188640
ORDINANCE NO. 18,864
AN ORDNANCE TO CALL A SPECIAL ELECTION N THE CITY OF
LITTLE ROCK, ARKANSAS, ON THE QUESTION OF WHETHER TO LEVY
A ONE -HALF OF ONE PERCENT (0.5 %) MUNICIPAL GROSS RECEIPTS
AND COMPENSATING USE TAX WITHIN THE CITY OF LITTLE ROCK,
ARKANSAS, PURSUANT TO ARKANSAS CODE ANNOTATED § 26 -75-
201, ET. SE Q., TO BE USED FOR CAPITAL IMPROVEMENTS TO AND
MAINTENANCE OF STREETS AND DRAINAGE; TO PRESCRIBE OTHER
MATTERS THAT PERTAIN TO THE LEVY AND THE ELECTION; TO
DECLARE AN EMERGENCY; AND FOR OTHER PURPOSES.
WHEREAS, the Board of Directors of the City of Little Rock, Arkansas (the "City ")
having received petitions from citizens of the City calling for an election to adopt a local sales
and use tax to provide funds for improvements to and maintenance of streets and drainage, and in
partial response to various recommendations from the Vision -Little Rock process, has
determined that it would be in the best interests of the City to increase the funds available for
improvement and maintenance of streets and drainage for the City, and
WHEREAS, the City has determined that such additional funds are intended to be
supplemental to and not in substitution for or replacement of the moneys customarily budgeted
and appropriated by the City for street and drainage projects, and such additional funds can be
obtained through the levy of a one -half of one percent (0.5%) local sales and use tax pursuant to
the provisions of Act 25 of the First Extraordinary Session of 1981, as amended (Ark. Code Ann.
§26 -75 -201 et seq.) (the 'Infrastructure Tax," described herein) and
WHEREAS, the Infrastructure Tax would be levied and collected for a period of five (5)
years and the proceeds of the Infrastructure Tax would be expended only in accordance with the
provisions of this Ordinance and
WHEREAS, the Board of Directors desires to submit the question of the levy of the
Infrastructure Tax to the electors of the City at a special election to be called and held pursuant to
the laws of the State of Arkansas on July 22, 2003;
NOW, THEREFORE, be it ordained by the Board of Directors of the City of Little
Rock, Arkansas, to -wit:
Section 1. Levy. There is hereby levied a one -half of one percent (0.5%) local sales and
use tax (the "Infrastructure Tax "), to be used for capital improvements to and maintenance of
streets and drainage, contingent upon approval by the electors of the City of Little Rock,
Arkansas, at a special election to be held as provided in this Ordinance.
Section 2. Election. There is hereby called a special election to be held on Tuesday,
July 22, 2003, at which election there shall be submitted to the electors of the City the question
of whether to approve the levy of the Infrastructure Tax, and the question of levying the
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Infrastructure Tax shall be placed on the ballot for the election in substantially the following
form:
[BALLOT FORM)
AUTHORIZATION AND APPROVAL OF THE LEVY OF A ONE -HALF OF
ONE PERCENT (0.5 %) LOCAL SALES AND USE TAX WITHIN THE CITY OF
LITTLE ROCK, ARKANSAS, TO BE USED FOR CAPITAL IMPROVEMENTS
TO AND MAINTENANCE OF STREETS AND DRAINAGE FOR THE CITY,
WHICH LEVY SHALL EXPIRE DECEMBER 31, 2008.
The authorization and approval of the levy of a one -half of one percent (0.5 %) local sales
and use tax within the City of Little Rock, Arkansas, contained in Ordinance No. adopted
May 13, 2003, which levy shall expire December 31, 2008. The net collections of the local sales
and use tax after deduction of the administration charges of the State of Arkansas, shall be used
for capital improvements to and maintenance of streets and drainage for the City, and for no
other purpose. The local sales and use tax shall be levied under the Arkansas Gross Receipts
Tax Act of 1941, as amended, and the receipts from storing, using or consuming with the City
tangible personal property under the Arkansas Compensating Tax Act of 1949, as amended.
