACTED BY THE CITY COUNCIL, FOR THE CITY OF VAN BUREN,
ARKANSAS,AN ORDINANCE TO BE ENTITLED:
AN ORDINANCE CALLING A SPECIAL ELECTION IN
THE CITY OF VAN BUREN, ARKANSAS ON THE
QUESTIONS OF ISSUING BONDS UNDER AMENDMENT
NO. 62 TO THE CONSTITUTION OF THE STATE OF
ARKANSAS FOR THE PURPOSE OF FINANCING ALL OR
A PORTION OF THE COSTS OF CAPITAL
IMPROVEMENTS; LEVYING A NEW ONE-HALF OF ONE
PERCENT (0.5%) SALES AND USE TAX FOR THE
PURPOSE OF RETIRING SUCH BONDS; AND
PRESCRIBING OTHER MATTERS PERTAINING
THERETO.
WHEREAS, the City Council of the City of Van Buren, Arkansas (the "City") has determined
that the City is in need of:
(a) new park and recreational facilities, including particularly, without
limitation,a community center with swimming facilities,pickleball,basketball and
volleyball courts, a walking track and meeting rooms and any furnishings,
equipment and parking, landscaping, signage, drainage, lighting, street and utility
improvements related thereto (the "Park and Recreational Improvements"); and
(b) new facilities and apparatus for the fire department, including particularly,
without limitation, a fire station and any furnishings, equipment and parking,
landscaping, signage, drainage, lighting, street and utility improvements related
thereto (the "Fire Improvements"); and
WHEREAS, the City can finance all or a portion of the costs of the Park and Recreational
Improvements and the Fire Improvements (collectively, the "Capital
Improvements")by the issuance of capital improvement bonds(the"Bonds")under
the authority of Amendment No. 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 "Authorizing Legislation") allocated as follows:
$36,800,000 in maximum aggregate principal amount for the Park and Recreational
Improvements; and $8,200,000 in maximum aggregate principal amount for the
Fire Improvements; and
WHEREAS, the Authorizing Legislation provides for the levy of one or more city-wide sales
and use taxes at the rate of 0.125%,0.25%,0.5%,0.75%or 1%or any combination
thereof, but not to exceed 1% in the aggregate; and
WHEREAS, the City does not currently levy a sales and use tax under the authority of the
Authorizing Legislation; and
WHEREAS, the City can pay the principal of and interest on the Bonds from the proceeds of a
new city-wide one-half of one percent (0.5%) sales and use tax to be levied under
the authority of the Authorizing Legislation solely for that purpose; and
WHEREAS, the City may provide additional funds to pay or to further secure repayment of the
Bonds if a new city-wide one-half of one percent (0.5%) sales and use tax levied
by Ordinance No. - b approved by the voters; and
WHEREAS, the purpose of this Ordinance is to levy a sales and use tax at the rate of one-half of
one percent (0.5%) on the receipts from the sales at retail within the City of all
items which are subject to taxation under the Arkansas Gross Receipts Act of 1941,
as amended (A.C.A. §§26-52-101, et seq.), and the receipts from storing, using,
distributing or consuming within the City tangible personal property under the
Arkansas Compensating Tax Act of 1949, as amended (A.C.A. §§26-53-101, et
seq.) (collectively, the "Sales and Use Tax") and to submit to the electors of the
City the questions of issuing the Bonds under Amendment 62 and the Authorizing
Legislation at a special election to be called for that purpose.
NOW, THEREFORE, BE IT ORDAINED AND ENACTED BY THE CITY
COUNCIL OF THE CITY OF VAN BUREN,ARKANSAS,THAT:
SECTION 1. Under the authority of the Authorizing Legislation,there is hereby levied 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 used solely for the purpose of retiring or paying obligations
with respect to the Bonds. The Sales and Use Tax shall be levied and collected on
the gross receipts, gross proceeds or sales price in the maximum amount allowed
from time to time by Arkansas law, subject to rebates and limitations as from time
to time required by Arkansas statutes for certain single transactions. The levy of
the Sales and Use Tax shall not take effect until the issuance of the Bonds is
approved by the voters as provided herein.
SECTION 2. There is hereby called a special election to be held on March 3, 2026, at which
election there shall be submitted to the electors of the City,the questions of issuing
the Bonds under Amendment 62 and the Authorizing Legislation to pay all or a
portion of the costs of the Capital Improvements in the maximum aggregate
principal amounts described above,to be payable, in whole or in part, from the net
collections of the Sales and Use Tax.
