Applicability of Tax: General sales & use tax- Applies to all goods and services taxable under state law. 

Administrative Costs: 3% of gross collections withheld by the state for administration of the tax. 

Credits or Exemptions: Tax subject to same credits & exemptions available under state sales & use tax law 

Subsequent Amendments and Amendment Purpose: 

1. Date: __ ...:.../...!..CJ--1.1....::3~-------- Amending Ordina nee No. __ ....!:: {,.:.....) _".:.....1:::.3_-_'-1:.........:: 7 ____ _ 

Purpose of Amendment: -....! 'l::....:....!:: p/::..:..f.7 ~t ---+fl~e-::....::'1...:...f....:.. t' .ll t)::....,,,t.... f- ___:.J...!..7..:::...v _.!_fv::... ·-..!:.h:..!.c...:... /J:...:.rl_-=:s:...__ ____ _ 

2. Date: _!.._,f~--rq..,t..-11------ Amending Ordinance No. _..;:::0_· ·_- a.!... 1L7_- ....£. Lf....:..5:;__ ___ _ 

3. Date: --""'""'c_.r.." '--'5~------- Amending Ordina nee No. --"()"---.~:::. 5''-J~'- ·'7 ____ _ 

Purpose of Amendment: -+__..!.....l.....!::.A~1..l.---r;j)c..:....::.c....:.· r.....;f-'-..:.... ,· .::. o _....,..:...___:::.. P-t-f=- -..L./_7. !,.!::.... · ---..:.~ ___ h_._P_n_(-6 ________ _ 

4. Date: --- ------- ------- Amending Ordinance No.----------------

PurposeofAmendment: ---------------------------------------

Is the tax on aviation fuel distributed for airport related purposes: Yes oGJ / If No, state reason 

for belief that the tax is grandfathered. 

The state of Arkansas administers local taxes for all cities and counties in this state and commits that the 

Arkansas Department of Finance and Administration will notify the FAA of any subsequent amendments 

to this tax that could affect grandfathered status. 

Date 
ptJRPOSES. 

WHEREAS there is a great need for immediate improvement of 

Municipal Services and stable source of revenue to finance local 

government services; and whereas Act 990 of 1975, as amended, provides 

for the local option of adoption of a city-wide sales and use tax, 

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY 

OF CONWAY, ARKANSAS: 

Section 1. Levy of Sales and Use Tax. There is hereby levied 

a local sales (gross receipts) and use tax at the rate of One Percent 

of the receipts from the sale at retail within the City of Conway, 

Arkansas, on all items which are subject to taxation under the 

Arkansas Gross Receipts Tax Act of 1941, Act 386 of 1941 of the 

Acts of Arkansas, as said Act has been heretofore or may be amended, 

and under the Arkansas Compensating Tax Act of 1949, Act 487 of the 

1949 Acts of Arkansas, as said Act has been heretofore or may be 

amended and by Act 990 of 1975 as amended by Act 133 of 1981, of the 

Acts of Arkansas. 

Section 2. Single Transaction Rebate. Taxes in excess of TwentyFive Dollars paid to the City of Conway on a single transaction shall 

be rebated to the purchaser of the item subject to taxation under 

Section 1 hereof. The City Clerk of the City of Conway, Arkansas, 

may promulgate reasonable rules and regulations not inconsistent 

with the provisions of the ordinance to implement the rebate procedure 

of taxes paid in excess of Twenty-Five Dollars per single transaction. 

Section 3. Special Election. Said question of the levy of a 

sales and use tax as provided in Section 1 hereof shall be submitted 

to a vote of the citi~s of Conway, Arkansas, by special election to 

be held on the 

~t:J.t; her-day of ~~1981. 
"AGAINST adoption of a One-Percent (1%) Local Sales and Use Tax within the City" 

Section 4, Emergency Clause. That the City Council for the 

City of Conway, Arkansas has determined that there is a great need 

to establish a stable source of revenue to finance vital municipal 

services, and this ordinance being necessary for the preservation 

of the health, safety and welfare of the citizens of Conway, Arkansas, shall become law immediately upon its passage and approval. 

Passed and approved on this ,Jj{. day of September, 

Attested: 

c~i~k~-

Approvvs;d • 

. J ,..A 

Mayor 

1981. 

(j 
I, Michael Garrett, the duly elected, qualified, and acting: Clerk-Treasurer of the City of 

Conway, Arkansas, do hereby certify that the attached and foregoing is a true and correct 

copy of ordinance presented to the City Council of the City of Conway, Arkansas, at a 

meeting of that body held on the 24th day of September 1981, same is duly recorded in 

the minutes of meeting of said Council. 

Witness, my band and seal of the City of Conway, Arkansas, this 24th day of February 

2006. 

