HomeMy WebLinkAbout6869i M M M M M M M M M M= M M M
RESOLUTION NO.- 6,869
A RESOLUTION AUTHORIZING THE MAYOR TO
ENTER INTO A CONTRACT APPLYING FOR
STATE FINANCIAL ASSISTANCE FOR TOURIST
MEETING FACILITIES AND TOURIST ENTERTAIN-
MENT FACILITIES; AND FOR OTHER PURPOSES.
WHEREAS, Act 763, Acts of Arkansas of 1977, as
amended, cited as the "City- County Tourist Meeting and
Entertainment Facilities Assistance Law," authorizes finan-
cial assistance to qualifying cities and counties for
constructing and /or securing tourist and entertainment
facilities; and,
WHEREAS, the General Assembly, in the enactment
of said legislation, found and determined that "it is in
the interest of both the State and its Cities and Counties
for the State to assist any City or County in financing
tourist meeting facilities and tourist entertainment facili-
ties by paying to the City or County a portion of the increased
State Sales Tax revenues and State Income Tax revenues
attributable thereto as in this Act provided "; and,
WHEREAS, the City now has under construction and
nearing completion in the said City "tourist meeting
facilities" being a convention /meeting hall facility known
as the "STATEHOUSE CONVENTION CENTER COMPLEX" and has made
appropriate application to the STATE for financial assistance
for said facilities all in keeping and conformance with
provisions of said legislation; and,
WHEREAS, the State will hold a public hearing on
October 6, 1982, on the City's application for assistance.
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
CITY OF LITTLE ROCK, ARKANSAS:
Section 1, The Mavor of the City of Little Rock
is hereby authorized to enter into the contract attached as
Exhibit "A" for state financial assistance.
138
139
Section 2. This Resolution shall be in full force
and effect from and after its adoption and approval.
ADOPTED: October 5, 1482
ATTEST: APPROVED:
CLE.R YOR
-2-
a • • qq
A G R E E 1. E N T 1` 0
THIS AGREEMENT made and entered into this —.C— day of
19 e� by and between the State Board of Finance,
an Agency of the State of Arkansas (hereinafter called "STATE ") and
the City of Little Rock, Arkansas, a city of the first class organized
and existing pursuant to the laws of the State of Arkansas (herein-
' after called "CITY "):
W I T N E S S E T H
a
WHEREAS, Act 763, Acts of Arkansas of 1977, as amended, cited
5
I•
7
as the "City- County Tourist Meeting and Entertainment Facilities Assis-
tance Law," authorizes financial assistance to qualifing cities and
counties for constructing and /or securing tourist and entertainment
facilities; and,
WHEREAS, the General Assemmbly, in the enactment of said legis-
lation, found and determined that "it is in the interest of both t'ne
State and its Cities and Counties for the State to assist any City or
County in financing tourist meeting facilities and tourist entertain-
ment facilities by paying to the City or County a portion of the
increased State Sales Tax revenues and State Income Tax revenues attri-
butable thereto as in this Act provided;" and,
WHEREAS, the CITY now has under construction and nearing
completion in the said City "tourist meeting facilities" 'being a
convention /meeting hall facility known as the "STATEHOUSE CONVENTION
CENTER COMPLEX" and has made appropriate application to the STATE
for financial assistance for said facilities all in keeping and
conformance with provisions of said legislation; and,
WHEREAS, the STATE, after notice and in keeping with a11.
other provisions of said Act 763, as amended, held a public hearing on
October 6, 1982 on the CITY'S application and following such public
hearing made the following findings and determinations:
(a) That the tourist meeting facilities of and by the CITY,
now under construction and nearing completion, are eligible facilities
and are financed by the CITY through the issuance of Twenty -seven
million, three hundred seventy -five thousand ($27,375,000.00) do.1l,rr:
4
141
of City of Little Rock, Arkansas `Motel and Restaurant Gross Receipts
Tax Bonds (Little Rock Convention Center Project), Series 1980 pur-
suant to authority of Act 380, Acts of Arkansas of 1971, as amended;
that the financing of such facilities through a combination of the
CITY'S bonds and state assistance under said Act 763, as amended, is
in the best interest of the City and the State and the City's
application should be approved.
