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|Related Year:||2021 ||
Ordinance #: 2021-01
AN ORDINANCE AMENDING ORDINANCE NO. 07–07–2008B IN ORDER TO AUTHORIZE THE NET COLLECTIONS OF AN EXISTING 1% SALES AND USE TAX LEVIED WITHIN THE CITY OF ELKINS, ARKANSAS BY ORDINANCE NO. 07–07–2008B TO BE USED (A) FIRST, TO PAY AND SECURE THE REPAYMENT OF BONDS APPROVED BY THE VOTERS AND ISSUED BY THE CITY FROM TIME TO TIME TO FINANCE AND REFINANCE CAPITAL IMPROVEMENTS AND (B) IF NO SUCH BONDS ARE OUTSTANDING, FOR GENERAL OPERATIONS AND OTHER PURPOSES OF MUNICIPAL GOVERNMENT; REPEALING ORDINANCE NO. 12–17–2020A; AND PRESCRIBING OTHER MATTERS RELATING THERETO.
WHEREAS, pursuant to Ordinance No. 07–07–2008B, adopted July 7, 2008 (“Ordinance No. 07–07–2008B“), and an election held September 9, 2008, the City of Elkins (“City“) has levied a City–wide 1% sales and use tax (the “Tax“); and
WHEREAS, Ordinance No. 07–07–2008B authorizes the net collections of the Tax to be used to pay debt service on the City‘s Sales and Use Tax Bonds, Series 2012 (the “Series 2012 Bonds“), which were issued to finance the construction of betterments and improvements to the City‘s water and sewer system (the “System“); and
WHEREAS, pursuant to Ordinance No. 07–07–2008B, collections of the Tax received by the City after the Series 2012 Bonds are retired must be deposited into the City‘s general fund; and
WHEREAS, the Series 2012 Bonds were retired on November 20, 2020, and net collections of the Tax since December 2020 have been deposited into the City‘s general fund; and
WHEREAS, the City Council has determined that it would be in the best interest of the City to issue bonds (the “Bonds“) to finance a portion of the costs of extensions, betterments and improvements to the sewer facilities of the System and to secure the Bonds with a pledge of collections of the Tax; and
WHEREAS, it is necessary to amend Ordinance No. 07–07–2008B to change the purposes for which the net collections of the Tax may be used in order for the Bonds to be secured by Tax receipts;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Elkins, Arkansas:
Section 1. The title of Ordinance No. 07–07-2008B is hereby amended to read as follows:
“AN ORDINANCE PROVIDING FOR THE LEVY OF A ONE PERCENT (1%) SALES AND USE TAX WITHIN THE CITY OF ELKINS, ARKANSAS TO BE USED (A) FIRST, TO PAY AND SECURE THE REPAYMENT OF BONDS APPROVED BY THE VOTERS AND ISSUED BY THE CITY FROM TIME TO TIME TO FINANCE AND REFINANCE CAPITAL IMPROVEMENTS AND (B) IF NO SUCH BONDS ARE OUTSTANDING, FOR GENERAL OPERATIONS AND OTHER PURPOSES OF MUNICIPAL GOVERNMENT; AND PRESCRIBING OTHER MATTERS PERTAINING THERETO.”
Section 2. The WHEREAS clauses of Ordinance No. 07–07–2008B are hereby amended to read as follows:
“WHEREAS, the City Council of the City of Elkins, Arkansas (the “City“) has determined that the City is in need of a source of revenue for the following: (a) to pay and secure the repayment of bonds approved by the voters and issued by the City from time to time for the purpose of financing and refinancing capital improvements (“Capital Improvement Bonds“) and (b) for general operations and other purposes of municipal government (“General Operations“); and
WHEREAS, Title 26, Chapter 75, Subchapter 3 of the Arkansas Code of 1987 Annotated (the “Authorizing Legislation“) provides for the levy of city–wide sales and use taxes at the rate of 0.125%, 0.25%, 0.5%, 0.75%, or 1%, or any combination thereof; and
WHEREAS, the City is not currently levying a city–wide sales and use tax under the authority of the Authorizing Legislation; and
WHEREAS, the purpose of this Ordinance is to levy a city–wide sales and use tax at the rate of 1%, the net collections of which will be used as follows: (a) first, to pay and secure the repayment of Capital Improvement Bonds and all obligations of the City with respect thereto and (b) if no Capital Improvement Bonds are outstanding, for General Operations (collectively, “Designated Uses“);”
Section 3. Section 1 of Ordinance No. 07-07-2008B is hereby amended to read as follows:
“Section 1. Under the authority of the Authorizing Legislation, there is hereby levied a one percent (1%) tax on the gross receipts from the sale at retail within the City of all items which are subject to the Arkansas Gross Receipts Act of 1941, as amended (A.C.A. S$26–52–101, et seq.), and the imposition of an excise (or use) tax on the storage, use, distribution or other consumption within the City of tangible personal property subject to the Arkansas Compensating Tax Act of 1949, as amended (A.C.A. $$26–53–101, et seq.), at a rate of one percent (1%) of the sale price of the property or, in the case of leases or rentals, of the lease or rental price (collectively, the “Sales and Use Tax“). 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 4. Section 2 of Ordinance No. 07–07-2008B is hereby amended to read as follows:
“Section 2. 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 by the City for Designated Uses as follows: (a) first, to pay and secure the repayment of Capital Improvement Bonds and all obligations of the City with respect thereto and (b) if no Capital Improvement Bonds are outstanding, for General Operations.”
Section 5. Sections 3 through 9 of Ordinance No. 07–07–2008B are hereby deleted.
Section 6. The provisions of this Ordinance are hereby declared to be separable, and if any provision shall for any reason be held illegal or invalid, it shall not affect the validity of the remainder of this Ordinance.
Ordinance No. 07–07–2008B, as amended hereby, shall remain and be in Section 7. full force and effect.
Ordinance No. 12–17–2020A of the City, adopted December 17, 2020, is Section 8. hereby repealed.
Jan 21, 2021
The undersigned, City Clerk of Elkins, Arkansas, hereby certifies that the foregoing pages are a true and perfect copy of Ordinance No. 2021-01 passed at a regular session of the City Council of Elkins, Arkansas, held at 7 o‘clock p.m., on the 21st day of Janruary 2021, and that the Ordinance is of record in Ordinance Record Book No.2021-01 now in my possession.