CITY CLERK-TREASURER 

Seal 
AND POLICE STATION FACILITIES AND EQUIPMENT; LEVYING A- .5% LOCAL_~AND USE TAX TO RETIRE SAID BONDS; AUTHORIZING THE PLEDGE OF ALL OR A SPECIFIED PORTION OF THE CITY'S PROCEEDS FROM AN EXISTING 1% LOCAL SALES AND USE TAX LEVIED BY THE CITY TO RETIRE SAID BO~~S; CALLING 

A~ SETTING A DATE FOR A SPECIAL ELECTION TO REFER TO A VOTE OF THE PEOPLE THE QUESTION OF ISSUING SAID BONDS TO BE REPAID FROM THE PROCEEDS OF SAID TAXES; DECLARING AN EMERGENCY; A~ FOR OTHER PURPOSES. 

WHEREAS, the City of Conway, Arkansas (the ncity11 ) has outstanding an issue of Sales and Use Tax Capital Improvement Bonds dated August 1, 1.987 (the 11 1987 Bonds 11 ), issued under Amendment No. 62 to the constitution of the State of Arkansas, as implemented by Act 871 of 1985, as amended {the 11 Act 11 ); and 

WHEREAS, the 1987 Bonds are secured by the pledge of an existing 1% sales and use tax levied by the City pursuant to Ordinance No. 081-42 adopted by the City on September 24, 1981 (the 11 1% Sales and Use Taxu) ; 

WHEREAS, the City Council of the City has determined that certain capital improvements are needed and that the funds therefor 

can best be obtained by the issuance of capital improvement bonds pursuant to the Act; and 

WHEREAS, the estimated cost to the City of these capital 

im~rovements will be approximately $14,000,000; and 

WHEREAS, the City can issue Sales and Use Tax Capital Improvement Bonds, Series 1993A in principal amount not to exceed $14,000,000 to finance the capital improvements and pay costs of issuance; 

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CONWAY, ARKANSAS THAT' 

Section l.. (a) The City Council hereby authorizes the issuance of capital improvement bonds under the Act, in a principal amount not to exceed $14, 000, 000 for the purpose of acquiring, constructing and/or equipping street improvements, solid waste collection, disposal, compacting and recycling facilities and equipment, public park facilities, fire fighting facilities and equipment and police station facilities and equipment; provided, however, that each purpose for which the bonds are to be issued shall be submitted as a separate question at the election 
Section 2. (a) To retire the aforesaid bonds, but subject to the limitation prescribed by paragraph (b) of this section, there is hereby levied a local sales (gross receipts) tax at the rate of one-half percent (.5%) on the receipts of the sale at retail within the City of all items which are subject to taxation under the Arkansas Gross Receipts Tax Act of 1941, Act 386 of the 1941 Acts of Arkansas, as said Act 386 has been heretofore or may be hereinafter amended; and that there is hereby imposed an excise tax on the storage, use, or other consumption within the City of tangible personal property purchased, leased, or rented from any retailer from outside the state for storage, use, or other consumption in the City at a rate of one-half percent (.5%) of the sale price of the property or, in the case of leases or rentals, of said lease or rental price, which tax shall be collected according to the terms, procedures, and regulations of the Arkansas Compensating Tax Act of 1949, Act 487 of the 1949 Acts of Arkansas, as said Act 487 has been heretofore or may hereinafter be amended. The aforesaid bonds shall also be secured from a pledge of and lien upon the existing 1% Sales and Use Tax. 

(b) The aforesaid sales and use taxes shall be levied and collected only on the first two thousand five hundred dollars ($2,500) of gross receipts, gross proceeds or sales price from a single transaction. Vendors collecting, reporting, and remitting said taxes shall show said taxes as a separate entry on the tax report form filed with the Commissioner of Revenues. 

(c) The term 11 Single transaction11 is defined in Ordinance No: 0-87-17 of the City. 

Section 3. At the annual school election to be held in the usual polling places in the City on september 21, 1993, there shall be submitted to the electors of the City the question of issuing the aforesaid bonds to be secured as described in Section 2 (a) above. 