(b) That the additional State Sales and Income Tax revenues to
be derived from the CITY'S tourist meeting facilities is estimated
and projected and found to be $794,470.00 for the calendar year 1983
and $917,588.00 for the calendar year 1984.
(c) That the investment multiplier for computing additional
a
State Sales and Income Tax revenues is fixed at 4x.
(d) That the debt service requirements of the CITY for the
bonds issued to finance these facilities for the years 1980 through
2014 are set forth on Exhibit "A" attached hereto and made a part
hereof as though set out herein word for word.
a
(e) That the State assistance shall be two /thirds (2/3) of the
additional State Sales and Income Tax revenues herein estimated and
projected to be generated by the facilities annually, but in no case
shall such exceed eighty (80 %) percent of the annual debt service on
the bonds issued to finance the facilities.
NOW THEREFORE, THE PARTIES HERETO MUTUALLY AGREE AS FOLLOWS:
I
The STATE hereby covenants and agrees to pay to the CITY For
debt services as reflected by Exhibit "A" attached hereto on the
CITY'S bonds hereinabove described issued to finance the tourist
meeting facilities an amount equal to two- thirds (2/3) of the
additional State Sales and Income Tax revenues hereinabove estimated
and projected to be generated by said tourist facilities as described
in the CITY'S application, but not more than eighty (80 %) percent of
the annual debt service requirements of said bonds. The CITY'S
application for State assistance is attached hereto as Exhibit "B" and
is made a part hereof as though set out herein word for word.
N
142
II
The STATE hereby covenants and agrees that it will certify to
the State Treasurer the amount of assistance to be paid the CITY
which.the STATE hereby agrees to be the sum of $529,117.00 for the
calendar year 1983 and the sum of $611,114.00 for calendar year 1984
and directs the said Treasurer to make quarterly payments to said
CITY from the "City- Counties Tourist Facilities Aid Fund" estab-
lished pursuant to the provisions of Act 763, Acts of Arkansas of
1971, as amended. It is understood by the Parties that the CITY
will recertify, at the beginning of each two year term that this
Agreement is extended, if any, for the STATE'S consideration and
determination, the additional State sales and income tax revenues to
be generated by said tourist meeting facilities of the CITY during
I
the ensuing term all for the purpose of computing the amount of state
assistance to be paid the CITY for said ensuing term. Converted
from calendar year to fiscal year basis, the amount the State hereby
agrees to pay the City is as follows:
(a) The sum of $264,558.00 for the period of January 1, 1983 to
July 1, 1983, being the last six (6) months of fiscal year 1982 -1983.
(b) The sum of $264,558.00 for the period of July 1, 1983 to
January 1, 1984, being the first six (6) months of fiscal year
1983 -1984.
(c) The sum of $305,557.00 for the period of January 1, 1984 to
July 1, 1984 being the last- six (6) months of fiscal year 1983 -1984.
(d) The sum of $305,557.00 for the period of July 1, 1984 to
January 1, 1985, being the first six (6) months of fiscal year
1984 -1985.
(e) The sum of $354,774.00 for the period of January 1, 1985 to
July 1, 1985, being the last six (6) months of fiscal year 1984 -1985.
III
Payment of such assistance funds by the STATE shall be made to
the Trustee designated by the holder of the CITY'S bonds (Commercial
National Bank of Little Rock, or its successor) and said Trustee shall
apply all such funds received from said City- County Tourist Facilities
Aid Fund to the payment of or redemption of said bonds of the CITY
and to the payment of interest thereon. CITY covenants that any
remaining funds received from the STATE after retirement of said
bonds shall be returned forthwith to the State Treasurer.