VOTE ON THE MEASURE BY PLACING AN "X" IN THE SQUARE OPPOSITE THE
MEASURE EITHER FOR OR AGAINST:
FOR adoption of a one -half of one percent (0.5 %) local sales and use tax within
the City of Little Rock, Arkansas, to be used for capital improvements to and
maintenance of streets and drainage ......................................................... ............................... ❑
AGAINST adoption of a one -half of one percent (0.5 %) local sales and use tax
within the City of Little Rock, Arkansas, to be used for capital improvements to
and maintenance of streets and drainage .................................................. ............................... ❑
Definitions. As used herein:
(A) The term "street" means the entire width between boundary lines of a publicly
maintained way or property when any part thereof is open to the public for purposes of
vehicular or pedestrian travel, including all lighting, traffic controls, bridges, appurtenances,
sidewalks, landscaping, and drainage thereof.
(B) The term "drainage ", when not used with reference to streets, means storm sewers
and conduits, ditches, natural watercourses, channels, and other places where surface water
causes neighborhood flooding.
(C) The terms "capital improvements" and "maintenance" include, but are not limited
to, the design and engineering of street and drainage projects, and acquisition of real property,
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mandated by Federal or State law or otherwise necessary to achieve the purposes for which the
Infrastructure Tax is levied and collected.
[END OF BALLOT]
Section 3. Voting. The election shall be held and conducted, and the vote canvassed and
the results declared, under the law in the manner now provided for municipal elections and only
qualified voters of the City shall have the right to vote at the election on this issue.
Section 4. Publication. 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
within the City, which Proclamation shall advise that the results as proclaimed shall be
conclusive unless challenged in court within thirty (30) days after the date of publication.
Section 5. Administration. (A) A copy of this Ordinance shall be given to the Pulaski
County Board of Election Commissioners so that the necessary election officials and supplies
may be provided in time for the election described in Section 2 of this Ordinance. A copy of the
Ordinance shall also be provided to the Commissioner of Revenues of the State of Arkansas as
soon as practical.
(B) 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 levy of the Infrastructure Tax is approved by the electors, to cause the
Infrastructure Tax to be collected in accordance with Ark. Code Ann. §§ 26 -75 -201, et. sec. as
may be amended, and to perform all acts of whatever nature necessary to carry out the authority
conferred by this Ordinance.
Section 6. Sunset. The term of this Ordinance shall end at midnight, December 31, 2008
after which date the levy and collection of the Infrastructure Tax shall cease and this Ordinance,
except for Sections 7 and 8 hereof, shall not be in force or effective.
Section 7. Appropriation. (A) The funds collected pursuant to this Ordinance shall be
deposited and maintained in a separate fund of the City, within the City's fund balances, entitled
2003 Sales Tax Capital Improvement and Maintenance Fund, and used solely for the purposes
set forth within this Ordinance, and shall be appropriated by the City Board of Directors for at
least one of the following purposes:
(1) resurfacing and rehabilitation of existing streets, of any classification,
having base or sub -base deterioration; or,
(2) resurfacing of streets, of any classification, other than those described in
sub - paragraph (a) hereof; or,
(3) modification and rehabilitation of streets, of any classification, to improve
public safety; or,
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(4) relieving chronic neighborhood flooding;
(5) improving traffic flow or relieving traffic congestion; or,
(6) capital improvements for streets, of any classification, serving two or more
wards of the City.
Provided however, no funds collected pursuant to this Ordinance shall be used for construction
of streets or drainage projects of the City for which other funds of the City that have been
appropriated or pledged previously, whether directly or to the payment of capital improvement
bonds of the City, such as, by way of example, the Presidential Park; John Barrow signal and
street widening; Cantrell /Sam Peck and Col. G1enn/Shackleford Road signals; and the Third and
Commerce streetscape, all of which are either presently under construction or are scheduled for
completion by the end of 2003.
(B) Recognizing that the Vision -Little Rock Report has determined that necessary street
and drainage maintenance and improvements are disproportionate among wards of the City, and
further recognizing that equitable use of funds collected pursuant to this Ordinance is desirable,
not less than 10% of the total funds collected pursuant to this Ordinance shall be appropriated for
street and drainage maintenance and improvements in any one ward of the City.
(C) The provisions of this section are directive and intended to express this Board of
Directors' intent, and shall not be interpreted or implemented in contradiction of Article 12
Section 4 of the Constitution of Arkansas.
Section 8. Oversight. The Board of Directors hereby declares its intention to account for
the expenditures of the Infrastructure Tax through the promulgation of rules and regulations; the
creation and establishment of an oversight committee; and by other means not inconsistent with
the purposes of this Ordinance.