Section 4. 

the election in 

The questions shall be placed on substantially the following form: the ballot for 

There is submitted to the qualified electors of the City of Conway, Arkansas, the issuance of capital improvement bonds (the 11 Bonds n) , under Amendment No_ 62 to the Arkansas Constitution, as implemented by Act 871 of 1985, as amended, for the purpose of acquiring, 

-2-

~aaooD~6.wPs 

061993 
first $2,500 of gross receipts, gross proceeds or sales price on each single transaction, the proceeds of which shall be pledged to pay the principal of, interest on, and fees and expenses in connection with said Bonds, if approved. _. _e-~ 

t ' 

In addition, the Bonds, if approved, w e secured by a pledge of and lien upon all or a portion of the City's proceeds of an existing 

one percent (1%) local sales and use tax levied by the City pursuant to Ordinance No. 081-42 adopted by the City 

on September 24, 1981 (the 11 1% Sales and Use Tax). The extent and nature of the pledge and lien of the existing 1% Sales and Use Tax on the Bonds shall be determined by subsequent ordinance of the City. In the event that the 

voters shall approve only a portion of the Bonds proposed to be issued, there shall only be issued Bonds for the purpose(s) approved by the voters. Any Bonds that are approved may be combined into a single issue of Bonds, which may be issued at one time or in series from time to time. 

Vote on each question by placing an 11 X11 in one of the following squares, either for or against: 

Question One; 

Bond issue in principal amount not to exceed $8,000,000 for the purpose of acquiring, constructing, reconstructing, repairing, straightening and widening of streets in the City, which may include related sidewalk, traffic signal, curbing, guttering and drainage improvements. 

FORo or AGAINSTo 

Question Two: 

Bond issue in principal amount not to exceed $2,500,000 for the purpose of acquiring, constructing and equipping of various solid waste collection, disposal, compacting and recycling facilities and equipment in the City, which 

-3- RBBOOD46.\VPS 

08!9~3 
for the purpose of acquiring, constructing and equipping public park facilities in the City, which may include the acquiring, constructing and equipping of a multi-purpose conununity center/gymnasium, softball fields and other related recreational facilities, equipment and apparatus. 

or AGAINST, 

Question Four: 

Bond issue in principal amount not to exceed $575,000 for the purpose of acquiring, constructing and equipping fire fighting facilities and equipment in the City, which may include the acquiring, constructing and equipping of a fire station and related fire fighting equipment and other public safety equipment. 

or AGAINST, 

Question Five: 

Bond issue in principal amount not to exceed $575,000 for the purpose of acquiring and equipping police station facilities and equipment in the City, which may include the acquiring and equipping of police substation communication facilities and equipment and other public safety equipment. 

or AGAINST, 

Section 5. The election shall be held and conducted and the vote 

municipal 

cast and the results declared in the manner provided for elections under the election laws of the State as then in effect. Only qualified voters of the City shall have the right to vote at the election. The City Clerk is hereby authorized and directed to give notice of the election by one advertisement in a newspaper having a general circulation within the City, the publication to be not less than ten (10) days prior to the date of the election. 

Section 6. A certified copy of this Ordinance shall be furnished to the Faulkner County Board of Election Commissioners, so that it may place the question on the ballot for the election, provide the necessary election officials and supplies, and canvass 

-4- RB.BOOD46.WP5 

C81993 
date of publication of the proclamation. /1 Section 8. The aforesaid . 5% sales and use tax shall be .0!1 levied and collected until all bonds authorized in this ordinance 

,~ and approved by the voters shall have been recired in full. 

: 

~ 

fin 0 Section 9. J'l.ll ordinances and parts thereof in conflict herewith are hereby repealed to the extent of such conflict, 

~t"~Ji~~!~3::::i~d;~:d 

!l~o 

:~~~~ce;;Jf'·.:;;%J~l' 

O::n~Y~;2 

Section 10. The City Council hereby determines that the City of Conway is in dire need of accomplishing and providing essential capital improvements; that an appropriate way to provide such capital improvements is by the levying of a .5% sales and use tax on the gross receipts from business within the City and by the issuance of bonds payable from such tax revenues and also by a pledge of and lien upon all or a specified portion of the City's proceeds of the City's existing 1% Sa·les and Use Tax levied pursuant to Ordinance No. 081-42 of the City; and, that this ordinance shall be given immediate effect so that the essential capital improvements may be acquired, constructed and/or equipped as soon as possible. Therefore, an emergency is hereby declared to exist and this ordinance being necessary for the immediate preservation of the public health, safety, and welfare shall be in full force and effect from and after its passage and approval. 

PASSED ]I~ APPROVED this 20th day of August, 1993. 

ATTEST, 

ByFl}~~ ' City Clerk 

-5- RBBD0046.WP5 

081993 
(S E A L) 
COURT FACILITIES; LEVYING A .5% LOCAL SALES AND USE TAX TO 

RETIRE SAID BONDS; AUTHORIZING THE PLEDVE OF ALL OR A 

SPECIFIED PORTION OF THE CITY'S PROCEEDS FROM AN EXISTING 

1% LOCAL SALES AND USE TAX LEVIED BY THE CITY TO RETIRE 

SAID BONDS; CALLING AND SETTING A DATE FOR A SPECIAL 

ELECTION TO REFER TO A VOTE OF THE PEOPLE THE QUESTION OF 

ISSUING SAID BONDS TO BE REPAID FROM THE PROCEEDS OF SAID 

TAXES; DECLARING AN EMERGENCY; AND FOR OTHER PURPOSES. 