I
IV
143
Payment of assistance funds as provided for herein is subject to
approval by and appropriation of the General Assembly of the State of
Arkansas and nothing herein contained shall be construed to be a
demand of the General Assembly to make any appropriation pursuant to
said Act 763, as amended, or to prohibit the General Assembly from
amending or repealing the said Act at any time.
V
The term of this Agreement shall be for two (2) years commencing
January 1, 1983, but subject to approval of the General Assembly, wi1L
be extended from time to time for additional terms, which additional_
p
terms shall not exceed two (2) years.
This Agreement may be executed in any number of counterparts,
each of which when so executed and delivered shall constitute an
original, but all of which together shall constitute one and the same
Agreement.
Dated the day, month and year first above mentioned.
ATTEST:
ATTEST:
STATE BOARD OF FINANCE
BY vernor
G vernor
CITY OF LITTLE ROCK, ARKANSAS
BY
Mayor
M- M
17
EXHIBIT "A"
M M ® M
0
Debt Service requirements on the Bonds are as follows:
PERIOD ENDING
DECEMBER 31
1980 .................
1981 .................
1982 .................
1983 .................
1984 .................
1985 .................
1986 .................
1987 .................
1988 .................
1989 .................
1990 .................
1991 .................
1992 .................
1993 .................
1994 .................
1995 .................
1996 .................
1997 .................
1998 .................
1999 .................
2000 .................
2001 .................
2002 .................
2003 .................
2004 .................
2005 .................
2006 .................
2007 .................
2008 .................
2009 .................
2010 .................
2011 .................
2012 .................
2013 .................
2014 .................
TOTAL
MATURITIES
(Including Sinking
Fund Redemption)
$ 195,000
210,000
225,000
240,000
255,000
275,000
300,000
325,000
350,000
380,000
410,000
445,000
485,000
525,000
575,000
630,000
690,000
760,000
835,000
915,000
1,005.000
1,100,000
1,210,000
1,325,000
1,455,000
1,600,000
1,755,000
1,925,000
2,115,000
2,320,000
2,540,000
$27,375,000
INTEREST
$ 859,835
2,579,505
2,579,505
2,579,505
2,579,505
2,566,342
2,551,642
2,535,330
2,517,330
2,497,695
2,476,108
2,452,108
2,425,620
2,396,570
2,364,650
2,329,800
2,291,976
2,250,750
2,199,562
2,143,500
2,082,075
2,014,800
1,940,700
1,859,283
1,770,075
1,672,088
1,564,838
1,446,862
1,317,676
1,.175,812
1,019,812
848,700
661,012
454,800
228,600
$67,233,975
144
TOTAL
$ 859,835
2,579,505
2,579,505
2,579,505
2,774,505
2,776,342
2,776,642
2,775,330
2,772,330
2,772,695
2,776,] -08
2,777,108
2_,775,620
2,776,570
2,774,650
2,774,600
2,776,975
2,775,750
2,774,562
2,773,500
2_,772,075
2,774,800
2,775,700
2,774,283
2,775,075
2,772,088
2,774,838
2,772,862
2,772,675
2,775,812
2,774,812
2,773,700
2,776,012
2,774,800
2,768,600
94,608,975
7
State Board of Finance
State of Arkansas
State Capitol
Little Rock, AR 72201
City Hall
Markham & Bmawl�y Sts.
Little Rock, AR 72201
(501) 371 -4513
Attention: Honorable Frank White, Chairman
EXHIBIT "B"
August 16, 1982
145
Ladies and Gentlemen:
As provided in Act 763, Acts of Arkansas of 1977, as amended, the City
of Little Rock, Arkansas submits this, its application, to the Board of
Finance for State assistance in the development and construction of a
convention /meeting hall facility known and referred to herein as
"Statehouse Convention Center Complex."