Section 9. Limitation. The Board of Directors hereby declares, covenants and affirms
that:
(A) All proceeds derived from the collection of the Infrastructure Tax shall constitute
an additional source of revenue from which capital improvements to and maintenance of streets
and drainage for the City shall be accomplished; and
(B) Until all proceeds of said Infrastructure Tax have been fully collected and
expended, except as may be necessary in the events of Acts of God, terrorists acts or acts of war:
(1) all money in the City Street Fund derived from the 3 Mil Road Tax and
Gasoline Turn Back Funds (identified respectively as "General Property
Taxes" and "Intergovernmental" in the Street Fund section of the City's
Comprehensive Annual Financial Report for the year ended December 31,
2001) shall be expended exclusively for capital improvements to and
maintenance of streets and drainage for the City; and
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(2) the City shall not intentionally or willfully divert, redirect or re-
appropriate moneys from the Street Fund or the Infrastructure Tax for
purposes other than capital improvements to and maintenance of streets
and drainage for the City.
Section 10. Single Transaction Defined.
(A) The Infrastructure Tax authorized by this Ordinance shall be levied and collected
only on the first two thousand five hundred dollars ($2,500.00) of gross receipts, gross proceeds,
or sales price from each single transaction as provided in Ark. Code Ann. § 26 -75 -222, as may
be amended.
(B) In the event the Arkansas General Assembly shall define "single transaction,"
such definition shall replace the one contained in this ordinance.
(C) "Single transaction' is defined according to the nature of the goods purchase as
follows:
(1) 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, farm vehicles,
off -road 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 sales and use tax;
(2) The charges for any 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, shall be computed in
daily increments and each such daily charge increment shall be considered
to be a single transaction for the purposes of the sales and use tax;
(3) Except as provided in (6) below, for sales of building materials and
supplies to contractors, builders or other persons, a single transaction for
the purpose 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;
(4) 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;
(5) For groceries, drug items, dry goods and other tangible personal property,
or services, or a combination personal property and 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
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statement, on which an aggregate sales tax figure has been reported and
remitted to the State of Arkansas;
(6) When applied to the construction of any single family residential structure,
the erection of which requires the issuance of a building permit from the
City, a single transaction shall be considered to be the completed structure.
As long as Section 10(C)(6) of this Ordinance is in effect, the sales and
use tax shall be levied on the final cost of the materials purchased to build
a structure as identified in the Section rather than upon the incremental
sales of materials in such construction. Any person entitled to a rebate of
excess tax paid shall present a claim. The claim shall be duly verified
according to law and accompanied by (a) a case receipt or invoice
showing the amount of sales and use tax charged and (b) proof of payment
of the sales and use tax. There shall be only one claim per single family
structure which must be presented within sixty (60) days of completion of
the structure. If the claim is allowed, the City Treasurer shall refund to the
claimant the excess sales and use tax paid.
Section 11. Severability. In the event any title, section, subsection, subdivision,
paragraph, subparagraph, item, sentence, clause, phrase, or word of this Ordinance is declared or
adjudged to be invalid or unconstitutional, such declaration or adjudication shall not affect the
remaining portions of the Ordinance which shall remain in full force and effect as if the portion
so declared or adjudged invalid or unconstitutional was not originally a part of the Ordinance.
Section titles are for identification only and do not constitute operative parts of this Ordinance.
Section 12. Repealer. All ordinances, resolutions, bylaws, and other matters
inconsistent with this Ordinance are hereby repealed to the extent of such inconsistency.
Section 13. Emergency. Whereas streets and drainage within the City are in substantial
need of repair and, sufficient funds are not available or anticipated to be available for capital
improvements to and maintenance of streets and drainage, and the Board of Directors declares
that it is essential to the public health, safety and welfare to conduct an election as soon as
possible on the question of whether to approve the levy of the Infrastructure Tax, therefore an
emergency is declared to exist and this Ordinance shall be in full force and effect from and after
the date of its passage.
PASSED: May 13, 2003 APPROVED:
Jim V iley, Mayor
ATTESTED:
Nan Wood, ity Clerk
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APPROVED AS TO LEGAL FORM:
Thomas M. Carpenter, City Altomey
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