WHEREAS, the City Council of the City has determined that certain capital 

improvements are needed within the City and that the funds therefor can best be obtained by the 

issuance of capital improvement bonds pursuant to Amendment No. 62 to the Constitution of the 

State of Arkansas, as implemented by Act 871 of 1985, as amended (the "Act"); and 

'WHEREAS, the total estimated cost to the City of these capital improvements is 

approxlinately $25,000,000; and 

WHEREAS, the City can issue its Sales and Use Tax Capital Improvement Bonds, Series 

1997A in principal amount not to exceed $25,665,000 to finance said capital improvements, to 

fund a debt service reserve, and to pay costs of issuance; and 

WHEREAS, the City has levied an existing 1% sales and use tax pursuant to Ordinance 

No. 0-81-42 adopted on September 24, 1981 (the "!% Sales and Use Tax"); 

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE 

CITY OF CONWAY, ARKANSAS THAT: 

Section 1. The City Council hereby authorizes the issuance of capital improvement 

bonds under the Act, in an aggregate principal amount not to exceed $25,665,000 for the 

purpose of acquiring, constructing and/or equipping street improvements, solid waste collection, 

disposal, compacting and recycling facilities and equipment, public park facilities and equipment, 

fire fighting facilities and equipment, police station facilities and equipment and municipal court 

facilities and equipment; provided, however, that each purpose for which the bonds are to be 

issued shall be submitted as a separate question at the special election hereinafter provided for 

and that the total amount ·of bonds to be issued shall not exceed the principal amount, in the 

aggregate, approved by the voters. 
procedures, and regulations of the Arkansas Compensating Tax Act of 1949, Act 487 of the Acts 

of the General Assembly of the State of Arkansas of 1949, as said Act 487 has been heretofore 

or may hereinafter be amended. The aforesaid bonds shall also be secured from a pledge of and 

lien upon the City's existing 1% Sales and Use Tax. 

(b) The aforesaid sales and use taxes shall be levied and collected only on the first 

two thousand five hundred dollars ($2,500) of gross receipts, gross proceeds or sale, rental or 

lease price from a single transaction. Vendors collecting, reporting, and remitting said taxes 

shall show said taxes as a separate entry on the tax report form filed with the Commissioner of 

Revenues of the State of Arkansas. 

(c) The term "single transaction" is defined in Ordinance No. 0-83-17 of the City, 

as heretofore or hereinafter amended. 

Section 3. At a special election to be held in the usual polling places in the City on 

October 7, 1997, there shall be submitted to the electors of the City the question of issuing the 

aforesaid bonds to be secured as described in Section 2(a) above. 

Section 4. The questions shall be placed on the ballot for the election in substantially 

the following form: 

There is submitted to the qualified electors of the City of Conway, 

Arkansas, the issuance of capital improvement bonds (the "Bonds"), under 

Amendment No. 62 to the Arkansas Constitution, as implemented by Act 871 of 

1985, as amended, for the purpose of acquiring, constructing and! or equipping 

(i) street improvements in an amount not to exceed $10,260,000, (ii) solid waste 

collection, disposal, compacting and recycling facilities and equipment in an 

amount not to exceed $4,620,000, (iii) public park facilities and equipment in an 

amount not to exceed $3,080,000, (iv) fire fighting facilities and equipment in an 

amount not to exceed $3,850,000, (v) police station facilities and equipment in 

an amount not to exceed $2,825,000, and (vi) municipal court facilities and 

equipment in an amount not to exceed $1,030,000. The City has levied a .5% 

-2-

RSS03A99 

090397 
shall approve only a portion of the Bonds proposed to be issued, there shall only 

be issued Bonds for the purpose(s) approved by the voters. Any Bonds that are 

approved may be combined into a single issue of Bonds, which may be issued at 

one time or in series from time to time. 

Vote on each question by placing an appropriate mark in one of the 

following squares, either for or against: 

Question One: 

Bond issue in principal amount not to exceed $10,260,000 for the purpose of 

acquiring, constructing, reconstructing, repairing, straightening and widening of 

streets in the City, which may include related sidewalk, traffic signal, curbing, 

guttering and drainage improvements. 

FOR: 0 or AGAINST: 0 

Question Two: 

Bond issue in principal amount not to exceed $4,620,00J for the purpose of 

acquiring, constructing and equipping of various solid waste collection, disposal, 

compacting and recycling facilities and equipment in the City, which may include 

the acquisition of land and the construction and equipping of a recycling facility 

for use by the City, the acquisition of new sanitation trucks and the acquisition 

of other recycling equipment. 