ELIGIBLE FACILITIES
The facilities (Project) now nearing completion consist of (i)
acquisition of land; (ii) construction of a three -story building
containing an Exhibit hall, Meeting Rooms, Convention Center offices and
certain support facilities for the hotel also being privately con-
structed on the site; and (iii) a Conference Center to be operated by
the University of Arkansas.
The facilities are situated on land bounded on the East by Main Street,
on the South by Markham Street, on the West by Ashley Street and on thr,
North by Riverfront Park and the Arkansas River. The f.acil.i.ti.es consic =;t
of three levels; the La Harpe level, the Markham level, the Ballroom
level, with the Conference Center extending to all three levels on they
3
1'4 6
Page 2 - Application
North. The La Harpe level ,contains approximately 130,000 square feet,
including an Exhibit Hall of approximately 62,000 square feet which can
be subdivided into three (3) sections. In addition to the Exhibit Hall,
the La Harpe level contains seven (7) meeting rooms of various sizes, a
large lobby area serving the Exhibit Hall and the Meeting Rooms, an
Exhibit Hall maintenance area and offices, a large crate storage area
and other ancillary spaces. The Markham level contains the main
entrance to the Exhibit Hall with a covered drive and Entry Plaza,
Convention Center offices and area to serve the hotel constructed on the
site. The Ballroom level consists of approximately 12,000 square feet
of ballroom divisible into three rooms. The Conference Center contains
approximately 42,000 square feet.
NEED FOR THE FACILITIES
During 1971, 1972 and the first half of 1973 the Robinson Auditorium in
Little Rock, Arkansas was renovated when the Camelot Inn was construc-
ted. On June 1, 1973 the Camelot Inn opened and in September 1973 the
Little Rock Convention Center (formerly Robinson Auditorium) opened pro-
viding 27,397 square feet of exhibit hall space, of which 14,360 square
feet is on the main level, ten (10) meeting rooms and a Music Hall with
a seating capacity of 2,645. Statistics reflect the number of conven-
tions in the City of Little Rock increased steadily through 1975. In
1975 as the result of near full utilization of existing facilities, the
City's convention business reached a plateau. Several large regional
conventions were hosted at the Convention Center in 1974 through 1979
which were unable to return Co the City because they had outgrown Ch.
147
l
Page'3 - Application
existing facilities. Many of these meetings have now been rescheduled
in the Statehouse Convention Center Complex.
As is noted in the official statement for the Bond Indenture (referred
to hereinafter in the financial portion of this Application) there are
approximately eleven (11) State, thirty -three (33) Regional and five
hundred twenty -five (525) National meetings that could not meet here
prior to the construction of the Statehouse Convention Center Complex.
With the new Complex, we are now in a position to accommodate and bring
these groups to Little Rock. Further, we are now actively soliciting
these various conventions and as a result of this activity, the entire
State will benefit.
In October of 1979, the Sales Staff of the Little Rock Bureau for
Conventions and Visitors, the operating office for the Statehouse
Convention Center Complex, was increased from two persons to three sales
representatives, director of sales, sales secretary and director of
services. This has enabled the Bureau to expand its sales efforts which
is directly responsible for business booked into the Statehouse
Convention Center Complex.
FINANCING
To finance these facilities the City has issued, pursuant to authority
of Act 380 of the Acts of Arkansas, 1971, as amended, $27,375,000.00
City of Little Rock, Arkansas Hotel and Restaurant Gross Receipts Tar:
Bonds (Little Rock Convention Center Project), Series 1980.
The bonds are secured by a mortgage on the land and improvements rind
P1,!drJ , 0r:1
J
P
0
V
148
Page 4 - Application
(a) Amounts received by the City from the hotel and
restaurant gross receipts tax;
(b) Gross receipts derived by the City from the operation
of the existing Robinson Auditorium Center and these
Statehouse Convention Center Complex facilities;
(c) Rental payments to the City by the owner of the hotel
being constructed on the site; and
(d) Amounts, if any, constituting State turn back revenues.
