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|Related Year:||2020 ||
Ordinance #: 12-17-2020c
AN ORDINANCE CALLING A SPECIAL ELECTION IN THE CITY OF ELKINS, ARKANSAS ON THE QUESTIONS OF ISSUING BONDS UNDER AMENDMENT NO. 62 TO THE CONSTITUTION OF THE STATE OF ARKANSAS FOR THE PURPOSE OF FINANCING AND REFINANCING THE COST OF CAPITAL IMPROVEMENTS; LEVYING A THREE FOURTHS OF ONE PERCENT (0.75%) 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 Elkins, Arkansas (the “City“) has determined that the City is in need of extensions, betterments and improvements to the sewer facilities of the City‘s water and sewer system (the “Sewer Improvements“); and
WHEREAS, pursuant to a special election held June 24, 2014, the City issued and has outstanding its Sales and Use Tax Bonds, Series 2014 (the “2014 Bonds“); and
WHEREAS, the 2014 Bonds financed the costs of recreational facilities and are secured by and payable from collections of a 0.75% City–wide sales and use tax levied pursuant to Ordinance No. 03–20–2014A of the City adopted March 20, 2014 (the “2014 Tax“); and
WHEREAS, the City Council has determined that a portion of the Sewer Improvements can be financed without a tax increase if the 2014 Bonds are refunded, with the balance of the costs of the Sewer Improvements to be financed with proceeds of sales and use tax bonds secured by an existing 1% sales and use tax, if such bonds are separately approved by the voters and, if necessary, with proceeds of revenue bonds secured by water and sewer revenue; and
WHEREAS, the City Council proposes to finance a portion of the Sewer Improvements and accomplish the refunding of the 2014 Bonds (the “Refunding“) 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: (a) $5,500,000 in maximum principal amount for a portion of the Sewer Improvements and (b) $1,200,000 in maximum principal amount to accomplish the Refunding; and
WHEREAS, the City can pay the principal of and interest on the Bonds from collections of a City–wide 0.75% sales and use tax to be levied under the authority of the Authorizing Legislation that will replace the 2014 Tax, and
WHEREAS, the purpose of this Ordinance is to submit to the electors of the City the questions of issuing the Bonds to finance a portion of the Sewer Improvements and to accomplish the Refunding under Amendment 62 and the Authorizing Legislation at a special election to be called for that purpose and to levy a sales and use tax at the rate of three–fourths of one percent (0.75%) 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. $826–52 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 “2021 Tax” or the “Sales and Use Tax“);
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Elkins, Arkansas:
Section 1. There is hereby called a special election to be held on March 9, 2021, 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 accomplish the Refunding and to finance a portion of the costs of the Sewer Improvements in the maximum principal amounts described above, to be payable from collections of the Sales and Use Tax remaining after deduction of the administrative charges of the State of Arkansas and required rebates.
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 both purposes is approved by the voters, provided, however, that no Bonds will be issued unless the issuance of the Bonds for the Refunding is approved. The effective date of the 2021 Tax will be the day following the date the 2014 Tax expires. 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.
Section 3. 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 from time to time. If the bonds for one or both purposes are approved and one of such purposes is the Refunding Bonds, there will be levied a new 0.75% sales and use tax, the net collections of which remaining after the State of Arkansas deducts its administrative charges and required rebates, will be used solely to retire the bonds and obligations of the City with respect thereto. The tax will replace the City’s existing 0.75% sales and use tax levied in 2014 for the sole purpose of retiring bonds. The effective date of the new tax will be the day following the date the existing tax expires. The rate of taxation will be 0.75% even if bonds for both purposes are approved. No bonds will be issued for any purpose unless the Refunding Bonds are also approved. The 0.75% sales and use tax will expire after the bonds have been paid or provision is made therefor in accordance with Arkansas statutes.
Bonds of the City of Elkins in the maximum principal amount of $1,200,000 for the purpose of refunding the City‘s outstanding Sales and Use Tax Bonds, Series 2014 and, in order to pay the bonds, the levy and pledge of a 0.75% local sales and use tax within the City.
SEWER IMPROVEMENT BONDS
Bonds of the City of Elkins in the maximum principal amount of $5,500,000 for the purpose of financing a portion of the costs of extensions, betterments and improvements to the sewer facilities of the City‘s water and sewer system (the “Sewer Improvements“) and, in order to pay the bonds, the levy and pledge of a 0.75% local sales and use tax within the City. The balance of the costs of the Sewer Improvements will be financed with proceeds of sales and use tax bonds secured by an existing 1% sales and use tax, if such bonds are separately approved by the voters, and, if necessary, proceeds of revenues bonds secured by water and sewer revenues.
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 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 6. A copy of this Ordinance shall be filed with the Washington County Clerk at least 60 days prior to the date of the special election. A copy of this Ordinance shall be given to the Washington 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.
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 to perform all acts of whatever nature necessary to carry out the authority conferred by this Ordinance.
Section 8. When provision has been made for the retirement of the 2014 Bonds as a result of the issuance of the Bonds for the Refunding or otherwise, the 2014 Tax shall be abolished at the proper time so that the 2014 Tax and the 2021 Tax are not in effect at the same time. Collections of the 2014 Tax received after the date the Bonds are issued shall be used, if necessary or appropriate, to provide for the payment of the Bonds.
Section 9. All ordinances and parts thereof in conflict herewith are hereby repealed to the extent of such conflict.
PASSED: December 17, 2020.