FOR: 0 or AGAINST: 0 

Question Three: 

Bond issue in principal amount not to exceed $3,080,()(X) for the purpose of 

acquiring, constructing and equipping public park facilities in the City, which 

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RSS03A99 

090397 
City, which may include the acquiring, constructing and equipping of a fire 

station, a training facility and related fire fighting equipment and other public safety equipment. 

FOR: 0 or AGAINST: 0 

Question Five: 

Bond issue in principal amount not to exceed $2,825,000 for the purpose of 

acquiring and equipping police station facilities and equipment in the City, which 

may include the acquisition of land and the acquiring, constructing and equipping 

of a police communications center, a training center and other public safety 

facilities and equipment. 

FOR: 0 or AGAINST: 0 

Question Six: 

Bond issue in principal amount not to exceed $1,030,000 for the purpose of 

renovating an existing building owned by the City for the purpose of housing 

municipal court facilities, which may include the acquisition of related equipment 

and the construction or improvement of parking lots. 

FOR: 0 or AGAINST: 0 

Section 5. The election shall be held and conducted and the vote cast and the results 

declared in the manner provided for municipal elections under the election laws of the State as 

then in effect. Only qualified voters of the City shall have the right to vote at the election. The 

City Clerk is hereby authorized and directed to give notice of the election by one advertisement 

-4-

RSSOJA99 

090397 
Section 7. The results of the election shall be proclaimed by the Mayor. The Mayor's 

proclamation shall be published one (1) time in a newspaper having general circulation in the 

City. The results as proclaimed shall be conclusive unless attacked in the Circuit Court of 

Faulkner County within thirty (30) days after the date of publication of the proclamation. 

Section 8. The aforesaid .5% sales and use tax shall be levied and collected until all 

bonds authorized in this ordinance and approved by the voters shall have been retired in full. 

Section 9. The City considers this Ordinance to be its declaration of official intent to 

issue bonds and to make reimbursement to the City with a portion of the proceeds of such bonds 

for all original expenditures incurred by the City in acquiring, constructing or equipping those 

projects approved by the voters berween the date that is sixty (60) days prior to the date of 

adoption of this Ordinance and the date the bonds are issued, plus a de minimis amount and 

preliminary expenditures, as such terms are defined in Section 1.150-2(1) of the Federal Income 

Tax Regulations, for all purposes of Section 1.150-2 of the Federal Income Tax Regulations. 

Section 10. Rose Law Firm, a Professional Association, is hereby engaged as Bond 

Counsel with respect to the issuance of the Bonds, the fees and expenses of which fum shall be 

a cost of issuance of the Bonds to be paid with Bond proceeds. 

Section 11. Stephens Inc. and Crews & Associates, Inc. are hereby engaged as 

underwriters with respect to the issuance of the Bonds, with Stephens Inc. to be designated as 

managing underwriter. The fees and expenses of such underwriters shall be a cost of issuance 

of the Bonds to be paid with Bond proceeds. 

Section 12. All ordinances and parts thereof in conflict herewith are hereby repealed to 

the extent of such conflict. 

Section 13. The City Council hereby detennines that the City of Conway is in dire need 

of accomplishing and providing essential capital improvements; that an appropriate way to 

provide such capital improvements is by the levying of a .5% sales and use tax on the gross 

receipts from business within the City and by the issuance of bonds payable from such tax 

-5-

RSSOJA99 

090397 
APPROVED: 

ATTEST: 

(SEAL) 

-6-

RSS03A99 

090397 
(SEA L) 

-7-

~ZM~ City Clerk 

RSS03A99 

090397 
PURPOSE OF REDEEMING THE CITY'S OUTSTANDING SALES AND 

USE TAX CAPITAL IMPROVEMENT BONOS, SERIES 1997A, AND (3) THE 

ISSUANCE OF NOT TO EXCEED $7,525,000 OF CAPITAL IMPROVEMENT 

BONOS BY THE CITY FOR THE PURPOSE OF FINANCING THE 

ACQUISITION, CONSTRUCTION AND EQUIPPING OF POLICE STATION 

FACILITIES; LEVYING THE GENERAL LOCAL SALES AND USE TAX AT 

THE RATE OF ONE-QUARTER OF ONE PERCENT (0.25%) WITHIN THE 

CITY; LEVYING A SPECIAL LOCAL SALES AND USE TAX AT THE RATE 

OF ONE-QUARTER OF ONE PERCENT (0.25%) WITHIN THE CITY, 

WHICH TAX SHALL CEASE UPON RETIREMENT OF THE BONOS; 