Debt service requirements on the Bonds are as follows:
MATURITIES
PERIOD ENDING
(Including Sinking
DECEMBER 31
Fund Redemption)
INTEREST
TOTAL
1980 .................
$ 859,835
$ 859,835
1981 .................
2,579,505
2,579,505
1982 .................
2,579,505
2,579,505
1983 .................
2,579,505
2,579,505
1984 .................
$ 195,000
2,579,505
2,774,505
1985 .................
210,000
2,566,342
2,776,342
1986 .................
225,000
2,551,642
2,776,642
1987 .................
240,000
2,535,330
2,775,330
1988 .................
255,000
2,517,330
2,772,330
1989 .................
275,000
2,497,695
2,772,695
1990 .................
300,000
2,476,108
2,776,108
1991 .................
325,000
2,452,108
2,777,108
1992 .................
350,000
2,425,620
2,775,620
1993 .................
380,000
2,396,570
2,776,570
1994 .................
410,000
2,364,650
2,774,650
1995 .................
445,000
2,329,800
2,774,800
1996 .................
485,000
2,291,976
2,776,975
1997 .................
525,000
2,250,750
2,775,750
1998 .................
575,000
2,199,562
2,774,562
1999 .................
630,000
2,143,500
2,773,500
2000 .................
690,000
2,082,075
2,772,075
2001 .................
760,000
2,014,800
2,774,800
2002 .................
835,000
1,940,700
2,775,700
2003 ..................
915,000
1,859,288
2,774,288
2004 .................
1,005.000
1,770,075
2,775,075
2005 .................
1,100,000
1,.672,088
2,772,088
2006 .................
1,210,000
1,564,838
2,774,838
2007 .................
1,325,000
1,446,862
2,772,862
2008 .................
1,455,000
1,317,676
2,772,675
2009 .................
1,600,000
1,175,812
2,775,812
2010 .................
1,755,000
1,019,812
2,774,812
2011 .................
1,925,000
848,700
2,773,700
2012 .................
2,115,000
661,012
2,776,012
20.1.3 .................
2,320,000
454,800
2,774,800
2014 .................
2,540,000
228,600
2,768,600
TOTAL
$27,375,000
$67,233,975
94,608,975
149
Page 5 - Application
By December 31, 1982 the City of Little Rock, Arkansas will have ex-
pended the sum of $6,018,845.00 on the above debt service require-
ments, which sum the City requests the Board to include as being
eligible for State assistance together with the balance of the debt
service requirements.
IMATED NATIONAL AND REGIONAL DELEGATES
In order to determine delegates that will be coming to Little Rock as a
result of the new Statehouse Convention Center Complex, we have prepared
projections based on actual bookings of regional and national delegates
a
v
{
j
that are now recorded at the Complex. It will be the expenditures of
these delegates that will be used in the calculations of State turn back
funds.
Projected delegate expenditures and average length of stay were
determined by a report prepared by the International Association of
Conventions and visitors Bureau and the United States Travel Data Center
in Washington, D. C. The report was made in -1978 -1979 and has been
updated for inflation based on information from the United States Travel
Data Center. Although the inflation factor of 10% was approved for 1981
expenditures, we have applied an annual inflation factor of only 5% for
each year thereafter through 1986. See Table I.
In Table II the above calculations are extended to show the total
spending expected by regional and national delegates in the Statehouse
Convention Center Complex through 1986.
150
Page 6 - Application
ESTIMATED ADDITIONAL STATE SALES AND INCOME TAXES
TOGETHER WITH INVESTMENT MULTIPLIER
Act 763 of 1977 specifies that the State revenues to be considered in
making estimates of impact are those derived from the income and gross
sales tax. Thus, the estimates developed in this report are based on
individual and corporate income taxes and the gross sales tax.
