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AN ORDINANCE CALLING A SPECIAL ELECTION IN THE CITY OF JONESBORO, 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 STREET AND ROAD IMPROVEMENTS; LEVYING A ONE PERCENT (1%) SALES AND USE TAX FOR THE PURPOSE OF RETIRING SUCH BONDS; PRESCRIBING OTHER MATTERS PERTAINING THERETO; AND DECLARING AN EMERGENCY.
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WHEREAS, the City Council of the City of Jonesboro, Arkansas (the "City") has determined that it would be in the best interest of the City to construct extensions, betterments and improvements to the streets and road which serve the City, with other related and ancillary improvements (the "Improvements"); and
WHEREAS, the City Council proposes to finance the costs of the Improvements by the issuance of capital improvement bonds in the aggregate principal amount of not more than $44,000,000 (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"); and
WHEREAS, the City can pay the principal of and interest on the Bonds from the receipts of a city-wide 1% 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 question 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 sales and use tax at the rate of one percent (1%) on the receipts from the sale at retail within the City of all items which are subject to taxation under the Arkansas Gross Receipts Tax Act of 1941, as amended (A.C.A. 26-52-101, et seq.), and the receipts from storing, using 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 "Tax"); and
WHEREAS, the Tax will be levied and collected only if the Bonds are approved;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Jonesboro, Arkansas:
SECTION 1: There is hereby called a special election to be held on February 7, 1995, at which election there shall be submitted to the electors of the City the question of issuing the Bonds under Amendment 62 and the Authorizing Legislation to accomplish the Improvements, in the aggregate principal amount of not to exceed $44,000,000, to be secured by collections of the Tax as set forth above. The tax will be collected only so long as the Bonds, or Bonds issued to refund such Bonds, are outstanding.
SECTION 2: In order to provide for the payment of the principal of and interest on the Bond, there is hereby levied the Tax. The levy of the Tax shall not become effective until the special election called in Section 1 above has been held and the issuance of the Bonds is approved by the voters. The Tax shall be levied and collected only to a maximum tax of $25.00 for each single transaction. "Single transaction" is defined according to the nature of the goods or services purchased as follows:
(A) When two or more devices in 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, 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 transaction for the purpose of the Tax.
(B) The charges for utility service, which are subject to the Tax and which are furnished on a continuous service basis, whether such services are paid daily, weekly, monthly or annually, shall be computed in daily increments, and each such daily charge increment shall be considered to be a single transaction for the purpose of the Tax.
(C) For sales of building materials and supplies to contractors, builders or other persons, a single transaction, for the purpose of the Tax, shall be deemed to be any single sale which is reflected on a single invoice, receipt or statement on which and 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 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: The question shall be placed on the ballot for the election in substantially the following form:
Vote on measure by placing an "X" in the square opposite the measure either for or against.
FOR an issue of bonds of the City of Jonesboro, Arkansas in the maximum amount of $44,000,000 for the purpose of constructing extensions, betterments and improvements to streets and roads, with related and ancillary improvements, and in order to pay the bonds, the levy and pledge of a 1% sales and use tax within the City
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AGAINST an issue of bonds of the City of Jonesboro in the maximum amount of $44,000,000 for the purpose of constructing extensions, betterments and improvements to streets and roads, with related and ancillary improvements, and, in order to pay the bonds, the levy and pledge of a 1% sales and use tax within the City
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The bonds, if approved, may be combined into a single issue or may be issued in series from time to time. If the bonds are approved, there will be levied a 1% sales and use tax, on the receipts from sales at retail and the storing, using or consuming of tangible personal property within the City. Proceeds of the bonds will be applied to pay the cost of street and road improvements, betterments and extensions, with other related and ancillary improvements, and paying costs incidental thereto. Particular projects, and the priorities assigned thereto, will be subject to recommendation by the City's Metropolitan Area Traffic Authority and to approval by the City Council of the City.
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 given to the Craighead 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 at the appropriate time.
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 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: The law firm of Friday, Eldredge and Clark is engaged to represent the City as bond counsel in the authorization and issuance of the Bonds.
SECTION 9: All Ordinances and parts thereof in conflict herewith are hereby repealed to the extent of such conflict.
SECTION 10: It is hereby ascertained and declared that there is an immediate need for the Improvements, in order to promote and protect the health, safety and welfare of the City and its inhabitants, and that the Improvements can be accomplished only by the issuance of the Bonds. It is, therefore, declared that an emergency exists and this Ordinance, being necessary for the immediate preservation of the public peace, health and safety, shall be in force and take effect immediately from and after its passage.
PASSED AND ADOPTED this 3rd day of January, 1995.