DEFINING THE TERM "SINGLE TRANSACTION'; PRESCRIBING OTHER 

MATTERS PERTAINING THERETO; AND DECLARING AN EMERGENCY 

WHEREAS, the City Council of the City of Conway, Arkansas (the "City") has 

determined that additional revenues can be obtained to fund City capital improvements by restructuring existing City indebtedness secured by sales and use tax receipts through the 

refunding of the City's outstanding Sales and Use Tax Capital Improvement Bonds, Series 

1997A (the "Prior Bonds"); and 

WHEREAS, the City Council has also determined that there is a critical need for a 

source of revenue to finance police station facilities within the City, including the acquisition of 

land and the construction and equipping of a building or buildings and related facilities thereon; 

and 

WHEREAS, Title 26, Chapter 75, Subchapter 2 of the Arkansas Code of 1987 

Annotated (the "Municipal General Sales and Use Tax Act") authorizes the levy of general 

citywide sales and use taxes; and 

WHEREAS, Title 14, Chapter 164, Subchapter 3 of the Arkansas Code of 1987 

Annotated (the "Local Government Bond Act") authorizes the issuance of capital improvement bonds by municipalities, which bonds may be secured by the pledge of (i) all or a portion of the 

receipts of the general citywide sales and use tax prescribed by the Municipal General Sales and 

Use Tax Act and (ii) all of the receipts of the special citywide sales and use tax prescribed by the 

Local Government Bond Act; and 

WHEREAS, said general and special citywide sales and use taxes are to be levied and 

collected only on the first $2,500 of each single transaction; and 

4843-9929-95&4.3 
and use tax (the "Special Sales and Use Tax") and (ii) all of the receipts of a one-quarter of one 

percent (0.25%) general citywide sales and use tax (the "General Sales and Use Tax"), all as 

authorized by the Local Government Bond Act; and 

WB;EREAS, receipts of the General Sales and Use Tax will be utilized to the extent 

needed, after application of the receipts of the Special Sales and Use Tax, for the payment of 

scheduled debt service on the Refunding Bonds and the Improvement Bonds, and thereafter may 

be utilized at the direction of the City Council to finance capital improvements within the City; 

and 

WHEREAS, the purpose of this Ordinance is to call a special election on the levy by the 

City of the General Sales and Use Tax and the issuance by the City of the Refunding Bonds and 

the Improvement Bonds, and to define the term "single transaction"; 

NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Conway, 

Arkansas: 

Section 1. That under the authority of the Municipal General Sales and Use Tax Act and 

subject to approval by the electors of the City as provided in Section 4 below, there is hereby 

levied a sales tax at the rate of one-quarter of one percent (0.25%) on the gross receipts from the 

sale at retail within the City of all items and services which are subject to taxation under the 

Arkansas Gross Receipts Act of 1941, as amended (Arkansas Code of 1987 Annotated §26-52-

101 et seq.), and an excise (or use) tax on the storage, use, distribution or other consumption 

within the City of tangible personal property or taxable services subject to taxation under the 

Arkansas Compensating Tax Act ofl949, as amended (Arkansas Code of1987 Annotated §26-

53-101 et seq.), at the rate of one~quarter of one percent (0.25%) on the sale price of the property 

or, in the case of leases or rentals, on the lease or rental price (collectively, the "General Sales 

and Use Tax"). The General Sales and Use Tax shall be levied and collected only on the first 

$2,500 of each "single transaction" (as defined in Section 10 hereof). The levy and collection of 

the General Sales and Use Tax shall commence on and as of such date as provided in the 

Municipal General Sales and Use Tax Act. Revenues resulting from the collection of the 

General Sales and Use Tax shall be utilized to the extent needed (after application of receipts 

from the Special Sales and Use Tax described below) for the payment of scheduled debt service 

on the Refunding Bonds and the Improvement Bonds, and thereafter shall be applied as directed 

by the City Council to fmance capital improvements within the City. 

Section 2. That under the authority of the Local Government Bond Act and subject to 

approval of the issuance of either the Refunding Bonds or the Improvement Bonds by the 

electors of the City as provided in Section 4 below, there is hereby levied a sales tax at the rate of 

4843-9929-9584.3 2 
Sales and Use Tax shall be levied and collected only on the first $2,500 of each "single 

transaction" (as defined in Section 10 hereof). The levy and collection of the Special Sales and 

Use Tax shall commence on and as of April 1, 2006, and shall cease upon retirement of the 

Refunding Bonds and the Improvement Bonds. Revenues resulting from the collection of the 

Special Sales and Use Tax shall be utilized solely for the payment of debt service on the 

Refunding Bonds and the Improvement Bonds. 