The Act also specifies that an "investment multiplier" of from 2 to 5
may be used. The term "investment multiplier" is not defined in the
Act. Thus, for purposes of this report, it is assumed to mean the
number of times a dollar spent by a delegate will "turn over" in the
Arkansas economy. In its letter to the State Board of Finance dated
June 8, 1977, the City of Little Rock assumed a multiplier of four (4).
This multiplier was accepted at that time by the Board of Finance. The
estimates that follow are predicated on that assumption.
I'
Since the "multiplier" may be said to act on Gross State Product, rather
than income, but the subject taxes are generally related to income, a
transition must be made between Gross State Product and Personal Income.
Data, for 1975, developed by the Industrial Research and Extension
Center indicate the Gross State Product to be $9,745,000,000. For that
same year, the Bureau of Economic Analysis of the United States
Department of Commerce estimated Personal Income in Arkansas to be
$9,775,000,000. (Subsequent alterations in base data from which these
estimates were derived may have caused the actual numbers to be modified
slightly since the original work was carried out.) Given the si.mi.larilly
between these two estimates, it is assumed that, numerically, Gross;
151
Page 7 - Application
State Product and Personal Income in Arkansas are equal. Table III con-
t
tains a step -by -step illustration of the estimating methodology used to
4 develop the estimates of the impact on State revenue of the Statehouse
Convention Center Complex.
Table IV extends projected delegate expenditures to show impact on State
revenues through additional sales and income taxes as affected by the
multiplier and extends to the portion of that increase allowable for
refund to the City.
ADDITIONAL EXPENSE TO THE SPATE
We can foresee only nominal expense to the State resulting from services
to the proposed development and question whether the expense is signifi-
cant enough to be measured.
The City will provide all local utility, fire protection and police ser-
vices. A significant amount of the delegate traffic will arrive by air.
transportation. We can anticipate convention delegates and other atten-
dees from surrounding states to travel by automobile, but the timing of
this traffic should be spread so that no burden is placed on the State
Police or Highway Department, offsetting what nominal State expenses
may be generated is the production of additional gasoline taxes and
other special taxes which are not included in the computation of "nddi-
tional State Sales and Income Tax."
i
7
Page 8 - Application
LOCAL SUPPORT
I
The proposed development has been endorsed by the Little Rock -North
Little Rock Metropolitan Chamber of Commerce, Metropolitan Area Planning
a
Commission, Pulaski Visitors douncil, Arkansas Hospitality Association,
major business enterprises and the full spectrum of organized groups.
REOUEST FOR FORMAL DETERMINATION
As provided under Act 763 of 1977, the City is submitting this applica-
tion for the State Board of Finance to make certain formal determina-
tion. First, we should remind the Board that, regardless of its deter-
, mination, the Act limits the State assistance to 808 of the debt service
for the bonds issued by the local community. Considering the protection
of this 808 limit and the fact that conventions are booked years in
advance, we think it is reasonable to request that the State assistance
be set at the allowable level of two- thirds of the additional State
sales and income taxes estimated to be produced. As the facility is in
operation and reaches a stabilized volume level, the ratio might be
reduced from two - thirds to a lower level. In any event, regardless of
the ratio set, the assistance cannot exceed 808 of the debt service.
Further, when the local community's bonds have been retired, all State
assistance terminates.
Accordingly, we request the Board determine that-
The proposed facilities are Eligible Facilities;
The State assistance shall, be two - thirds of additional state
sales tax revenues and ,IddiLionaL state incurnu
tax revenues estimated to be generated by the
f:nc.I,1.LCinetr
h
• a •
Page 9 - Application
The estimated state sales and income tax revenues to be pro-
duced under stabilized operations is $794,470.00,
in 1983, subject to adjustment based on surveys
of actual delegate /attendee expenditures and
5 numbers of such attendees, inflation and other
such factors.
