Loading...
ORD NO 06-2005 ORDINANCE NO. 6 -2005 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 THE COST OF CAPITAL IMPROVEMENTS; LEVYING A 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 it would be in the best interests of the City to (a) finance all or a portion of the costs of streets, roads and bridges, including particularly, without limitation, constructing and improving the Rena Road Project and any paving, repair, curbing, gutter and drainage improvements, equipment and land acquisition and street lighting, utility improvements and traffic signals related thereto or in support thereof (the "Street Improvements (b) finance all or a portion of the costs of library facilities, including particularly, without limitation, acquiring, constructing, equipping and furnishing library facilities, and any land acquisition and parking, street, drainage and utility improvements related thereto or in support thereof (the "Library Improvements (c) finance all or a portion of the costs of park and recreational facilities, including particularly, without limitation, acquiring, constructing, equipping and furnishing a water park, and any land acquisition and parking, street, drainage and utility improvements related thereto or in support thereof (the "Park Improvements and (d) finance all or a portion of the costs of community center facilities, including particularly, without limitation, acquiring, constructing, equipping and furnishing a community center consisting of meeting, fitness, entertainment and recreational facilities, and any land acquisition and parking, street, drainage and utility improvements related thereto or in support thereof (the "Community Center Improvements" and, collectively with the Street Improvements, the Library Improvements and the Park Improvements, the "Improvements and WHEREAS, the City Council proposes to finance all or a portion of the costs of the 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: $10,325,000 in maximum principal amount for the Street Improvements; $1,700,000 in maximum principal amount for the Library Improvements; $4,475,000 in maximum principal amount for the Park Improvements; and $2,800,000 in maximum principal amount for the Community Center Improvements; and WHEREAS, the City can pay the principal of and interest on the Bonds from the proceeds of a City -wide 0.5% sales and use tax to be levied under the authority of the Authorizing Legislation; and WHEREAS, the purpose of this Ordinance is to submit to the electors of the City the questions of issuing the Bonds for the Improvements under Amendment 62 and the Authorizing Legislation at a special election to be called for that purpose and to levy a new 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.) (the "Sales and Use Tax NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Van Buren, Arkansas: Section 1. There be, and there is hereby called, a special election to be held on July 12, 2005, 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 accomplishing the Improvements in the maximum principal amounts described above, to be payable from collections of the Sales and Use Tax remaining after the State of Arkansas deducts its administrative charges. Section 2. In order to provide for the payment of the principal of and interest on the Bonds and all obligations of the City in connection therewith, there is hereby levied the Sales and Use Tax. The levy of the Sales and Use Tax shall not become effective until the special election called in Section 1 above has been held and the issuance of the Bonds for one or more of the purposes is approved by the voters. The Sales and Use Tax shall be levied and collected on the gross receipts, gross proceeds or sales price for each single transaction in the maximum amount allowed from time to time by Arkansas law. "Single transaction" is defined according to the nature of the goods purchased as follows: A. When two or more devices in which, upon which or by which any person or property is, or may be, transported or drawn, including but not limited to on -road vehicles, whether required to be licensed or not, off -road vehicles, farm vehicles, airplanes, 411 water vessels, motor vehicles or non motorized vehicles and mobile homes, are sold to a person by a seller, each individual unit, whether part of a "fleet" sale or not, shall be treated as a single 0 transaction for the purpose of the Sales and Use Tax. B. The charges for utility services, which are subject to the Sales and Use Tax, and which are furnished on a continuous service basis, whether such services are paid daily, weekly, monthly or annually, for the purposes of the Sales and Use Tax, shall be considered to be a single transaction for the purposes of the Sales and Use Tax. C. For sales of building materials and supplies to contractors, builders or other persons, a single transaction, for the purposes of the Sales and Use Tax, shall be deemed to be any single sale which is reflected on a single invoice, receipt or statement, on which an aggregate sales (or use) tax figure has been reported and remitted to the State of Arkansas. D. When two or more items of major household appliances, commercial appliances, major equipment and machinery are sold, each individual unit shall be treated as a single transaction for