Section 3. That under the authority of the Local Government Bond Act and subject to 

approval by the electors of the City as provided in Section 4 below, there is hereby authorized (1) 

the issuance of the City's refunding bonds in the aggregate principal amount of not to exceed 

$11,565,000 (the "Refunding Bonds") for the purpose of redeeming the City's outstanding Sales 

and Use Tax Capital Improvement Bonds, Series 1997A (the "Prior Bonds"), and (2) the 

issuance of the City's capital improvement bonds in the aggregate principal amount of not to 

exceed $7,525,000 (the "Improvement Bonds") for the purpose of acquiring, constructing and 

equipping an integrated City police station facility (the "Project"). If the issuance of the 

Refunding Bonds and/or the Improvement Bonds is approved by the electors of the City, such 

bonds may thereafter be issued in one or more series from time to time in an aggregate principal 

amount not to exceed the respective principal amount(s) approved by the City's electors. If 

approved by the electors of the City and issued, the Refunding Bonds and the Improvement 

Bonds shall be secured by a pledge of and a lien upon all of the receipts of the Special Sales and 

Use Tax and the General Sales and Use Tax, as authorized by the Local Government Bond Act. 

Section 4. That there be, and there is hereby called, a special election to be held on 

Tuesday, December 13, 2005, at which election there shall be submitted to the electors of the 

City the question of the levy of the General Sales and Use Tax and the questions of the issuance 

of the Refunding Bonds and the Improvement Bonds. 

Section 5. That the questions shall be placed on the ballot for the special election in 

substantially the following forms: 

Upon approval of both Questions 1 and 2 or all of Questions 1, 2 and 3 below, and the 

issuance of the Refunding Bonds (defined in Question 2), the City's existing levy of a one-half 

of one percent (0.50%) sales and use tax securing the Prior Bonds (defined in Question 2) shall 

cease and such tax will be replaced by the one-quarter of one percent (0.25%) General Sales and 

Use Tax (defined in Question 1) and the one-quarter of one percent (0.25%) Special Sales and 

Use Tax (defined in Question 2). 

4843-9929-9584.3 3 
needed, after application of the receipts of the Special Sales and Use Tax (defined 

in Question 2 below), for the payment of scheduled debt service on the Refunding 

Bonds (defined in Question 2 below) and the Improvement Bonds (defined in 

Question 3 below), and thereafter may be utilized at the direction of the City 

Council to finance capital improvements within the City. If approved, the levy 

and collection of the General Sales and Use Tax shall commence on and as of 

such date as provided in the Municipal General Sales and Use Tax Act. If the 

issuance of the Refunding Bonds (defined in Question 2 below) is not approved, 

the General Sales and Use Tax will not be levied. 

Vote on the question by placing an "X" in one of the squares following the 

question, either for or against: 

FOR adoption of a one-quarter of one percent (0.25%) local sales and use tax 

within the City of Conway, Arkansas .................................................... D 

AGAINST adoption of a one-quarter of one percent (0.25%) local sales and use 

tax within the City of Conway, Arkansas .............................................. D 

Question Two: 

There is also submitted to the qualified electors of the City of Conway, Arkansas, 

the question of the issuance of refunding bonds in principal amount not to exceed 

$11,565,000 (the "Refunding BonM') pursuant to Title 14, Chapter 164, 

Subchapter 3 of the Arkansas Code of I 987 Annotated (the "Local Government 

Bond Act") for the purpose of refunding the City's outstanding Sales and Use Tax 

Capital Improvement Bonds, Series 1997A (the "Prior Bonds"). If the issuance of 

the Refunding Bonds is approved, the Refunding Bonds shall be secured by a 

pledge of and lien upon (i) all of the receipts of a special citywide sales and use 

tax at the rate of one-quarter of one percent (0.25%) levied pursuant to the Local 

Government Bond Act (the "Special Sales and Use Tax") and (ii) all of the 

receipts of the General Sales and Use Tax (defined in Question 1 above). If the 

issuance of the Refunding Bonds is approved, the levy and collection of the 

Special Sales and Use Tax shall commence on and as of April 1, 2006, and shall 

cease upon retirement of the Refunding Bonds and the Improvement Bonds 

(defined in Question 3 below). Upon the issuance of the Refunding Bonds, the 

City's existing levy of the half percent (0.50%) sales and use tax securing the 

Prior Bonds shall cease as provided in the Local Government Bond Act. If the 

4843-9929-9584.3 4 
AGAINST the issuance of Refunding Bonds in principal amount not to exceed 

$11,565,000 ······· ................................. ····· ................................... 0 

Question Three: 

There is also submitted to the qualified electors of the City of Conway, Arkansas, 

the question of the issuance of capital improvement bonds in principal amount not 

to exceed $7,525,000 (the "Improvement Bonds") pursuant to Title 14, Chapter 

164, Subchapter 3 of the Arkansas Code of 1987 Annotated (the "Local 

Government Bond Act") for the purpose of financing an integrated City police 

station facility to be comprised of the acquisition of land and the construction and 

equipping of a building or buildings and related facilities thereon (the "Project"). 

