ORDINANCE NO. 01-16-2020-A – Tanker Truck Purchase

Ordinance #: 01-16-2020-A

AN ORDINANCE REGARDING A LEASE PURCHASE AGREEMENT FOR THE PURPOSE OF FINANCING AN INTERNATIONAL MV 2200 GALLON TANKER FIRE TRUCK.

WHEREAS, the City of Elkins desires to enter into a Lease-Purchase Agreement by and between the City of Elkins and Arvest Bank, for the purpose of financing an International MV 2200 Gallon Tanker Fire Truck. The Elkins Volunteer Fire Department desires to designate the obligations evidenced by the Agreement as “short-term financing obligations” authorized by Amendment 78 of the Arkansas Constitution Act 1808 of the Acts of Arkansas 2001. The obligations evidenced by this Agreement, along with all other “short-term financing obligations” issued by Arvest Bank equal five percent (5%) or less of the assessed value of taxable property located within the municipality as determined by the last tax assessment completed prior to the issuance of this Agreement. The Elkins Volunteer Fire Department desires to designate this Agreement as a “qualified tax exempt obligation” of the Elkins Volunteer Fire Department for the purposes of Section 265 (b) (3) of the Internal Revenue Code of 1986, as amended. The Elkins Volunteer Fire Department desires to designate the Mayor or his designee, as an authorized signer of the Agreement.

NOW, THEREFORE, BE IT HEREBY ORDAINED by the City Council of the City of Elkins Arkansas:

Section 1, That the City of Elkins Volunteer Fire Department enters into a Lease Agreement with Arvest Bank for the purpose of financing an International MV 2200 Gallon Tanker Fire Truck.

Section 2. That the City of Elkins Volunteer Fire Department desires to designate the obligations evidenced by the Lease Purchase Agreement dated ___________________ , by and

between the City of Elkins and Arvest Bank as “Short-term Financing obligation” authorized by Amendment 78 of the Arkansas Constitution and Act 1808 of the Acts of Arkansas 2001. The obligations evidenced by this Agreement, along with all other “short-term financing obligations” issued equal five percent (5%) or less of the assessed value of taxable property located within the municipality as determined by the last tax assessment completed prior to the issuance of the Agreement.

Section 3. That the Lease Purchase Agreement dated _____________________ , by and between the City of Elkins and Arvest Bank is designated by the Elkins Volunteer Fire Department as a “qualified tax exempt obligation” for the purposes of Section 265 (b) (3) of the Internal Revenue Code of 1986, as amended.

Section 4. That the City of Elkins Volunteer Fire Department designates the Mayor his designee, as an authorized signer of the Lease Purchase Agreement dated as of     16th day of January, by and between the City of Elkins and Arvest Bank.