the purpose of the Sales and Use Tax. E. For groceries, drug items, dry goods and other tangible personal property and /or services not otherwise expressly covered in this Section, a single transaction shall be deemed to be any single sale which is reflected on a single invoice, receipt or statement on which an aggregate sales tax figure has been reported and remitted to the State of Arkansas. Section 3. In the event the General Assembly shall define "single transaction," the General Assembly's definition shall replace the one in Section 2 hereof. Section 4. The questions of issuing the Bonds shall be placed on the ballot for the election in substantially the following form: The bonds described below that are approved may be combined into a single issue or may be issued in series at one time or from time to time. If the bonds for one or more of the purposes are approved, there will be levied a new 0.5% sales and use tax, the net collections of which remaining after the State of Arkansas deducts its administrative charge will be used solely to retire the bonds and obligations with respect thereto in accordance with Amendment No. 62 to the Arkansas Constitution. The tax will expire after the bonds have been paid or provision is made therefor in accordance with Arkansas statutes. The rate of taxation will be 0.5% even if bonds for more than one purpose are approved. STREET IMPROVEMENT BONDS AND 0.5% SALES AND USE TAX Vote FOR or AGAINST an issue of bonds of the City of Van Buren in the maximum principal amount of $10,325,000 for the purpose of financing all or a portion of the costs of streets, roads and bridges, including particularly, without limitation, constructing and improving the Rena Road Project and any paving, repair, curbing, gutter and drainage improvements, equipment and land acquisition and street lighting, utility improvements and traffic signals related thereto or in support thereof, and, in order to pay the bonds, the levy and pledge of a 0.5% local sales and use tax within the City. FOR the Street Improvement Bonds and 0.5% Sales and Use Tax AGAINST the Street Improvement Bonds and 0.5% Sales and Use Tax LIBRARY IMPROVEMENT BONDS AND 0.5% SALES AND USE TAX Vote FOR or AGAINST an issue of bonds of the City of Van Buren in the maximum principal amount of $1,700,000 for the purpose of financing all or a portion of the costs of library facilities, including particularly, without limitation, acquiring, constructing, equipping and furnishing library facilities, and any land acquisition and parking, street, drainage and utility improvements related thereto or in support thereof, and, in order to pay the bonds, the levy and pledge of a 0.5% local sales and use tax within the City FOR the Library Improvement Bonds and 0.5% Sales and Use Tax AGAINST the Library Improvement Bonds and 0.5% Sales and Use Tax 4 PARK AND RECREATIONAL FACILITIES BONDS AND 0.5% SALES AND USE TAX Vote FOR or AGAINST an issue of bonds of the City of Van Buren in the maximum principal amount of $4,475,000 for the purpose of financing all or a portion of the costs of park and recreational facilities, including particularly, without limitation, acquiring, constructing, equipping and furnishing a water park, and any land acquisition and parking, street, drainage and utility improvements related thereto or in support thereof, and, in order to pay the bonds, the levy and pledge of a 0.5% local sales and use tax within the City. FOR the Park and Recreational Facilities Bonds and 0.5% Sales and Use Tax AGAINST the Park and Recreational Facilities Bonds and 0.5% Sales and Use Tax COMMUNITY CENTER IMPROVEMENT BONDS AND 0.5% SALES AND USE TAX Vote FOR or AGAINST an issue of bonds of the City of Van Buren in the maximum principal amount of $2,800,000 for the purpose of financing all or a portion of the costs of community center facilities, including particularly, without limitation, acquiring, constructing, equipping and furnishing a community center consisting of meeting, fitness, entertainment and recreational facilities, and any land acquisition and parking, street, drainage and utility improvements related thereto or in support thereof, and, in order to pay the bonds, the levy and pledge of a 0.5% sales and use tax within the City. FOR the Community Center Improvement Bonds and 0.5% Sales and Use Tax AGAINST the Community Center Improvement Bonds and 0.5% Sales and Use Tax Section 5. 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 6. The results of the election shall be proclaimed by the Mayor, and his 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 7. A copy of this Ordinance shall be 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 8. The Mayor and City Clerk, for and on behalf of the City, be and they 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 9. That if any Bonds are approved, the City intends to negotiate with Morgan Keegan Company, Inc., which has assisted the City in preparation of the Bond size and repayment structure, for the sale of the Bonds that may be issued from time to time. Section 10. 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 11. All ordinances and parts thereof in conflict herewith are hereby repealed to the extent of such conflict. PASSED: April 18, 2005. APPROVED: ATTEST: C M a 'AP, �1 City Clerk (-SEAL