If the issuance of the Improvement Bonds is approved, the Improvement Bonds 

shall be secured by a pledge of and lien upon (i) all of the receipts of a special 

citywide sales and use tax at the rate of one-quarter of one percent (0.25%) levied 

pursuant to the Local Government Bond Act (the "Special Sales and Use Tax") 

and (ii) all of the receipts ofthe General Sales and Use Tax (defined in Question 1 

above). If the issuance of the Improvement Bonds is approved, the levy and 

collection of the Special Sales and Use Tax shall commence on and as of April 1, 

2006, and shall cease upon retirement of the Improvement Bonds and the 

Refunding Bonds (defined in Question 2 above). If both the levy of General Sales 

and Use Tax and the issuance of the Refunding Bonds are not approved, the 

Improvement Bonds will not be issued. 

Vote on the question by placing an "X" in one of the squares following the 

question, either for or against: 

FOR the issuance of Improvement Bonds in principal amount not to exceed 

$7,525,000 for the purpose of acquiring, constructing and equipping an integrated 

City police station facility to be comprised of land, a building or buildings and 

related facilities, which may include landscaping improvements, furniture, 

furnishings, fixtures, computers and related equipment and software, construction 

of parking facilities and sidewalks, any necessary road, drainage and utility 

improvements, and other related improvements ....................................... 0 

AGAINST the issuance of Improvement Bonds in principal amount not to exceed 

$7,525,000 for the purpose of acquiring, constructing and equipping an integrated 

City police station facility to be comprised of land, a building or buildings and 

related facilities, which may include landscaping improvements, furniture, 

4843·9929·9584.3 5 
of the special election by one advertisement in The Log Cabin Democrat, the publication to be 

not less than ten ( 1 0) days prior to the date of the election. 

Section 7. That a copy of this Ordinance shall be given to the Faulkner 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 Director of the Department of 

Finance and Administration of the State of Arkansas as soon as practica~ and at least forty-five 

(45) days prior to the date of the special election. 

Section 8. That the results of the special election shall be proclaimed by the Mayor, and 

his proclamation shall be published one time in The Log Cabin Democrat. The proclamation 

shall advise that the results as proclaimed shall be conclusive unless attacked in the Circuit Court 

of Faulkner County within thirty (30) days after the date of publication of the proclamation. 

Section 9. That the Mayor and the City Clerk, for and on behalf of the City, be, and 

they hereby are 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 General Sales and Use Tax and the 

issuance of the Refunding Bonds and/or the Improvement Bonds are approved by the electors, to 

cause the General Sales and Use Tax and the Special Sales and Use Tax to be collected in 

accordance with the Municipal General Sales and Use Tax Act and the Local Government Bond 

Act, respectively, and to perform all acts of whatever nature necessary to cany out the authority 

conferred by this Ordinance. 

Section 10. That, for purposes of the General Sales and Use Tax and the Special Sales 

and Use Tax, the term "single transaction" is defined according to the nature of the goods 

purchased as follows: 

A. When two (2) 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, off-road vehicles or farm vehicles, whether required 

to be licensed or not, airplanes, water vessels, motor vehicles, non-motorized 

vehicles or 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 

purposes of the General Sales and Use Tax and the Special Sales and Use Tax; 

B. Charges for utility services which are subject to the General Sales 

and Use Tax and the Special Sales and Use Tax, and which are furnished on a 

continuous service basis, whether such services are paid for daily, weekly, 

monthly or annually, shall be computed in daily increments, and each such daily 

4843-9929-9584.3 6 
D. When two (2) or more items of major household appliances, major 

equipment or machinery are sold, each individual unit shall be treated as a single 

transaction for the purposes of the General Sales and Use Tax and the Special 

Sales and Use Tax. 

E. For groceries, drug items, dry goods and other tangible personal 

property and/or services not expressly covered in this Section 10, a single 

transaction, for the purposes of the General Sales and Use Tax and the Special 

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 tax figure has 

been reported and remitted to the State of Arkansas. 

Section 2 of Ordinance No. 0-81-42 and Section 7 of Ordinance No .. 0-01-76 are 

hereby amended to confonn to the language in this Section 10. 

Section 11. That all ordinances and parts thereof in conflict herewith are hereby 

repealed to the extent of such conflict. 

4&43-9929-9584.3 7 
PASSED AND APPROVED this,'2$' day of Y~Ge£. 2005. 

APPROVED: 

By: 

.:kJ~ 

Mayor v 

ATTEST: 

By/~oc::.~ 

City Clerk 

(SEAL) 

4843-9929-9584.3 8 
City Clerk 

4843-9929-9584.3 9