The economic multiplier for computing additional state sales
and income tax revenues is 4x;
The City of Little Rock, Arkansas is entitled to the sum of
$529,117.00 as State assistance for the year 1983
and the sum of $611,114.00 for the year 1984, and
thereafter in adjusted amounts based on the total
national and regional delegate expenditures until
the entire bond debt of the City of Little Rock
is paid in full. -
Respectfully submitted,
CI
B1�
BY
153
CITY MANAGER
BY
CHAIRMAN - ADVERTISING AND
PROMOTION COMMISSION
TABLE I
154
YEAR
EXPENDITURES PER DELEGATE
DAILY
TOTAL
1978 -1979
$55.621
$150.004
1980 -1981
61.002
165.005
1982
64.053
173.00
1983
67.25
182.00
1984
70.62
191.00
1985
75.15
200.00
1986
77.85
210.00
I.
w
EXPENDITURES PER TRADESHOW DELEGATE
YEAR DAILY
1978 -1979
78.00
211.00
1980 -1981
85.80
232.00
1982
90.09
243.00
1983
94.59
255.00
1984
99.32
268.00
1985
104.29
282.00
1986
109.50
296.00
EXPENDITURES PER EXHIBITOR
DAILY TOTAL
1978 -1979
193.00
521.00
1980 -1981
212.30
573.00
1982
222.92
602.00
1983
234.07
632.00
1984
245.77
664.00
1985
258.06
697.00
1986
270.96
732.00
1 1978 -1979
Convention Expenditure
Survey, Convention Bureau, Little
Rock.
2 Adjusted for inflation by 10% as estimated by the U. S. Travel Data
Center, Washington, D.C.
3 Assuming a 5% inflation rate for each year from 1981 through 1986.
4 Based on 1978 -1979 Delegate Expenditure Survey on Little Rock Conven-
tions conducted by the International. Association of Convention and Visi.tor
Bureaus and the United States Travel Data Center. Average length of stay per
delegate was 2.5 days and average length of stay per exhibitor. was 2.9 day,
which averages to 2.7 days per delegate (including exhibitors) in Little Rock.
5 ri.nal figures have been rounded to nearest dollar..
155
TABLE II
NATIONAL AND REGIONAL
DELEGATES AND EXPENDITURES
YEAR DELEGATES EXPENDITURES
1983 16,985 $4,453,309.00
1984 18,683 5,143,433.00
1985 20,551 5,971,463.00
1986 22,606 6,860,465.00
Regional and National Convention delegates, trade show delegates,
and exhibitors.
1983 9,430 C/D @ 67.25 = $634,167.00
5,400 T /S /D @ 94.59 = 510,786.00
2,155 Exhs. @ 234.07 = 504,421.00
Total 16,985 $1,649,374.00
X 2.7 Av. Stay
Total Delegate Expenditures = 4,453,309.00
X 4 multiplier
$17,813,239.00
X .0446 tax factor
794,470.47
X .666 2/3
$529,117.33 1983
turn back
ti
TABLE III
ILLUSTRATION OF THE METHODOLOGY USED
TO COMPUTE STATE REVENUE IMPACT
Individual Income
Corporate Income
Gross Sales2
Total
1980
Tax Collections
$314,698,501
83,580,805
332,566,535
$730,845,861
Personal Income in 19803
_ $16,402,000,000
Total Tax Collections = Effective Tax Rate
Personal Income
$730,845,861 = 0.044558 or 4.46%
$16,402,000,000
1983
Delegate Spending $4,453,309.00
Multiplier x 4
Personal Income Generated $17,813,239.00
Effective Tax Rate x .0446
Additional Revenues $ 794,470.00
1 Individual. Income Tax liability as shown in Arkansas
Individual Income Tax Data from 1980 Returns, Revenue Division,
Department of Finance and Administration, January 6, 1982, p. 7.
2 Statement of Gross Tax Collections, Revenue Division,
Department of Finance and Admi istration, January 1, 1982
3
If i.i rUnu ol` 14c01)O111Lc Analyala, U.H. Uepn cl_mronL ul'
April. 1.982.
4 'fable II.
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