SECTION 3. The questions of issuing the Bonds shall be placed on the ballot for the election in
substantially the following form:
If bonds for one or more purposes are approved,there will be levied within
the City a new 0.5% sales and use tax, the net collections of which
remaining after deduction of the administrative charges of the State of
Arkansas and required rebates, shall be used solely to retire the bonds and
obligations of the City with respect thereto. The rate of taxation will not
exceed 0.5% even if more than one purpose is approved. The 0.5% sales
and use tax will expire after the bonds have been paid or provision is made
therefore in accordance with Arkansas statutes. The bonds described below
may be combined into a single issue or the bonds may be issued in series
from time to time.
In order to provide additional funds to pay or to further secure repayment
of the bonds, the City may also pledge to the bonds the net collections of a
new 0.5%sales and use tax, if such tax is separately approved by the voters.
PARK AND RECREATIONAL IMPROVEMENT BONDS
Bonds of the City of Van Buren in the maximum aggregate principal amount of
$36,800,000 to finance all or a portion of the costs of new park and recreational
facilities, including particularly, without limitation, a community center with
swimming facilities, pickleball, basketball and volleyball courts, a walking track
and meeting rooms and any furnishings, equipment and parking, landscaping,
signage, drainage, lighting, street and utility improvements related thereto and, in
order to pay the bonds,the levy and pledge of a 0.5%local sales and use tax within
the City.
FOR................................................................................................................................ ❑
AGAINST...................................................................................................................... ❑
FIRE IMPROVEMENT BONDS
Bonds of the City of Van Buren in the maximum aggregate principal amount of
$8,200,000 to finance all or a portion of the costs of new facilities and apparatus
for the fire department, including particularly,without limitation, a fire station and
any furnishings, equipment and parking, landscaping, signage, drainage, lighting,
street and utility improvements related thereto and, in order to pay the bonds, the
levy and pledge of a 0.5% local sales and use tax within the City.
FOR................................................................................................................................ ❑
AGAINST...................................................................................................................... ❑
SECTION 4. 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 municipal elections
unless otherwise provided in the Authorizing Legislation and only qualified voters
of the City shall have the right to vote at the election.
SECTION 5. The results of the election shall be proclaimed by the Mayor, and the Proclamation
shall be published one time in a newspaper having a general circulation in the City,
which Proclamation shall advise that the results as proclaimed shall be conclusive
unless attacked in the courts within thirty days after the date of publication.
SECTION 6. A copy of this Ordinance shall be(a)filed with the Crawford County Clerk at least
70 days prior to the election date and (b) given to the Crawford County Board of
Election Commissioners so that the necessary election officials and supplies may
be provided. A certified copy of this Ordinance shall also be provided to the
Commissioner of Revenues of the State of Arkansas as soon as practical.
SECTION 7. The Mayor and City Clerk, for and on behalf of the City,are hereby 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 Bonds is approved by the electors, to
cause the Sales and Use Tax to be collected in accordance with the Authorizing
Legislation, and to perform all acts of whatever nature necessary to carry out the
authority conferred by this Ordinance.
SECTION 8. Following adoption, this Ordinance shall be posted in the following public places
in the City as set forth in Ordinance No. 04-2019 and Ordinance No. 10-2025: Van
Buren Municipal Complex,Van Buren Library,Van Buren Police Department,Van
Buren Senior Center and Crawford County District Court Building.
SECTION 9. If the Bonds are approved and issued, the City intends to negotiate with Stephens
Inc., which has assisted the City in preparation of the Bond size and repayment
structure, for the sale of the Bonds.
SECITON 10. The provisions of this Ordinance are separable and if a section,phrase or provision
shall be declared invalid, such declaration shall not affect the validity of the
remainder of the Ordinance.
SECTION 11. All ordinances and parts thereof in conflict herewith are hereby repealed to the
extent of such conflict.
IN WITNESS WHEREOF, the City of Van Buren, Arkansas, by its City Council, did
pass, approve, and adopt, by a vote of__for and against, the foregoing Ordinance at its
Special Meeting held on the 8th day of December 2025.
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City of Van Buren
ATTESTED: APPROVED AS TO FORM:
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Shawnna M. eynolds Jacob Howell
City Clerk/Treasurer City Attorney
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